Executives at Bank of America's manufactured housing loan unit are reportedly considering trying to raise capital to buy it.

The bank put the nation's second-largest such lender up for sale last month and is reportedly seeking $600 million.

Industry veterans were not surprised by the report, which first appeared in a Bloomberg News story, that the bank executives were considering the move. John Wheeler, head of the bank unit, considered doing the same when Bank of America took over the unit in the Security Pacific acquisition in 1992, veterans said.

But other executives say it may be difficult for the group to raise money, because investors may be wary of jumping into such a competitive market.

Lenders are buying up dealers and manufactured home builders to have a captive market for their loans. That is making competition even fiercer.

The Bank of America unit made over $3 billion of loans last year.

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