With the completed purchase of Countrywide, Bank of America is now the largest mortgage lender and mortgage servicer in America. The deal closed Tuesday morning with a final price tag of $2.5 million, a 37 percent discount from the original price tag.

California Attorney General Jerry Brown echoed the sentiments of his Illinois counter-part, citing lending practices that encouraged risky borrowing behavior as the key reason for filing a civil suit against Countrywide today in California court. The lawsuit also names Angelo Mozilo and President Dave Sambol in the suit.

The Federal Reserve has approved the purchase of Countrywide by Bank of America. Not surprising really - at this point the Fed will probably approve the purchase of any bank by another just to save the public from “BANK FAILURE” headlines. While the acquisition is approved there has been some rumblings that Bank of America is not quite sure whether they’ll complete the transaction; but so far all signs and sounds coming from BofA point to moving forward.

Countrywide's Debt is still worth more than analyst's opinion despite being lowered to junk level as debt.

Bank of America has indicated that it may not guarantee $38.1 billion in Countrywide's debt despite its determination to close the acquisition of CFC in the third quarter.

Countrywide announced the migration closing of 16 wholesale fulfillment centers in a consolidation move in the wholesale channel. While I wouldn’t call it winding down, they definitely are a) responding to reduced demand and b) moving to the retail-centric strategy that is kicking butt for Bank of America and surely being evangelized, driven-down by the new ownership.

Bank of America announced that it plans to work-out approximately $40 billion of loans in trouble at Countrywide as part of it’s acquisition of the failed mortgage lender.

CNN reports that Bank of America will eliminate all but the most sound mortgage products as it attempts to complete its takeover of Countrywide. Countrywide was made famous by its option ARM and other non-traditional products which have clearly back-fired. Which begs the question - why Countrywide mortgage at all?

Buys convertible preferred stock for $2 billion