Sun, Dec 28, 2014, 12:36 AM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Old Republic International Corporation Message Board

  • hike_mike hike_mike Apr 29, 2007 12:34 PM Flag

    Question:-Mortgage business

    As a non-insurance guru, reading the 2006AR, could I have a comment upon my interpretation of the Mortgage business ?

    Mortgage insurance is generally for those mortagages for < 20% equity. Is it true then that when housing prices fall by more than 10% THAT is when the insurance business will be in a pricing spiral and why attention is paid for declines in house prices ? Is the mostly an accellerator of housing price decline rather than a primary risk factor to the insurers. (ie, the housing prices decline <10% and there is not much risk to the insurers as there is on average equity, but beyond that the bottom line is hurt (excluding frictional costs, which are probably about 5%)
    Hence delinquenty is not much of a problem for the insurers until that 10% threshold is reached (one could say 5%), because the principle can be recovered by foreclosure, but beyond that, it is real, and increasing.

 
ORI
14.66+0.07(+0.48%)Dec 26 4:06 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Prothena Corporation plc
NASDAQFri, Dec 26, 2014 4:00 PM EST
Rice Energy Inc.
NYSEFri, Dec 26, 2014 4:02 PM EST