Bank of America Corp. has transferred Countrywide Financial Corp.'s debt to an indirect unit owned by the Charlotte company, and it remains unclear whether B of A will back the commitments.
Countrywide said in a Tuesday filing with the Securities and Exchange Commission that Red Oak Merger Corp., an entity formed and owned by B of A as part of the $2.5 billion Countrywide purchase, assumed all of the Calabasas, Calif., mortgage company's obligations in conjunction with the July 1 sale.
The filing did not discuss the $1.74 trillion-asset Charlotte company's long-term plans for the debt. Red Oak was subsequently renamed Countrywide Financial Corp., the filing said.
A Bank of America spokesman said the company had nothing to add to the filing.
The status of Countrywide's debt has been unresolved since B of A's disclosure in a May SEC filing concerning the deal that it could give "no assurance" that it would back about $38 billion of outstanding debt.
Tuesday's filing also said that the old Countrywide had repaid about $11.5 billion of outstanding borrowings to creditors, addressing its bank credit facilities. The new Countrywide, meanwhile, transferred assets including residential mortgage loans, servicing business, asset-backed securities, and mortgage-backed securities to other B of A units in exchange for $31.29 billion in cash.
