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