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Florida sues Countrywide

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Third state files suit against Countrywide as BofA merger closes Bank of America Corp. said today that it completed its purchase of Countrywide Financial Corp. and that the combined companies will offer more conservative loan products and engage in workouts or loan modifications with 265,000 troubled borrowers in the next two years. While Countrywide was known for making risky loans during the housing boom, in a regulatory filing Bank of America said the combined companies will no longer offer some types of nontraditional mortgages, including option-ARM (adjustable-rate mortgage) loans, and will curtail others, such as low-documentation loans. The combined loss mitigation staffs of the two companies will be maintained at 3,900 employees for at least a year, with the goal of conducting workouts or loan modifications on $40 billion in mortgages in the next two years. Bank of America's lawyers will also be busy handling the fallout from the housing bust. The Florida attorn...