Industry News

Feds OK BofA, Countrywide merger

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The following is a real estate news roundup: Feds OK Bank of America, Countrywide merger The Federal Reserve Board has approved Bank of America Corp.'s plan to acquire Countrywide Financial Corp., saying that it would not stifle competition in mortgage lending or violate restrictions that limit depository institutions from controlling more than 10 percent of deposits. With $1.7 trillion in deposits, BofA is already the largest depository institution in the U.S. After its acquisition of Countrywide, BofA would control 10.9 percent of U.S. deposits, which could limit its ability to acquire other banks, the Federal Reserve said in an order approving the deal. The Fed said the merger would not impact competition for property appraisal and real estate settlement services because there are numerous local providers and BofA and Countrywide don't control a significant market share. There has been speculation that mounting losses in Countrywide's loan portfolio will lead BofA to l...