Bad Loans Hit Housing Lenders

On a good day for homebuilder issues, shares of mortgage lenders fell on new worries about borrowers' ability to pay

What was good news in the market for homebuilders on Jan. 17 didn't carry through for mortgage lenders, as investors worry that bad loans are hitting that sector. Wall Street sold mortgage bank stocks further after Indymac Bancorp (NDE) issued a profit warning on Jan. 17.

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