Bank of America Looks to Sell Insurance Unit Acquired With Countrywide Financial – Home Loan Liquidations May Rise
Posted on | July 22, 2010 | No Comments
The CEO of Bank of America, Brian Moynihan has made it apparent that BoA plans to sell the insurance unit that was acquired with Countrywide Financial, Balboa. Moynihan feels that Bank of America should sell Balboa “because it’s not a core activity of making mortgages and we’re continuing to fine-tune the franchise.” He made the statement on a July 16th earnings call.
Countrywide Mortgage has had a very low liquidation rate on home loans that have fallen delinquent. Approximately 3% of home loans serviced by Countrywide Financial that are at least 90 days delinquent were turned into seized property or foreclosure in the month of April. This is very low when comparing data with Wells Fargo who saw 10% of delinquent home loans addressed.
Now that Bank of America is planning to sell off the insurance unit Balboa it will likely be the case that home loan liquidations will rise. The issue at hand is that any process involving millions and possibly billions of dollars will take time. Bank of America CEO Brian Moynihan is confident the deal will be completed.
Author: Jeremy North
Tags: bank of america > bank of america countrywide > bank of america home loans > bank of america insurance > boa insurance > countrywide financial > countrywide home loans
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