[Benzgirl]

Originally Posted by texas*princess

http://money.cnn.com/2008/03/08/news...ion=2008030810



It looks like Bank of America is getting more than they bargained for when they acquired Countrywide ... I remember hearing about that deal and thinking "WTF? Why would they want Countryside of all lenders?"

BofA didn't really have a choice when they acquired Countrywide. They already had a majority interest at stake and either had to jump in to bail them out, and hopefully minimize losses or take a nosedive on their current losses. Strange as it sounds, BofA made the right choice.

The whole sub-prime mess is a shame. Back in the 90s when banks (not mortgage companies) began doing Sub-Prime, they did it right. They knew when a deal was bad and they didn't try to cover up future mistakes by charging exorbitant interest rates. Sub Prime went south when people got greedy.

I'll get off my soap-box and be glad that I work for a lender that only does A Paper.