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Mortgage insurers tumble as competition grows

  • We "anticipate increased competition in our industry from new and existing mortgage insurance companies," says Radian (RDN -6.2%) CEO S.A. Ibrahim. "Competitors recently reduced their borrower-paid mortgage insurance premiums by 5 basis points, which we promptly matched.”
  • Radian's Q3 results
  • Backed by heavyweights Soros, Goldman, and JPMorgan, Essent Group (ESNT -0.6%) came public last week, while NMI Holdings - backed by Carlyle, Kyle Bass, and BlueMountain - also contemplates an IPO.
  • Others taking a hit today: MGIC Investment (MTG -3.8%), and Genworth (GNW -2.2%)
Comments (2)
  • King Rat
    , contributor
    Comments (567) | Send Message
     
    "Competitors recently reduced their borrower-paid mortgage insurance premiums by 5 basis points, which we promptly matched.”

     

    That sounds pretty frog on close to price fixing, no? Even if that's what the company did, they should let a non-C level officer say that. Why? Because even if they had no intention to do something wrong, they are inviting an inquiry and this can be used against the CEO.
    7 Nov 2013, 12:12 PM Reply Like
  • Hapsam
    , contributor
    Comments (9) | Send Message
     
    I don't think you can make a price fixing case when prices are moving down to match competition.
    9 Nov 2013, 01:03 PM Reply Like
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