Bank of America will be buying Countrywide for 4 billion dollars in stock! The sale is supposed to close in the 3rd quarter of 2008. This will help to rescue the biggest mortgage lender in our country. I believe this is going to help the housing market in the long run.
If Countrywide was to fail, it would be a huge blow to Fannie Mae and Freddie Mac, which are government sponsored mortgage companies. These two companies are major purchasers of Countrywide’s loans.