Mortgage stocks decline for second day
After experiencing double-digit percentage declines during the Dow's dramatic 500-point plunge Thursday, mortgage stocks finished the week on a low note despite the market rallying somewhat on news of better-than-expected job numbers Friday morning. Mortgage insurers felt significant pangs as the companies, which are already dealing with uncertainty over their place in the future mortgage finance space, watched their stocks riled by Thursday's storm on Wall Street. The PMI Group (PMI), which saw its stock plunge more than 50% Thursday afternoon and another 37% Friday, ended the week with its stock price trading as low as 25 cents per share. Standard & Poor's lowered the insurer's ratings Friday. The company is dealing with several issues, including by its own admission fears that it will have to stop writing insurance policies in several states because of heavy losses that left it with inadequate capital and an excessive risk-to-capital ratio. Fellow mortgage insurer MGIC Investment Corp. (MTG) saw its stock drop about one percent Friday after experiencing a 20% decline during Thursday afternoon trading. By weekend, it was valued in the $3.18 per share range. Other mortgage insurers fared better in Friday trading. At closing, Old Republic's (ORI) stock was virtually unchanged from a day earlier, falling slightly from $9.78 on Thursday to $9.77 at close Friday afternoon. Radian Group's (RDN) stock fell 4.83% Friday, closing at $2.76 per share. The big banks also continued to face the headwinds of poor to lackluster economic news. Bank of America (BAC) saw its stock drop 7.47% Friday afternoon, closing a little over $8 per share. Wells Fargo (WFC) fell more than 2%, closing at $25.21 per share. Citigroup (C) fell almost 4% in Friday trading, while JPMorgan (JPM) fared much better falling less than one percent. Write to: Kerri Panchuk.