Hudson City Bancorp’s common stock price closed over 2% lower on Friday on heavy trading volume, and it was the largest decliner by percentage on the Mortgage Industry Equity Composite.
M&T Bank Corp., which has an agreement to merge with Hudson City, reported lower 4Q13 profits (compared with both 3Q13 and 4Q12) in large part due to lower mortgage banking revenues.
Even though the Dow Jones Industrial Average gained 42 points on the day, 12 of the MIEC stocks closed lower than they did on Thursday. There were four gainers and Redwood Trust closed unchanged.
Technology firms CoreLogic and Ellie Mae both saw their stock prices fall by 1.7%.
Home Loan Servicing Solutions gained 0.8%. The company plans to issue $800 million of securities backed by mortgage servicer advance receivables.
The other gainers were OceanFirst Financial, Bank of Hawaii and Dime Community.