The fallout from the housing crisis is disrupting the mortgage finance industry. Fortunately, investors can still find great opportunities in this sector, even in its current state. The best savings and mortgage stocks to buy now will stand the test of time and provide investors with solid returns in the future. And while it’s easy to be spooked by the recent market downturn, there are plenty of concrete investment ideas in these sub-sectors that should persist and thrive in the years to come. These are the best mortgages and savings stocks to buy now and beyond.
Walker & Dunlop (WD)
Symbol: WDFundamentals Earnings Per Share (EPS) Growth Rate: 37.4% WD is a diversified financial services company that provides a range of advisory, investment and management services to clients across the United States. The Company is engaged in various services, including commercial and residential. real estate, private equity and venture capital, alternative investments and wealth management. The company also offers specialized insurance and reinsurance products. Trends Growth potential SustainabilityThe company has an overall financial strength rating of “Strong” (A+ from S&P) and a growth potential rating of “Excellent” (A+ from S&P). On the sustainability side, the company has strong liquidity coverage and leverage measures.
Axos Financial (AX)
Ticker: AXFundamentals Earnings per share (EPS) Growth rate: 46.6% AX is engaged in the provision of real estate and mortgage loans and related management and recovery services throughout the United States. The Company’s Real Estate Lending segment engages in the origination of commercial and residential real estate mortgages. In addition, AX’s residential lending segment originates residential mortgage loans. The company also offers asset management solutions and services to third-party investors and institutions.
Radian Group (RDN)
Symbol: RDNFundamentals Earnings per share growth rate: -0.0% RDN is a residential mortgage insurance company that provides mortgage insurance to lenders and managers. The company also offers reinsurance services and investment management services. RDN was created after the financial crisis of 2008, when major mortgage insurance companies were forced to terminate their insurance on certain subprime mortgages. RDN was a joint venture between General Electric, Berkshire Hathaway and Goldman Sachs.
PennyMac Financial Services (PFSI)
Symbol: PFSIFundamentals Earnings Per Share (EPS) Growth Rate: 0.0%PFSI is a real estate investment trust that invests primarily in residential mortgages in the United States. The company’s loans are secured by single-family residential properties located in 47 states. Unlike other REITs, PFSI does not invest in the equity of rental properties. Instead, it focuses on providing mortgages to homebuyers, typically high-risk borrowers.
There is no doubt that the mortgage finance industry has evolved considerably since its last peak in 2006. The most significant change since then is that the industry has shifted towards a greater reliance on private equity funds. This is one of the biggest trends in the entire financial industry. The best way to take advantage of this growing trend is to invest in a company like Walker & Dunlop. It is one of the oldest and most respected brokerages in the country, and it is also one of the largest. As investors sift through the rubble of the post-2008 mortgage crisis and search for companies that will thrive over the long term, high-quality financial services companies like these are sure to emerge victorious.