In recent news, publicly traded mortgage lenders have seen over $6 billion in value disappear in just over a week. This could be the worst downturn they have faced since the 2008 financial crisis. The cause of this downturn is believed to be the Federal Deposit Insurance Corporation's (FDIC) recent action, which removed the idea of a deposit bank run, but has caused an investor bank run.
For those looking for safe havens from tough markets, safe investments that offer lower risk than stocks are worth considering. These investments, such as cash equivalents, are highly liquid investment securities that can be converted to cash easily and are found on a company's balance sheet. While these investments aren't for everyone, they could offer big payouts to those who invest in them.
It's important to note that investing in stocks still comes with risk, and it's important to choose a reputable stock broker. Our shortlist of the best stock brokers hand-picked by our experts can help you learn about the top trading platforms and get access to ETFs.
If you're interested in investing in mortgage lenders, it's important to be aware of the risk. While there are potential rewards, the recent downturn has shown that there are also significant risk involved. It's important to do your research and consult with a financial advisor before making any investment decisions.
One publicly traded mortgage lender, Firm Capital Mortgage Investment Corporation (TSX: FC), has confirmed that they are still operational and continuing to operate in a prudent and conservative manner. The corporation has recently announced that they will be increasing their dividend, which could be a positive sign for investors.
It's also worth noting that SIPC coverage insures people for up to $500,000 in cash and securities per account. This insurance can protect investors in case of a brokerage firm's failure.
The recent downturn in mortgage lenders' stocks has had an impact on the city of Lakeland. The city had a naming rights deal with one mortgage lender, which would have brought in $1.25 million over the next five years. However, due to the downturn, the deal has been renegotiated, with the city now set to receive a $500,000 increase.
Overall, investing in mortgage lenders can be a risk proposition. While there are potential rewards, recent events have shown that there are also significant risk involved. It's important to do your research and consult with a financial advisor before making any investment decisions.