Countrywide No More
Under a cloud of litigation, Bank of America Corp. has closed on its acquisition of Countrywide Financial Corp. The merger creates a company that is the biggest U.S. bank and largest residential mortgage lender.
"Countrywide Financial is proud to have to have become a wholly owned subsidiary of Bank of America Corp," a statement on Countrywide's Web site reads today.
The Calabasas, Calif.-based company today was acquired by BoA in a deal many thought would never reach the closing table.
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Acquisition Done, Merger On
A small mortgage company has been acquired by a big bank, while two small banks have agreed to merge. Other corporate activity includes a fourth class-action lawsuit filed against IndyMac Bancorp Inc. and a New York-based lender that said it has been approved to issue securities backed by loans insured by the Federal Housing Administration.
M.I. Co. Aggressively Sues Failed Subprime Lender
A lawsuit has been filed against a failed subprime lender and its parent by a major mortgage insurance company. The insurer is not only seeking the repurchase of defective mortgages, but it is asking for contract and tort damages, as well as punitive damages.
Commercial Lender Bankrupt
Following the apparent suicide of its chairman and chief executive officer, an Arizona firm has filed for bankruptcy protection.
2 States Sue Countrywide
As Countrywide Financial Corp. shareholders voted on whether to approved Bank of America Corp.'s proposed acquisition of the company, attorneys general in California and Illinois sued the lender. Meanwhile, Washington's governor also announced actions against the lender.
National City Loses Mortgage Fraud Case
A bankruptcy judge recently ruled against National City Bank even though the borrowers committed mortgage fraud.
Bankruptcy Judge Rules on Repo Agreements
A bankruptcy judge recently ruled that an investment banking firm acted properly when it foreclosed on lower-rated subordinated notes that were part of a repurchase transaction where the principal filed for bankruptcy.
Mortgage, Foreclosure and Investor Fraud
More than 400 defendants have been charged with mortgage fraud, investor fraud or foreclosure fraud since March, the government announced today. But the spotlight was on two former hedge fund managers who allegedly cost investors $1.8 billion in losses on mortgage securities.
OCC Touts Legal Bank Actions
The Comptroller of the Currency released a report touting orders and penalties issued against mortgage banking subsidiaries of national banks and their employees for mortgage fraud and false certifications on government-insured loans. The regulator also boasted about its success in prohibiting state regulation of federally regulated national banks.
Lenders Eat Costs on Foreclosure Scam
Several mortgage lenders and servicers have agreed to a settlement with Massachusetts' attorney general in a case involving a foreclosure rescue scam orchestrated by an attorney.
