Moody's said it has placed Mortgage Guaranty Insurance Corp.'s junk-grade "B2" financial strength rating and the debt ratings of its parent corporations on review for possible upgrade. The rating agency also affirmed the "Ba3" financial strength rating of MGIC Indemnity Corp. and changed its outlook to "Stable" from "Negative" as a result of the offering. EOA
Even with all of this, they had $371M in revenue for the past quarter. They've got some other expenses like debt service, operational costs, settlements, etc... but even with, say, an extra $100M in expenses on top of the $338M, they're still only a measly ~$50M away from a net profit.
Adding to that, claims are going down, cures are up, and NIW and marketshare is continuing to increase.
It's all about momentum.
In short... I would go short Apple (which is falling apart with mediocre products, a panicking CEO, and decreasing marketshare) if I were you guys... NOT this stock.
If you short at even this price (~$4.5), and it reports good news, it could go to $6 again in just a few days, an instant 50% loss for you.
thats the average for all loans, what the oP is saying is that 27,000*50k*.25 = 337.5, what the OP missed is that their investment yield in the past was much higher, now, it is under 2%, so they need to run a lower loss ratio to make up for the lost investment income.
A Barclays spokesperson said the high rating for the two rival companies MTG and Radion RDN was issued because each of these organizations have much better access than they’ve had in the past to capital needed to absorb any additions to loss reserves.