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4-Traders Homepage  >  Equities  >  Nyse  >  Bank of America    BAC

Delayed Quote. Delayed  - 09/26 04:29:05 pm
24.875 USD   +0.46%
09/25 BANK OF AMERICA : CEO Brian Moynihan to Participate in Bank of Ameri..
09/25 BANK OF AMERICA : Thank You Letters
09/25 BANK OF AMERICA : robbery reported in LaGrange
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BofA opens debate on lowering mortgage down payments

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05/19/2017 | 01:19am CEST
A Bank Of America sign is pictured in the Manhattan borough of New York

The head of Bank of America Corp (>> Bank of America Corp), the United State's fourth-biggest mortgage lender, said on Thursday banks would be able to supply a bigger share of funding for home purchases if the standard down payment for buyers was cut to 10 percent from 20 percent.

The head of Bank of America Corp (>> Bank of America Corp), the United State's fourth-biggest mortgage lender, said on Thursday banks would be able to supply a bigger share of funding for home purchases if the standard down payment for buyers was cut to 10 percent from 20 percent.

The vast majority of mortgages are underwritten to strict standards set by the U.S. government or quasi-government entities Fannie Mae (>> Federal National Mortgage Association) and Freddie Mac (>> Federal Home Loan Mortgage Corp). While down payment requirements can vary, they offer fairly little latitude to lenders that do not want to take all the risk themselves. As a result, many prospective homebuyers who cannot come up with a 20 percent down payment are unable to get a loan.

"Our goal - going back to regulatory reform - is should you move the down payment requirement from 20 percent to 10? It wouldn't introduce that much risk but would actually help a lot of mortgages get done," Chief Executive Officer Brian Moynihan told CNBC in an interview Thursday.

Bank of America was the top U.S. mortgage lender ahead of the 2008 mortgage crisis, causing it to face greater losses, both from defaults and litigation, than any other bank. Under Moynihan, who took the helm at the start of 2010, the bank has tightened lending standards and executives regularly use the motto "responsible growth" in public speeches.

Bank of America has ceded market share partly because, unlike peers Wells Fargo (>> Wells Fargo & Co) and JPMorgan Chase & Co (>> JPMorgan Chase & Co.), it does not acquire mortgages from other lenders.

(Reporting by Dan Freed and David Henry in New York; Editing by Lisa Shumaker)

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Financials ($)
Sales 2017 89 484 M
EBIT 2017 33 539 M
Net income 2017 19 501 M
Debt 2017 -
Yield 2017 1,58%
P/E ratio 2017 13,65
P/E ratio 2018 11,43
Capi. / Sales 2017 2,92x
Capi. / Sales 2018 2,82x
Capitalization 261 B
Chart BANK OF AMERICA
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Bank of America Technical Analysis Chart | BAC | US0605051046 | 4-Traders
Technical analysis trends BANK OF AMERICA
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 31
Average target price 26,7 $
Spread / Average Target 7,8%
EPS Revisions
Managers
NameTitle
Brian T. Moynihan Chairman, President & Chief Executive Officer
Catherine P. Bessant Co-COO & Chief Technology Officer
Thomas Kell Montag Co-Chief Operating Officer
Paul M. Donofrio Chief Financial Officer
Thomas J. May Independent Director
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