Servicers, loan insurer stocks soar on Treasury's GSE report
Shares of mortgage insurers and servicers bounced as much as 13% Friday after the Treasury advocated a shift to a housing system that's predominantly supported by private sector lending. Shares of Radian Group (RDN), a private mortgage insurer, jumped 13.42% Friday, with the stock closing at $8.03 up from $7.08 a day before. Meanwhile, its main competitor, MGIC Investment Corp. (MTG), saw its stock price rise 9.6% from Thursday close of $9.17. Mortgage insurer PMI Group (PMI) saw its stock increase Friday, as well, closing up 2.77% from $3.25 a day earlier. Loan servicers and lenders' shares also rose slightly as the Treasury outlined plans that would decrease the competitive advantage Freddie Mac and Fannie Mae have held in the mortgage marketplace for some time. Shares of both Bank of America (BAC) and competitor Wells Fargo (WFC) increased about 2% Friday. Fannie and Freddie's shares, which trade over the counter as penny stocks, fared less favorably with their stock priced dropping 5.75% and 1.26%, respectively. Write to Kerri Panchuk.