From Realtor Magazine Online, Daily Real Estate News January 14, 2008
Analysts are applauding Bank of America’s $4.1 billion rescue of Countrywide Financial, saying it could give investors worldwide more confidence in the U.S. mortgage industry.
"Hopefully this is a signal that things are a little bit better," says Torsten Slok, senior economist with Deutsche Bank in New York.
The acquisition isn't expected to do much — at least right away — for the thousands of Countrywide borrowers struggling to make their mortgage payments. But consumer advocates are hopeful that Bank of America will do a better job of setting up loan modifications for struggling borrowers.
"What this demonstrates is the ability of the U.S. financial system to deal with a sizable problem in a manner that represents a relatively clean resolution," says Bert Ely, an Alexandria, Va., banking industry consultant.
Source: The Associated Press, Alan Zibel (01/11/08)
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