The mortgage insurers are all up today. MGIC Investment, PMI Group , Radian Group , Ambac , and MBIA. Traders tell me this is because insurers are increasingly confident they will be able to put-back private mortgage insurance claims against the big banks.
Why? Insurers have lost big in the last two years on losses on no-doc, low-doc and all sorts of other loan types.
NOW we have loan officers coming out admitting they were not doing due diligence. This creates precedence for mortgage insurers to put the losses they have had back to the banks.
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