Posted Mon Apr 27, 11:47 am ET
|BofA Loses the Countrywide Tag || |
Posted By: Aditi Samajpati
Bank of America Corp. (BAC) formally dropped the Countrywide name from its mortgage operations on Monday after acquiring the troubled home lender last year.
The Charlotte-based company is now renaming its mortgage and home equity lending operations as Bank of America Home Loans, hoping to put behind a past tarnished by risky subprime lending, a series of lawsuits and an FBI investigation. Countrywide, which emerged as the largest U.S. mortgage lender before property prices slumped to a historic low, has often been held responsible for spawning the credit crisis through its business practices.
As part of the new changes, Bank of America would offer customers a one-page loan summary in simple language to explain one’s mortgage commitments, including interest rates, monthly payments and payment terms.
Shares of the company were nearly flat at $9.11 in morning trade on the New York Stock Exchange