Mortgage Insurers’ Stock Price Down on Ibrahim Comments

Mortgage & Real Estate

Radian Groups stock price was down 8.6% on Thursday, after the mortgage insurer reported a $13 million loss for 3Q13. Investors also did not like comments made about the mortgage insurance business by CEO S.A. Ibrahim during a conference call.

The news from Radian also affected competitor MGIC Investment Corp., which had the next largest decline among Mortgage Industry Equity Composite stocks, down 6.4%.

PennyMac Mortgage Investment Trust stock price lost 3.5% even though the company reported a profit of $40 million for the quarter.

PHH, which reported a net loss of $52 million, saw its stock price decline by 3.37%.

Redwood Trust was one of the two MIEC stocks to report a gain, closing up 2.3% after reporting a $22 million profit. The other MIEC stock in the green was OceanFirst Financial.

Among industry stocks not in the MIEC which also reported earnings, Fannie Mae gained 4.78%, while Freddie Mac gained 2.71%.

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