Cramer Talks Mortgage Lenders Closing Shop (LEH, WFC, WB, BAC)

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On today’s STOP TRADING on CNBC, Jim Cramer said that the Lehman (NYSE:LEH) exit from the mortgage business is a positive because this wasn’t making money.  He’d be a buyer on that news.

Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), and Wachovia (NYSE:WB) get it and they will be able to gouge down the road after all the mortgage players have imploded.  It is bad for home owners, but great for these guys.  The sentiment has changed since last Friday and the closures in the mortgage operations are actually a good shakeout.

These things hurt the homebuilders, but that is no surprise.

Jon C. Ogg
August 22, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.