Countrywide Name Goes Away

0

As expected, Bank of America Corp. on Monday officially dropped the Countrywide Home Loans name from its Calabasas mortgage and home equity lending operations, which it acquired last year after Countrywide collapsed during the subprime loan crisis.

The unit now will be called Bank of America Home Loans, said the Charlotte, N.C.-based banking giant, which has spent the past several months merging its own lending operations with those of Countrywide. Rebranding is now underway at former Countrywide locations around the country.

B of A also announced new tools to help borrowers better understand the loan documents they are signing, including a so-called “Clarity Commitment” It is a single-page summary of interest rates, terms and other loan details in plain language.

Lack of transparency was a frequent criticism levied against Countrywide and other subprime and Alt-A lenders by borrowers who ended up defaulting on their loans.

The new Bank of America Home Loans division will continue to be based in Calabasas. Bank of America agreed to acquire Countrywide in January 2008 in an all-stock deal valued at $2.5 billion when the deal closed July 1.

No posts to display