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Bank Of America Pricing is Countrywide Pricing

By
Mortgage and Lending with Franklin Loan Center

1/14/2008

Short Term - I have been monitoring the pricing for Courntrywide and Bank of America closely since their announcment last week.  Countrywide is notorious for being a hair more expensive with their mortgage products.  As of this morning the pricing for their 1st lien mortgages were identical.   

Long Term - Bank of America's purchase of Countrywide will certainly change the landscape of mortgage lending.  This will probably be the first in a series of acquisitions among banks. Look for more of these deals to come down the pipe when the credit markets open up and banks can borrow more money to finance their acquisitions.  The first such deal after this one will probably be an acquisition of Wamu by Chase. 

Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552
I wonder how this merger will change the availablity of mortgage money.  It may lower the number of competitors for mortgages, and hence either raise interest rates, tighten qualifying requirements, or both.  My guess is that since interest rates are going down anyway due to the market, it will mostly just help tighten qualifying requirements.
Jan 14, 2008 09:06 AM