Dennis' Mortgage Blog

The news last week that the rumor circulating for weeks is becoming reality, that Bank of America is looking to purchase Countrywide, is welcome news for consumers, the industry and this mortgage broker.

A bankruptcy filing by Countrywide, seemingly inevitable if not bailed out by a buy-out, would throw more uncertainty and negative energy into the credit markets.  This would further tighten underwriting standards and make it even more difficult to get mortgages funded for all applicants.  By selling to BofA and avoiding bankruptcy Countrywide avoids another lender "foreclosure" which could be the final straw tipping the industry into the abyss reminiscent of the S&L crisis of the 1980's.  

With BofA taking over the assets and liabilities of the company and restructuring the management and administration of Countrywide all those with mortgages funded by the number one lender in America will experience a new attitude of experience and customer service.  I am not saying that BofA has the best customer service in the industry, but I am saying it is better than Countrywide's.

Locally myself and others in our company have seen countless Good Faith Estimates provided by clients that they received from Countrywide loan officers that had us shaking our heads.  Suffice it to say when competing against Countrywide we would consistently be able to provide lower costs, lower rates and fixed rates instead of the adjustables being pushed.  With BofA taking over the originating giant I expect to see more consumers offered and approved for fixed rate mortgages through the Countrywide retail outlets than under the current Countrywide administration.

Dennis

 Monday, January 14, 2008