Bank of America Corp. CEO Brian Moynihan   said the U.S. housing market will "bump along the bottom" in 2011, according to a Bloomberg report.

The BofA CEO said that housing will not play as big a part of the U.S. economy and he predicted that it will take another 12 to 24 months to work through the foreclosure issue.

"There is nothing being said here that is new information, but the theme is important," said Jesse Litvak a mortgage trader at Jefferies & Co. in emailed market commentary.

"Non-agency RMBS is going to continue to spin off a lot of nice cashflow and as we 'bump along the bottom' we probably get marginally higher severities," Litvak said. "However, I still think it's going to end up being better than what most people are using for current assumptions."

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