Financial Business Reap: Nationstar & Others Move Up, Wells Fargo and Morgan Stanley In Jeopardy
Shares of specialty mortgage servicers such as Nationstar Mortgage Holdings (NYSE:NSM), Ocwen Financial Corporation (NYSE:OCN), and Walter Investment Management Corp. (AMEX:WAC) move up Wednesday from a group Buy by Compass Point because of “secular shift”. It is thought that these firms should experience ‘tremendous growth’ as banks have to offload their servicing portfolios. The firms listed above are all enjoying year-to-date gains.
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Wells Fargo & Co. (NYSE:WFC) and Morgan Stanley (NYSE:MS) have been accused by the law firm Gibbs & Bruns of failing to properly service $73 billion in residential mortgage bank securities. If the amount that the law firm obtained from Bank of America is any guide, the two banks now on the spot could lose as much as $2 billion.
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