The stock of Wachovia Corp. was been downgraded from Buy to Neutral by Merrill Lynch.Merrill Lynch analyst E. Najarian said the Wall Street firm has "reassessed" its view since the acquisition announcement last year regarding Golden West Financial Corp. and now sees more earnings-per-share risk. "As the mortgage cycle slows, investors are likely to remain concerned about the EPS risk of [Golden West's] two-dimensional business mix (mainly option ARMs and CDs)," the analyst said. The Golden West deal and "the realization that Wachovia may, over time, pursue more large deals" are likely to keep Wachovia at one of the lowest price/earnings ratios among banks, Merrill said. Therefore, Wachovia deserves to trade at "about a 10% discount to our large regional bank group, which implies fair value of $56-$57," the analyst opined.
-
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
41m ago -
In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
1h ago -
The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
8h ago -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
9h ago -
But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
10h ago -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18