Sunday, January 20, 2008

Late night mortgage thought.

I was reading today about the huge surge in Re-Fi's underway thanks to the steep drop in fixed 30-yr mortgage rates, coupled with the activist Re-Fi action that comes with cleaning up the sub-prime mess.

Consider this: Massive surge of quality mortgage generation + BB&T report of continued strength and discipline (Ranked #1 in the country for mortgage servicing by JD Power; and they refuse to sell crap mortgages -- just quality product with quality service). Could be a very, very profitable spring for BB&T.

Assuming we do, in fact, see a bottom setting up in the banking sector soon (as Kass and others have called) then I'll be looking to add to BB&T holdings while the share price is still relatively depressed. If is the key word.

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