BusinessWeek – On a good day for homebuilder issues, shares of mortgage lenders fell on new worries about borrowers’ ability to pay.
What was good news in the market for homebuilders on Jan. 17 didn’t carry through for mortgage lenders, as investors worry that bad loans are hitting that sector. Wall Street sold mortgage bank stocks further after Indymac Bancorp (NDE) issued a profit warning on Jan. 17.
The Pasadena (Calif.)-based holding company for the savings, loan, and mortgage originator Indymac Bank said in a letter to shareholders on Jan. 16 that it expects to earn about 97¢ per share during the quarter, instead of the $1.30 to $1.40 it had announced earlier.
