Bank of America
Nearly all of the recent U.S. economic reports have underlined a steady recovery of home prices, which can lift all boats among the large residential mortgage lenders, including the "big four" U.S. banks. Bank of America, of course, is the most highly leveraged to a housing recovery, because of the company's mortgage mess mainly springing from its purchase of Countrywide Financial in 2008. Bank of America had $25.5 billion in unresolved mortgage repurchase claims as of Sept. 30. In addition to the many challenges the company will bring to investors making the claims, delinquency rates will decline, and claim balances will also decline as home prices rise. In addition to those benefits, the rising home prices will make short-sales or even outright sales of the collateral properties backing the securitized loans easier, thus cancelling some putback claims.