See how bad it is, CFC originations fell 44% in September. Guess IMBs numbers are worse, at least worse than those ones they put into their guidance...
AP
Sector Snap: Mortgage Lenders
Monday October 15, 12:49 pm ET
Mortgage Cos. Shares Fall Amid Continued Worries Over Volume and Down Day for Broader Market
NEW YORK (AP) -- Shares of mortgage companies retreated Monday as the industry continued struggling with declining origination volume and rising delinquencies and defaults.
Shares of Countrywide Financial Corp. -- which last week said its September origination volume fell 44 percent to $21.22 billion -- tumbled 53 cents, or 3 percent, to $18.19. Countrywide shares have traded between $15 and $45.26 in the past 12 months.
Shares of IndyMac Bancorp Inc., which like Countrywide is primarily a mortgage lender that has a growing banking operation, fell 61 cents, or 3.1 percent, to $18.17. IndyMac shares have traded between $16.86 and $48.14 during the past year.
Both IndyMac and Countrywide have been shifting their origination strategy to draw on bank assets to originate new loans rather than trying to sell loans in the investor market, which has all but disappeared due to rising delinquencies and defaults.
Stock markets declined Monday as well, which could be contributing to the decline. The Dow Jones Industrial Average fell 121 points to 13,971. The broader Standard & Poor's 500 fell 12 points to 1,550.
Even shares of Annaly Mortgage Management Inc., which received an upgrade to "Buy" from "Neutral" from UBS could not shake the down day. UBS analyst Omotayo Okusanya upgraded the real estate investment trust and raised the price target to $18 from $15, citing the interest rate cut by the Federal Reserve Board and proceeds from the issuance of 62 million shares of stock that the company can use to instantly grow its portfolio.
Shares of Annaly fell 24 cents to $15.61.
Elsewhere among mortgage lenders, shares of both government-sponsored entities Freddie Mac and Fannie Mae declined.
Fannie Mae shares fell $1.50 to $64.54.
Shares of Freddie Mac fell $1.44 to $59.19. |
