Analyzing Two Mortgage Service Plays

I hope everyone had a wonderful Fourth of July holiday. This week, this column has highlighted stocks and sectors that should do well in the second half of the year, even in an environment of rising interest rates. We will profile today a pair of mortgage servicers that have had a very strong 2013, but have pulled back recently as interest rates have risen.

The mortgage servicing industry is being buoyed greatly by some of the financial regulations that are being implemented on the "too big to fail" banks. One of the consequences of Dodd-Frank is that is has given banks the incentive to unload their mortgage servicer rights as new rules force banks to hold more capital against MSRs. Lenders from Wells Fargo (WFC), Bank of America (BAC) and others  have been sellers of these rights over the last year....332 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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