Bank of America CEO, Brian Moynihan , said on Tuesday at the 2011 National Association of Attorneys General conference that homeowners need to look elsewhere for long-term investments rather than their home due to slow growth in population in certain areas.
“It’s sobering to think, but some people shouldn’t be thinking of (their home) as an asset. They should be thinking of it as a great place to live.”
Mr. Moynihan cited the situation of an Ohio customer who complained that his 100-year-old home was valued at $50,000. Mr. Moynihan said it would be valued as “some multiples of that figure” if located elsewhere, but due to population levels that have remained unchanged, the demand for homes in that state are low, which in turn drives down home prices.
Joe Rauch reported many attorneys general attended and are in the process of negotiating with BofA and other lenders about a settlement to allegations that the industry cut corners on foreclosures.