Mortgage insurers and servicers took a massive beating on the HW 30 — HousingWire’s exclusive list of mortgage-related stocks — as weaker earnings caused stocks to tumble Thursday.
Generally speaking, all but three stocks on the HW 30 significantly underperformed amid weak consumer confidence data and mortgage rates hitting a three-week high.
The ringleader of the HW 30 massacre was Nationstar Mortgage Holdings (NSM), down more than 20%, or nearly $9 for the day.
The company announced in its earnings that it was selling a large portion of its lending operations to Stonegate Mortgage Thursday, ridding Nationstar of some of its wholesale and retail lending.
The sale will result in a headcount reduction of roughly 1,100 employees and a fourth quarter expense reduction of about $16 million.
Mortgage servicer Ocwen Financial (OCN) also fell on the HW 30 Thursday, down 2.04%, or $1.04 a share.
Mortgage insurer Radian Group (RDN) also released its earning, reporting a net loss of $12.7 million for the quarter, compared with a net profit of $14.3 million from the previous year.
The company wrote its second-highest quarterly volume of new insurance since its inception, fueled by a robust housing market and fewer loan default, but it’s enough to keep its stock from plummeting.
Radian underperformed Thursday, down 9.42%, or $1.25.
Fidelity National Financial (FNF) almost tumbled on Thursday, falling 1.75%, or $0.47, while First American Financial (FAF) also took a hit, dropping 1.92%, or $0.49.
On a similar note, Stewart Information Services (STC) fell Thursday, dropping 1.38%, or $0.41.
