Mortgage lenders under pressure after Fed chief signals aggressive rate hike

NMI Holdings

21/04/2022 19:18

** Shares of some mortgage lenders slip after hawkish
comments from Fed chief Jerome Powell
    ** UWM Holdings Corp  UWMC.N , loanDepot Inc  LDI.N  and NMI
Holdings Inc  NMIH.O  down nearly 0.5% each
    ** Powell said a half-point interest rate increase will be
"on the table" when U.S. central bank meets in May
    ** Fed chief said with stubbornly high inflation, "it is
appropriate to be moving a little more quickly" to wean economy
off pandemic-era life support
    ** Higher interest rates result in decline of origination
volumes and profitability for mortgage lenders
    ** YTD, UWMC has lost 35%, LDI has declined 29% and NMIH has
fallen 7%

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com;))