The main impact of the settlement on the housing market will come from the new guidelines clarifying best practices for servicing delinquent loans. This should mean the foreclosure process should start to speed up again. We look for prices to fall 7% from 3Q11. We forecast that the real recovery will start in 2014, and the bounce, when it comes, could be strong.
Bank of America/Merrill Lynch Morning Market Memo February 16, 2012
