foreclosures and short sales accounted for 43 percent of residential sales last year
shadow inventories at record levels
housing prices, inflation adjusted, not even remotely back to last decade's highs
just because there's a recovery going on doesn't mean things are even close to being fixed
and FYI, their NIW is very strong -- the loses are lingering from all the aformentioned issues
who cares if speculative traders are coming in for a short term bounce because in the end MTG will be seized and shut down.
Dec-end prelim combined ops risk-to-capital ratio at 47.8 to 1
* Expects risk ratio to rise further
The preliminary risk-to-capital ratio at MGIC's combined insurance operations was 47.8 to 1 as of Dec. 31. Mortgage insurance regulators commonly allow for a maximum risk-to-capital ratio of 25 to 1.
The mortgage insurer said it expects its risk to rise above the Dec. 31 level in 2013.
The soaring risk ratio is a cause for concern. Triad Guaranty Insurance Corp, which stopped selling new mortgage insurance in 2008, had a risk ratio of 42.7 to 1.
PMI Group Inc had a risk ratio of 58 to 1 before regulators shut the insurer down in 2011.
MGIC's primary regulator uses the minimum policyholder position to gauge an insurer's strength. MGIC came up short on that measure as well.
Its minimum policyholder position (MPP) was $640 million below the required amount of $1.2 billion at the end of the year.
The policyholder position deficit was $344 million below the minimum requirement at the end of September.
Radian, whose profits on new insurance are increasingly offsetting legacy losses, expects to return to operating profitability in 2013.
MGIC, on the other hand, has said it is unable to project a return to profitability in the near term.