Monday, 04 May 2009
So it’s official now. Bank of America has purchased, acquired, taken over Countrywide Home Loans. And they say it’s illegal to have monopolies. This is pretty close. But really does it matter?
It probably does not matter. Bank of America is the recipient of billions of government bailout funds and they have been appointed to manage all of the Countrywide loans. They must have done a pretty good job with their portfolios in order to get this assignment. What does it mean to you and me?
From what I can see, it means nothing more than a name change. Letterhead changed but websites stayed the same. Correspondence with all the Countrywide reps is exactly the same. The loan products are the same. The only thing I can see has changed is the name.
Bank of America is a world bank leader. I think they have good structure and management. I believe they will navigate these though foreclosures and short sales quickly and efficiently. Already we are seeing the short sale process being streamlined.
In summary whether it’s Bank of America, Countrywide, Wells Fargo or Wachovia we all need to believe in them. Without loans and lending the world stops. The crisis is far from over, but recovery is in sight.