According to a research report published earlier today, J.P. Morgan has downgraded MDC Holdings (NYSE:

) from Neutral to Underweight, and has lowered PT from $22 to $20. In the report, J.P. Morgan commented, “ We are downgrading MDC Holdings – which we note has had the second best YTD performance in our universe, up 42% vs. our sector average of 26% (S&P: +11%) – to Underweight from Neutral, driven by our concerns regarding the company's above average exposure to a new FHA rule, which negatively impacts the first-time homebuyer segment. Specifically, we believe the FHA's new rule disqualifying borrowers with $1,000 or more in outstanding collections disproportionately impacts the more credit-challenged first-time homebuyer, which represents 50% of MDC's sales vs. our universe average of 42%, and in turn could negatively impact 15-20% of MDC's overall business, which is at the higher end of our universe range of 10-20%.” MDC Holdings closed yesterday at $25.01.