Ellie Mae Closes Lower as Investors Anticipated Weak Earnings

Ellie Mae, which released its 3Q13 results after the market closed, was the worst performer in the Mortgage Industry Equity Composite on Thursday.

The company closed down 3.44% as investors anticipated a disappointing report. In early after-hours trading, the stock price has declined an additional 19%.

KB Home had the second largest percentage loss, 2.97%, followed by PHH, down 2.55%.

The only MIEC stocks to close higher when compared with Wednesday are Fidelity National Financial, up 1.04%, and CoreLogic, up 0.64%. Redwood Trust closed unchanged.

Fannie Mae and Freddie Mac both closed up nearly 6% after Moody’s issued a report stating the two should have strong net income for 3Q13 and their cumulative dividends paid to the U.S. Treasury should exceed the amount of bailout money received.

The government should be in the black on its investment in the GSEs in the next quarter, Moody’s predicts.

“It's nice when investments from Washington pay off just like it's nice when agency mortgages pay off in time,” says Garth Graham, who heads Stratmor Group’s marketing strategy and execution practice.