Lending Stocks Participate in Broad Rally

The vast majority of mortgage-related stocks performed well on Monday as hopes for another Federal Reserve rate cut and a quick resolution of subprime credit issues drove a rally that pushed the Dow Jones industrial average to an all-time high.Some of the mortgage sector's biggest winners were mortgage insurance companies. Radian's share price rose 6.7% on the day, while Triad was up 5.8% and PMI rose 3.21%. Countrywide Financial Corp. also posted a strong gain of 5% on the day. LandAmerica Financial Group was up 5.62%. Overall, the Dow closed up 191 points, or 1.38%, to close at 14,087.55. The day began with a bad omen, as both Citigroup and UBS announced that they would take big hits related to subprime mortgage loans, but the market seems to be betting that those companies are taking their lumps now so they can put the issue behind them.