The takeover by the largest US consumer bank could help save the California-based company from bankruptcy, but possible impact on jobs was not immediately detailed, observers said.

A statement from Bank of America's headquarters in Charlotte, North Carolina, said the acquisition will make it the nation's largest mortgage lender and loan service provider.

Countrywide, the subject of widespread talk about possible impending bankruptcy in recent days, "will benefit from the stability of being part of the largest and one of the most financially strong financial institutions in the United States," the bank said in the statement.

At the same time, "Bank of America will benefit from Countrywide's broader mortgage capabilities, including its extensive retail, wholesale and correspondent distribution networks," it added.

Countrywide operates more than 1,000 field offices and has a sales force of nearly 15,000. The company recorded US$408 billion in mortgage originations in 2007 and has a servicing portfolio of about US$1.5 trillion, with US$9 million loans.

Bank of America earlier bought US$2 billion of Countrywide preferred stock in August to bolster the finances of the troubled mortgage lender, which has been hard-hit by the downturns in the housing industry and the subsequent mortgage-related panic in the financial market.

In the past 12 months, Countrywide's market value fell 82 percent to US$4.5 billion, and it experienced its first quarterly loss in 25 years.

The purchase announced Friday includes Countrywide's Lender Placed insurance and other businesses, according to Bank of America.

"Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers," said Kenneth D. Lewis, the bank's chairman and CEO.

Lewis said home ownership is a fundamental pillar of the US economy and over time it will be a key area of growth for Bank of America.