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The Zack Mortgages and related services the industry has felt the heat of the ebb tide of mortgage deals. To add to the woes, weak housing supply and a sharp increase in house prices are likely to limit assembly volumes, while tighter margins compound challenges for industry players. Regulatory risks such as any change of supervision or the existence of Freddie mac FMCC could limit the origination capacity of industry players and reduce revenues from loan origination and management fees.
Nonetheless, expectations of increased demand for housing due to an improving labor market and growing consumer spending should help mortgage-related stocks generate higher returns in the near future. This, combined with the diversity of the portfolio and technological improvements, should Walker & Dunlop, Inc. DEO, Ellington Financial LLC EFC and Velocity Financial, Inc. LEVEL afloat.
Technological IPOs with huge profit potential: Last year, major IPOs jumped 299% in the first two months. With record amounts of cash flowing in IPOs and a record stock market, this year could be even more lucrative.
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