Investors Bid Down FNF as Deal Is Announced

There was some investor backlash against Fidelity National Financial as its transaction with Lender Processing Service became official on Tuesday. The stock closed down 0.57% in the day’s trading.

As the Dow Jones Industrial Average soared above 1,600 on the day because investors were once again assured regarding the Federal Reserve’s bond purchase plans, only four Mortgage Industry Equity Composite stocks ended up lower.

PennyMac had the largest percentage loss, down 4.58%, while Redwood Trust was down 4.03%. OceanFirst Financial rounded out the down stocks, off 0.07%.

Non-MIEC member LPS closed at $33.49 per share, up 1.82%; this is $0.14 over the transaction price of $33.25 per share.

Meanwhile the bulls have once again flowed towards the private mortgage insurers, as MGIC Investment Corp. gained 7.13% and Radian Group gained 2.74%.

Meanwhile, not only did Fannie Mae go above the $3 per share mark on Tuesday, it went above $4 as well, closing at $4.08 per share, up over 37%. Freddie Mac was up 33% to $3.75 per share.