From Market Watch:

The Federal Reserve said it approved Bank of America’s planned acquisition of mortgage lender Countrywide Financial late Thursday.

The Fed said Bank of America pledged to operate the combined mortgage operations under the bank’s “polices, internal controls, and other risk-management systems.”

House prices have fallen further since January, while mortgage markets and other credit markets have been severely jarred by the near collapse of Bear Stearns and downgrades of bond insurers.

That’s increased concern about whether Bank of America will complete its purchase of Countrywide at the original terms. However, the bank has repeatedly stressed that it stands behind the deal.

Many commentators urged the Fed to reject the deal, in light of lawsuits and investigations surrounding Countrywide.

Source: By Blown Mortgage http://blownmortgage.com/