Just a couple days after receiving an email from Countrywide’s retail division rejecting the bankruptcy rumor, today I received another email, this time from Countrywide’s wholesale division with the following announcement:
Over the last four decades, Countrywide has enabled approximately 20 million borrowers to achieve the dream of homeownership. In order to enhance what we have worked so hard to build over the years, Countrywide has taken a decisive step to ensure our continued industry leadership. Today, we announced that Bank of America, which has been an important financial partner of Countrywide for many years, will be acquiring our Company. BofA is one of the largest and most influential financial institutions in the United States and internationally, and we firmly believe that the combination of Countrywide and BofA will create the most powerful mortgage franchise in the world.
As you will see in the below press release announcing this transaction, BofA has announced that it plans to operate Countrywide separately under the Countrywide brand, with integration occurring no sooner than 2009. We are confident that both our servicing and origination businesses, as well as other aspects of our operations will be substantially enhanced as a result of this transaction. Notable, in statements from BofA today, is the mention of the Wholesale distribution network.
Bank of America Agrees to Purchase Countrywide Financial Corp.
Please know that Countrywide deeply appreciates our partnership with you — past, present and future.
For nearly 40 years, we have focused on real estate finance and have helped millions of Americans realize the dream of homeownership. Thank you for continuing to choose Countrywide. Your partnership is invaluable, and we look forward to continuing to play a critical role in your long-term growth and success.
Todd A. Dal Porto
Senior Managing Director and President
Countrywide®, America’s Wholesale Lender®
Since last year I have learn that when a mortgage lender publicly denies a rumor, within the same week that mortgage lenders will either close their doors (First Magnus Financial and SCME Mortgage Bankers) or they will be purched by another lender.