A deal has come together for Bank of America to purchase Countrywide for $4 billion. The deal greatly expands the financial services empire of the nations largest consumer bank and will make it the largest home mortgage lender and servicer.
The news comes at an interesting time in the mortgage industry. There is risk for the purchaser even with the discounted prices on existing loans.
The products B of A has to offer is expanded with the purchase. However, lenders are tightening down considerably on home buying requirements. Many would-be home buyers are forced to consider alternate housing options. We have seen buyers in Las Vegas fight to remain qualified even while a home is in escrow because of the changes.