| Builders aren't the only ones seeing stock prices slump | | | | fallout from the high usage of exotic mortgages over |
| from the weakening real estate market, mortgage | | | | the past few years. An increasing number of |
| lenders are seeing shares begin to sink as | | | | borrowers have chosen adjustable-rate mortgages |
| well.Countrywide Finanical has seen stock prices fall | | | | over the past few years. With these products |
| 20.9% since May 2006. Accredited Home Lenders, a | | | | beginning to reset to higher interest rates, delinquency |
| subprime lender, stock has fallen by half. Thornburg | | | | rates are beginning to see slight increases. |
| Mortgage, an adjustable rate specialist, has seen stock | | | | Delinquencies for the first quarter of 2006 were up |
| fall by almost 20%.Lenders are starting to see a | | | | 0.1% when compared to the first quarter of 2005, |
| gloomy outlook as the real estate market continues to | | | | according to the Mortgage Bankers |
| weaken. Borrowers are seeing higher prices to both | | | | Association."Borrowers are missing more of their |
| purchase and build combined with higher borrowing | | | | payments than before," said Matthew Howlett, an |
| costs. Sales of both new and existing homes were | | | | analyst at Fox-Pitt Kelton.H&R Block reportedly has |
| down 4% in July, according to the National Association | | | | set aside $61.3 million to offset potential losses from its |
| of Realtors, while the inventory of unsold homes is | | | | subsidiary, Option One Mortgage, due to delinquent |
| hitting high levels.With fewer people taking out | | | | mortgage payments.The fear of a worsening, even |
| mortgages, overall applications are down 25% for the | | | | steep, housing slump will continue to result in investors |
| year."The volume of loans is declining," said Bose | | | | continue to sell mortgage lender stock.Martin Lukac |
| George, an analysist for Keefe Bruyette & Woods. | | | | represents and a finance web-company specializing in |
| "The market expects declines for the next few years. | | | | real estate and mortgage rates. We specialize in daily |
| And that is obviously a drag on revenue and earnings, | | | | updates, mortgage news, rate predictions, mortgage |
| because lenders will have to compete more | | | | rates and more. Find low home loan mortgage interest |
| aggressively."The market is also beginning to see | | | | rates from hundreds of mortgage companies! |