The chief executive officer of Bank of America Corp. said that he sees a return of investors to private-label mortgage-backed securities. He also expects the Charlotte, N.C.-based company to double its share of the mortgage market.
When asked about the likelihood of a return by investors to the private-label MBS market as Fannie Mae and Freddie Mac are wound down, BofA CEO Brian Moynihan left no doubt about his position.
“Well I think it’s not only a possibility, it’s a certainty,” Moynihan stated. “The question is, what we need for that is to get the rules straight.”
Moynihan made his comments Friday at the Brookings Institute in an interview with CNBC.
The bank chief said that he believes investor capital is out there.
“The investors want the product today,” he said. “And the question is, ‘can we get a product together to give to them?’.”
