Morgan Stanley has downgraded Countrywide Financial, the nation's largest residential originator, to "equal-weight" from "overweight."In a new research report, Morgan analyst Ken Posner notes that despite the downgrade, the investment banker "modestly" increased its price target on Countrywide to $81. At deadline time, the California-based mega-lender/servicer was trading at $68.90, down almost 4%. "With moderate upside and estimates in line with consensus, we no longer see a basis for overweighting the stock relative to the group," Mr. Posner writes. Morgan Stanley says Countrywide has increased its production of niche mortgage products and should perform adequately as long as a price war for loans does not develop. "The mortgage industry appears to be competing rationally, in line with our thesis, even as we head deeper into the refi bust," Mr. Posner says.
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The Chicago-area lender, which at first was able to get the suit quashed, agreed to end the discrimination case by paying a $105,000 fine.
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The wholesale lender filed a motion to dismiss the case, or at least to strike the class action certification in mid-October.
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Remax, the real estate brokerage and mortgage broker franchisor of Motto Mortgage, rebounded from a year ago loss in a tough news cycle for both its businesses.
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Economists cautioned that October's employment report may not provide a fully accurate representation of the economy due to recent hurricanes.
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HomeStreet and FirstSun are working to devise a new formula after the Texas Department of Banking and the Federal Reserve declined to approve their merger application.
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Former Treasury Secretary Steven Mnuchin and his investment firm Liberty Strategic Capital are seeking to more than double his indirect ownership stake of Flagstar Financial — formerly New York Community Bank — to 22.9%, according to filings obtained by American Banker.
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