NEW YORK, NY--(Marketwire - Nov 2, 2012) - Mortgage insurers have experienced a resurgence in 2012 as the U.S. housing market has continued its steady recovery. Recent data from the Commerce Department has shown that home sales in the U.S. are at its fastest annual pace in over two years. Five Star Equities examines the outlook for companies in the Property & Casualty Insurance Industry and provides equity research on MGIC Investment Corp. (
"All the things that were really holding back housing are finally starting to lift," said Guy Berger, a U.S. economist at RBS Securities Inc. "It really is tough to find any bad signs here. Inventories are very, very lean. Assuming the economy remains on track, housing should continue to improve for the rest of the year and into 2013."
Mortgage guarantors have also received a lift from a preliminary deal between MGIC Investment and Freddie Mac resolving a coverage dispute, which would have prevented the insurer from backing some loans. As was the case with MGIC, soured home loans have caused some insurers to breach the 25-to-1 ratio of risk relative to capital preventing them from selling new coverage.
Five Star Equities releases regular market updates on the Property & Casualty Insurance Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.
Under the agreement MGIC will make payments to Freddie Mac over the next four years. "While there can be no guaranty the open matters can be successfully resolved, I am hopeful we will continue to make progress," CEO Curt Culver said in a statement. For the first half of the year the company had recorded a net loss of $293.4 million. The company is scheduled to release third quarter results on November 9, 2012.
Radian Group is a credit enhancement company with a focus on domestic, first-lien residential mortgage insurance. Shares of the company jumped sharply after reporting a profit for the first time in 2012. For the third quarter of 2012 Radian reported a net income of $14.3 million, or 11 cents per share, analysts had estimated a loss of $0.59 per share according to FactSet.
Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
- Investment & Company Information
- Freddie Mac
Five Star Equities