Countrywide Home Loans Goes to Bank of America

Ah, the saga continues. In the latest installment of "As the Mortgage Industry Crumbles," Countrywide Home Loans are no more. Bank of America announced today that it plans to buy Countrywide Financial for a $4.1 billion stock transfer.

Up until recently, countrywide was the largest mortgage lender in the country. But this year, they became the latest "victim" of the mortgage crisis that came to a head over the last few months.

How many Countrywide home loans have been made over the years? Consider this. As of August 2007, Americans owed around $13 trillion (with a 'T') in mortgages, and Countrywide Home Loans accounted for around $1.4 trillion of that amount -- a larger "slice" than any other single lender, by far.

But record-breaking home foreclosures put a major hurt on Countrywide home loans (and many other lenders). So the company that has been financially ailing for some time is now slated to be sold to Bank of America.

In a typical feel-good statement, BOA chief executive Ken Lewis said that:

Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation’s premier lender to consumers.

What does this mean to homeowners and borrowers? Well, it means two things:

• With the loss of Countrywide home loans and others such as Ameriquest, home buyers will have fewer options when shopping for a home loan in the future.
• It also means that, because of the increased scrutiny placed on the lending industry, home loans will be harder to obtain. Generally speaking, home buyers will need better credit to obtain a home loan than in the "easy lending" days of the past.

Want to learn more about Countrywide home loans and the sale of Countrywide Financial to Bank of America? Here's the latest information from the Web.