Mortgage Stocks (Mostly) Clobbered Since 2008

Since the housing bust began in earnest in 2008, mortgage related stocks, for the most part, have hemorrhaged in price, according to an analysis conducted by National Mortgage News.

Leading the ‘dogs of the mortgage industry’ is MGIC Investment Group, the nation’s largest mortgage insurer, which has fallen in value by 97% since 2008. Another poor performer is Bank of America whose share price now stands at $8, a 82% decline from four years ago.

Other laggards include Genworth Financial (-80%), Fortress Investment Group (-78%), and Old Republic (-50%). Genworth and Old Republic are both in the mortgage insurance space but have other businesses as well.  

Since the bust, two mortgage insurance firms have closed for business: Triad Guaranty and The PMI Group, both of which are in liquidation mode, their shareholders wiped out.

However, at least one mortgage-related firm has thrived: Ocwen Financial, a specialty servicer whose share price has risen five-fold to $25.73.

Ocwen has made a solid business out of servicing and subservicing troubled mortgages for itself and third parties.