by Calculated Risk on 3/20/2007 10:29:00 AM

In a research note this morning, Bank of America Securities analyst Daniel Oppenheim wrote that mortgage lending problems go "well beyond subprime" are "likely to cut 15% of demand" for New Homes.

"Our view is that the excess inventory of homes for sale (the primary issue) and the reduced demand from tighter lending will lead to lower prices and likely exacerbate mortgage delinquencies and foreclosures," wrote Oppenheim.

See MarketWatch: Stricter loans seen draining new-home demand for more.

Meanwhile, MarketWatch reports that Citigroup remains bullish: Bullish home-builder analyst sticking to guns

One of most consistently bullish Wall Street analysts covering home builders during the housing downturn argues that the hand-wringing over the subprime-mortgage market and its potential impact on the already beaten-down group may be exaggerated.

"The threat from the subprime issue on home builders is obviously large, but somewhat indirect," wrote Citigroup analyst Stephen Kim in a research note this weekend. "It is also widely discussed and prone to hyperbole."