Mortgage Stocks Give Brighter Signals By TheStreet.com Ratings Staff About this article: The sector known as "thrifts and mortgages" covers financial institutions that provide mortgages and mortgage-related services. The major segments are: thrift banks, which accept deposits and invest them; and mortgage banks, which concentrate on issuing and servicing mortgage loans. There are two unique competitors: Fannie Mae and Freddie Mac , both sponsored by the U.S. government and regulated by the Office of Federal Housing Enterprise Oversight (OFHEO). The mortgage market is cyclical and highly competitive. The level and volatility of interest rates significantly affects the profitability of the financial institutions and the industry at large. In recent years, thrift and mortgage finance banks experienced robust growth due to low interest rates and a buoyant housing market. Refinancing activity by homeowners and an expansion of loan volume -- particularly subprime mortgage lending -- also skyrocketed. Mortgage debt outstanding grew 9.2% in 2007 to $14.56 trillion even as industry conditions... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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