Here is an interesting short Q&A session with the CEO of Bank of America. He makes some interesting comments on some relevant topics being discussed in real estate circles.
Bank CEO Sees End to Housing Woes
Bank of America’s CEO Ken Lewis recently spoke with the South Florida Sun-Sentinel about the housing market. Here are some of his comments:
Q: When do you expect the nation’s housing market to improve?
A: At best, it’s a guess, but my anticipation is that by the end of the year, we’ll begin to hit a bottom. But we’re not going to see improvement for several more quarters. Prices will begin to normalize, but it will take some time and some pain.
Q: How will the mortgage industry be different now that the housing boom has ended?
A: It’ll be a much simpler world. We’re not going to see as many complex loans because there are no takers. Going forward, you’ll see more prudent lending, with borrowers having more down payments. It’ll be a more traditional environment than you’ve seen over the past five or six years.
Q: Will you allow Countrywide [which Bank of America is in the process of acquiring] to continue in the subprime business?
A: They have stopped all subprime loans and have stopped buying subprime loans from brokers. That would be the model under which we would operate.
Source: South Florida Sun-Sentinel, Paul Owers (03/04/2008)
Posted by Carter Brown
No comments yet.