[Mouton]

I would love to know the true story of why BofA bought Countrywide.

[SeekAndFind]

RE: I would love to know the true story of why BofA bought Countrywide.

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Would you believe the reasons, Ken Lewis ( BofA CEO ) provided here :

http://seattletimes.nwsource.com/html/realestate/2013641713_realcountrywide12.html

[MeganC]

“I would love to know the true story of why BofA bought Countrywide.”

In part, it was because Countrywide was the secondary lender for an awful lot of BoA funny paper and had Countrywide gone under the paper would’ve rolled back (excuse me but the industry term is “pi$$back”) to BoA in an unmanageable landslide. By buying Countrywide BoA secured the opportunity to do a ‘hard landing’ of the bad paper as opposed to a crash.

[longtermmemmory]

BofA bought the SERVICING RIGHTS but not the actual accounts. The concept was to insulate themselves from the known fraud in countrywide HOWEVER, they act like the bought the notes outright and resold them.