UPDATE: Wells Fargo Downgrades Walter Investment Management on Potential Negative Factors Ahead

In a report published Friday, Wells Fargo Securities analyst Joel Houck downgraded the rating on Walter Investment Management Corp. (NYSE: WAC) from Outperform to Market Perform.

In the report, Wells Fargo Securities noted, “We are downgrading shares of WAC from Outperform to Market Perform. Our downgrade to a Market Perform rating is based on the following: (1) potential impact of rising primary mortgage rates on WAC's origination and HARP business, and the (2) upcoming departure of CFO and COO Charles Cauthen, which could represent a potential distraction for the company. Based on these factors, we believe that the near-term upside in shares remains capped. We are lowering our 2013 and 2014 estimates to $8.67 and $5.35 from $8.90 and $6.10 respectively. We are lowering our valuation range to $35-40 from $43-49.”

Walter Investment Management Corp. closed on Thursday at $39.82.