The mortgage industry is undergoing significant changes. Businesses face new challenges and opportunities as the housing market continues to adapt to new lending regulations. Therefore, investors should be careful when it comes to which mortgage stocks they choose to buy at this time. Some may see this as a red flag, given that many of these companies have struggled in recent years due to changing market conditions. However, there are still great opportunities for those willing to do their research and invest wisely. There are four mortgage finance stocks you should consider investing in now if you’re looking for above-average returns with below-average risk. These four stocks are all solid picks that can help balance your portfolio while providing you with more growth opportunities than other sectors currently available in the market today.
PNC Financial Services
PNC Financial Services is one of the largest banks and mortgage lenders in the United States. The Company provides a wide variety of financial services, including commercial banking, retail banking, investment management, trust and insurance services. PNC is also one of the few financial service providers to offer comprehensive mortgage services, allowing it to take advantage of every step of the process. These services include origination, secondary market sales, and loan modification and default foreclosure services. As a result, PNC is one of the most diversified players in the mortgage industry and one of the best actions for 2019.
Synchrony Financial
Synchrony Financial, a subsidiary of Synchrony Financial, is one of the largest online lenders in the United States. The company offers a wide variety of credit products, including personal loans, credit cards, auto financing and mortgages. Although the company’s business model largely focuses on partnering with retailers to offer credit products to their customers, it’s also a great way to attract new customers while generating additional revenue. With the housing market expected to remain strong through 2019 and beyond, Synchrony is one of the best stocks for 2019.
BOK Financial
BOK Financial is one of the largest banks in the South West. The Company offers a wide variety of financial services, including commercial banking, mortgages, trust services and retail banking. BOK Financial has one of the largest portfolios of commercial real estate loans in the United States, which translates into a high level of risk. However, given that the housing market is expected to remain strong over the next few years, BOK Financial is one of the best stocks for 2019.
Discover the bank
Discover Bank is one of the five largest retail-owned banks in the United States. The company offers a wide variety of financial services, including credit cards, installment loans, personal loans, online savings accounts and mortgage services. Since the company offers so many different types of products, it is able to diversify its risks and reduce the risk of one segment of the business failing. This makes Discover Bank one of the best stocks for 2019.
Long term options
If you’re willing to take a little more risk but still want to invest in the mortgage business, there are some long-term options that might be worth looking into. One strategy is to invest in the shares of a company that specializes in buying distressed mortgages. These are usually loans where the borrower is behind on their payments or has a poor credit rating and needs to sell the property quickly. By purchasing these mortgages, the company is able to buy the loan at a discount and then sell it back to a financier at a higher rate. This is a great strategy that you can take advantage of now that many homeowners are struggling with mortgage payments.
Conclusion
The mortgage finance industry is going through a lot of changes, but there are still plenty of opportunities for investors. If you’re looking for a good stock to buy, you can’t go wrong with any of these four stocks. These companies are all well established in the industry and are poised for strong growth. So if you want to enter the bottom tier of the mortgage finance industry, these are four stocks you should keep on your radar.
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