UPDATE: Wells Fargo Securities Downgrades Walter Investment Management Corp. to Market Perform on Potential Negative Factors Ahead

In a report published Friday, Wells Fargo Securities analyst Joel Houck downgraded the rating on

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.