Thu, May 14, 2:48 PM
- While the volume of new originations with PMI was flat in Q1 from a quarter earlier, private mortgage insurers wrote just $45.24B worth, down 5.3%, according to Inside Mortgage Finance. FHA and VA loans were up by 5.5% and 6%, respectively, over the same time frame.
- The private mortgage insurers' market share dipped to 35.2%, the second-straight quarterly decline, and off from a post-crash peak of 41.1%.
- The trend over the last few years has been for the FHA to lose market share, but the program saw a surge in refis in March, suggesting January's premium cut is taking effect.
- Watching closely: Radian (RDN +0.3%), MGIC Investment (MTG +1.6%), Essent Group (ESNT +1.4%), NMI Holdings (NMIH +1%).
Fri, May 8, 8:19 AM| Comment!
Tue, Apr. 21, 7:27 AM
- Q1 net income of $133.1M or $0.32 per share vs. $60M and $0.15 one year ago.
- Net premiums written of $234.5M vs. $218M a year ago. New insurance written of $9B vs. $5.2B. Persistency of 81.6% vs. 81.1%.
- Primary insurance in force of $166.1B vs. $157.9B a year ago. Percentage of loans delinquent, excluding bulk loans, of 5.98% down from 7.92%.
- Losses incurred of $81.8M vs. $122.6M a year ago.
- Conference call at 10 ET
- Previously: MGIC Investment beats by $0.05, beats on revenue (April 21)
- MTG +1.45% premarket
Tue, Apr. 21, 7:03 AM
Mon, Apr. 20, 5:30 PM
Mon, Apr. 20, 8:31 AM
- Mortgage insurers fell post-market on Friday after the FHFA issued the final version of the Private Mortgage Insurer Eligibility Requirements that disappointed by not giving credit for any future premium income, says BTIG's Mark Palmer.
- Alongside that was the FHFA's announcement that g-fees would be kept at current levels vs. a hoped-for reduction.
- Nevertheless, with the uncertainly cloud removed, the stock's are higher in premarket action.
- MGIC Investment (NYSE:MTG) +1.9%, Radan (NYSE:RDN) +2.2%. Also taking note of the news: Genworth (NYSE:GNW), Essent Group (NYSE:ESNT), Old Republic (NYSE:ORI), and NMI Holdings (NASDAQ:NMIH)
Mon, Mar. 9, 4:29 PM
- The largest private mortgage insurer based on insurance in force with a market share of about 23%, Radian (NYSE:RDN) is particularly well-positioned to benefit from a potential upturn in the U.S. housing market, writes Mark Palmer, starting the stock at Buy with $22 price target.
- "The company’s operating results should improve as its legacy portfolio runs off, new business written post-2008 under more stringent underwriting standards becomes a larger portion of its total insured exposures, and the addition of new customers drives new insurance written."
- The $22 PT is 12x Palmer's 2017 EPS estmate of $1.85.
- For the same reasons, MGIC Investment (NYSE:MTG) is also started at Buy, and with $12 price target.
- The PT is 11.5x Palmer's 2017 EPS estimate of $1.05.
Mon, Mar. 9, 7:51 AM
Wed, Mar. 4, 3:34 PM
- "In our view, Radian's (RDN +1.1%) earnings and returns will improve over the next several years as its legacy portfolio becomes a smaller portion of its overall portfolio of risk," says MKM, initiating Radian Group (RDN +1.1%) with a Buy rating and $22 price target.
- "Since the credit crisis, the private mortgage insurance industry has become very attractive," says the team, noting home values are still on the rise, premium rates are nearly double that of pre-crisis, and required capital is up just 30-40%, even though they're likely to move higher following new FHFA rules.
- MKM also starts coverage on MGIC Investment (MTG -0.4%) with a Buy and Essent (ESNT +2.1%) with a Neutral.
- Previously: Essent Group higher after analyst upgrade (March 4)
Mon, Feb. 9, 9:06 AM
- January primary new insurance written of $2.9B vs. $1.7B a year ago. Ending primary delinquent inventory of 80,144 loans vs. 79,901 a month ago and 102,351 a year ago.
- The sequential rise in delinquencies is notable because they've been on a downward path for a number of years.
- Source: Press Release
- MTG flat premarket
Tue, Jan. 20, 7:55 AM
- Q4 net income of $74.4M or $0.19 per share vs. a loss of $1.4M (essentially $0.00 per share) one year ago. Full year net income of $251.9M vs. a loss of $49.8M a year earlier.
- Net premiums written during quarter of $227.7M vs. $204.1M a year ago. New insurance written of $9.5B vs. $6.7B. Persistency of 82.8% vs. 79.5% a year earlier.
- Percentage of loans delinquent of 6.65% vs. 8.92% a year ago. Losses incurred during quarter of $117.1M vs. $196.1M.
- Conference call at 10 ET
- MTG no trades premarket
Tue, Jan. 20, 7:05 AM
Mon, Jan. 19, 5:30 PM
Wed, Jan. 7, 1:56 PM
- The effect of the reportedly-coming 50 basis point FHA premium rate cut is more psychological than real, says BTIG's Mark Palmer, reiterating his Buy ratings on Essent Group (ESNT -9.4%) and Genworth (GNW -2.2%).
- Palmer doesn't mention Radian (RDN -5.6%) or MGIC Investment (MTG -4.7%), but they remain under pressure as well.
- Previously: Mortgage insurers tumble on report of cut in FHA premiums (Jan. 7)
Wed, Jan. 7, 10:31 AM
- Bloomberg's Jonathan Allen and Clea Benson report the president will announce a 50 basis point cut in FHA premiums to 0.85% at an event in Phoenix tomorrow.
- The private mortgage insurers have over the last couple of years enjoyed an increase in market share following boosts in FHA premiums, and are sinking today on this news.
- Radian (RDN -5.5%), MGIC (MTG -6.9%), Essent Group (ESNT -8.2%), NMI Holdings (NMIH -1.3%).
Dec. 16, 2014, 9:47 AM
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