Our hypothetical hedge fund, bought 200,000 shares of BAC in the aftermarket @ $52.70 per share. We see BAC now as the largest mortgage originator after the CFC investment.
With BAC's large balance sheet CFC can now begin to originate new loans and sell them to BAC, with BAC carrying the paper on its balance sheet as assets.
Expect to see a small pop in the homebuilders. We are monitoring for a good point to enter a position.