In a recent Bloomberg article, Bank of America (BAC) executives said they are cautious about packaging hundreds of millions of dollars of jumbo home loans the company's Merrill Lynch unit acquired into securities.
The housing crisis is still limiting the market's revival as the company faces its delay in returning to the sell of mortgage securities.
Here's a bit from the story:
While issuance of private home-loan bonds quintupled this year to $3.5 billion and is forecast to rise by as much as nine- fold in 2013, sales still pale in comparison to their peak of more than $1 trillion before the housing market slide starting in 2006. At stake in the nascent recovery are Wall Street profits, investor returns, homebuyer borrowing costs and the role of the government in housing finance.
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