real-time news and commentary for investors
Wednesday, Oct 16
Mortgage insurers soar after MGIC results
- Radian (RDN +5.9%), Genworth (GNW +2.9%), and MGIC Investment (MTG +16.4%) following its surprisingly profitable Q3.
- The housing bust continues to fade with remaining risk in force on insurance written from 2005-2008 now at about $18B, and risk in force on insurance written since 2009 at about $16B (Q3 portfolio supplement). Delinquencies on policies written from 2005-2008 range from 9%-17%, while those on policies written since the bust are mostly less than 1%.
- LTV ratios above 97% on policies written since 2009 are nil vs. as high as 44% during the boom years.
- The earnings call continues - live on Seeking Alpha. The main theme: "Congrats on the great quarter."