It's no surprise that the private mortgage insurance industry is fighting hard against proposed new risk retention rules for the mortgage industry.
They are already trying to pick themselves up and dust themselves off from the near knockout punch the Federal Housing Administration (FHA) gave them, when the government mortgage insurer took over their market share while saving the housing market from complete and total bust.
The FHA became the only game in town for the less credit-worthy borrowers with lower down payments. Now, just when the private guys are trying to get back in the game, they're getting battered again.
The proposal for a "Qualified Residential Mortgage," which would be exempt from 5 percent risk retention by the banks, which of course the banks don't want to retain, requires, among many things, that the buyer put 20 percent down on the home.