Marginal Revolutions

Bank of America Home Loans is a financial and marketing service company and is fully owned by the Bank of America franchise. It was formally known as Countrywide Financial. The name change happened in 2009. This company is made up of mortgage banking, banking, capital markets, and global operations.

The takeover of Countrywide financial now known as Bank of America Home Loans happened in 2008. Bank of America agreed to buy Countrywide for $4 billion dollars. The deal became one of the most noted deals in the housing crisis. At one point in time Countrywide was the largest mortgage lender.

Countrywide was not without its controversies during its time. In 2003 it faced a class action lawsuit that alleged overtime violations. It was said that Countrywide would often work its employees on overtime and then would not pay them. The lawsuit was finally settled in 2005 for the sum of $30 million to 400 accounts held by executives. Many customers after the horrible hurricanes Katrina and Rita have now come forward and said that Countrywide told many customers in the area that they did not have to pay their payments while the clean up was going on. It was also told to these customers that they would not be charged late fees. Many customers now say that Countrywide forced the customers to pay the payments in a lump sum and pay the late fees. They had thirty days to pay or they would be foreclosed on. Another controversy had occurred in 2009 after the take over. The former CEO Angelo Mozilo was charged by the U.S. Securities and Exchange Commission for securities fraud and insider trading. Former COO David Sambol and former CFO Eric Sieracki were also charged for not disclosing Countrywides less than standard lending standards in the 2006 annual report.