Housing Stock #3 – Capitol Federal Financial (CFFN)
Capitol Federal Financial (CFFN) offers a range of lending products including first mortgages, home improvement loans and home equity loans and lines of credit. The company is based in Kansas, serving mainly the areas around Wichita, Topeka and Kansas City.
The housing downturn has really hurt the Midwest, where land was plentiful and new homes sprouted up like weeds in the boom times a few years back. But unfortunately, these communities are now suffering from higher unemployment and that means more foreclosures and fewer qualified borrowers.
With plenty of bad debt on its books and not enough good loans to offset them, CFFN is really hurting. This stock is a sell.