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Lehman Brothers Downgraded Countrywide, IndyMac, Washington Mutual

October 22, 2007 8:49 AM EDT
CFC Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Lehman Brothers downgraded the mortgage finance sector from Neutral to Negative, saying the sector does not reflect the worst of their problems. The firm said loan losses will likely get larger.

In the mortgage finance sector, Lehman downgraded Countrywide (NYSE: CFC) and and IndyMac Bancorp (NYSE: IMB) from Equal Weight to Undrerwight. The firm downgraded Washington Mutual (NYSE: WM) from Overweight to Equal Weight.

The firm also assigned an Underweight rating to mortgage insurers MGIC Investment Corp (NYSE: MTG) and Radian Group (NYSE: RDN) and downgraded PMI Group Inc. (NYSE: PMI) from Overweight to Equal Weight.

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