Specialty Mortgage Lenders Face Slowdown

BusinessWeek, January 9, 2006, lists six mortgage lenders whose businesses are in trouble. Aames Investment (AIC), HomeBanc (HMB), Impac Mortgage Holdings (IMH), MortgageIT Holdings (MHL), NetBank (NTBK) and Novastar Financial (NFI) are all on the price downside as the demand for mortgages fall and the number of mortgage defaults rise.

All six stocks are down significantly from recent highs and AIC, HMB, IMH, MHL, and NFI have double digit unsustainable dividends.

Avoid these six stocks.