Mortgage Lenders Rise, Chase Q3 Mortgage Originations Rise 35 Percent

Shares of mortgage finance companies were mostly higher Wednesday, after Chase said mortgage originations rose in the third quarter, and ahead of an anticipated interest rate cut by the Federal Reserve.

Chase, the U.S. consumer and commercial banking division of J.P. Morgan Chase & Co., said it originated $39.2 billion in mortgages during the quarter ending Sept. 30, up 35% from the same period a year ago. Through the first 9 months of 2007, mortgage originations are up 34% to $119 billion.

The Fed is expected to cut its target on overnight interest rates by 25 basis points to 4.5% after the conclusion of its policy setting meeting. The fed funds futures market is currently pricing in a 90% chance of a rate cut.

Countrywide Financial was up 1% at $16.10, Washington Mutual rose 0.6% to $28.27, IndyMac Bancorp gained 2.9% to $15.08 and NovaStar Financial tacked on 4% to $5.70. Thornburg Mortgage was down 0.1% at $10.17.

J.P. Morgan Chase’s stock, which is a component of the Dow industrials, rallied 1.2% to $47.10.