Bank of America Close to Buying Countrywide: WSJ

Bank of America is in advanced talks to acquire Countrywide Financial, the nation's No. 1 mortgage lender, the Wall Street Journal reported.

Two people familiar with the matter said a deal could occur very soon, the Journal said, but it also cautioned that any agreement could be delayed or fall apart altogether.

Countrywide shares have tumbled recently on concern it might not survive the nation's housing crisis. On Wednesday, the company said it made more loans than expected in the fourth quarter, though foreclosures among loans it services increased.

The market value of Countrywide has plunged to about $3 billion, the Journal said.

Bank of America already has a relationship with Countrywide. Last August, the bank propped up Countrywide by buying $2 billion of preferred shares convertible into a stake of about 16% in the lender.

Since then, Countrywide’s default problems have continued to grow, sparking speculation that the company could face bankruptcy. Countrywide was forced to deny earlier this week that it planned to file for bankruptcy.