NEW YORK (TheStreet) -- Wells Fargo (WFC) and US Bancorp (USB) are among banks expected to benefit from strong quarter mortgage banking revenues, as federal stimulus and rising asset values continue to boost results.
Morgan Stanley analyst Betsy Graseck estimates mortgage revenues will rise 34% in the third quarter compared to the third quarter of 2011, though she believes it will be lower than the second quarter. She argues lower interest rates will stimulate refinancing activity. She also sees continued benefits from a government refinancing program known as HARP 2.0, as well as strong gains for banks on the sale of assets.
Graseck recommends SunTrust Banks (WFC), Wells Fargo and US Bancorp as the best way to invest in expected strong mortgage revenues since mortgage banking makes up the largest percentage of their overall revenues.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV