BofA Says Bid to Buy Countrywide is as Planned

NEW YORK -- Despite doubts swirling around Countrywide Financial Corp., Bank of America Corp. isn't trying to slip out of or renegotiate its $4.1 billion acquisition of the troubled mortgage lender, say people familiar with the thinking of the bank's top managers, The Wall Street Journal reported Tuesday.

Uncertainty about the acquisition has intensified as Countrywide's performance continues to weaken and amid a recent disclosure that the Justice Department is scrutinizing the business practices of the U.S.'s largest home lender by volume, the paper reported.

The Charlotte, N.C., bank confirmed Monday that it has stepped up its scrutiny of Countrywide's finances and underwriting practices for some loans. But a person familiar with the situation said while it is impossible to predict what might be found in the due-diligence process, the bank isn't currently trying to build a case for a lower purchase price, the paper reported.

-- NYSSCPA.org News Staff

Posted on 5/6/08