Investors Still Concerned Over Fed Plans

In a story which has become all too familiar, Wednesday was another day where fears about when the Federal Reserve will end its buying program resulted in a stock market rout. The Dow Jones Industrial Average lost 216 points and is now below 15,000.

As for the Mortgage Industry Equity Composite, only three stocks finished above their Tuesday close: Home Loan Servicing Solutions, up 2.17%, Ellie Mae, up 1.23%, and PHH, up 0.05%.

On the negative side, MGIC Investment Corp. was down 3.5%, while competitor Radian Group was down 2.44%. Before the market opened, Radian reported a strong month of May for new insurance written and that its inventory of delinquent loans had shrunk. Astoria Financial had the second largest percentage loss on the day, off 2.5%.

Meanwhile, both Fannie Mae and Freddie Mac slipped back under $2 per share as a bipartisan group of U.S. senators is putting the final touches on a bill that would liquidate both companies. But preferred stock investor Fairholme is calling for both to be rehabilitated.