Categorized | Commercial

Bank of America is looking to Sell Countrywide Lending Unit

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It appears that Bank of America has made the decision to remove itself from the business of buy loans originally made by smaller institutions. In another move that may indicate the overall troubled outlook of the banking giant, Bank of America Corp. has decided to sell its Countrywide Lending division. There is a potential buyer of the division lined up at this time, though if the deal were to fall through, Bank of America has made it clear that they have no intentions of keeping the division afloat.

If Bank of America were to close down the division instead of reselling it, they would cut nearly fifteen hundred jobs in the process. Analysts have been skeptical of the banking giant’s future, and believe that its hand may be forced in making this decision. The bank has officially announced that they are getting out of the low-margin business to instead focus only on loans made directly by Bank of America with its own customers.

Not many analysts are confident that Bank of America will be able to sell the Countrywide Lending unit, as the loans that it handles are generally considered to be worthless. It should come as no surprise that Bank of America is looking to sever ties with Countrywide, as it’s acquisition of the company has led to billions of dollars in losses over the past three years. With the banking giant now facing potential penalties from the United States government, it has no choice but to cut its losses in any way possible.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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