Is the servicing business going out of business?
Jan 20 2016, 09:54 ET | By: Stephen Alpher, SA News Editor Contact this editor with comments or a news tip
Unbridled selling of the mortgage-related names continues in today's session.
A sampling: PennyMac (PMT -3.9%), Ocwen (OCN -12.8%), Walter Investment (WAC -1.4%), Nationstar Mortgage (NSM -4.3%), New Residential (NRZ -3.8%), Altisource Portfolio (ASPS -12.2%).
There's a general market panic going on, but there's also a plunge in interest rates which lowers the value of servicing portfolios as it makes refinancings more likely. Indeed, the MBA earlier today reported a 19% increase in mortgage refis last week.Owcen and New Residential come to mind as two with active buyback programs in place.
Depending, of course on the economy (and world happenings) IMHO we could see 1% easy by 4th quarter if 2016.
Agree. I got out ASAP Thursday morning after reading the early news about the delay ... and, the first mobile "game".
Nevertheless I plan on buying back in, but not in a hurry to do so at this time. Remember, N is also moving into theme parks along with mobile gaming so there is lots of upside.
Unless additional positive news is released which would cause me to buy sooner, I plan on buying again within the next 2 months. N has great franchise characters and will successfully launch them in theme parks and in mobile gaming -- for sure!