What in the World Happened to These Private Mortgage Insurers?

In this segment from The Motley Fool's everything-financials show, Where the Money Is, analysts David Hanson and Matt Koppenheffer take a listener's question regarding private mortgage insurers like Radian, MGIC Investment, and Genworth Financial. The question is:

I've got a somewhat dated question for you regarding the housing crisis and mortgage lending industry. If I understand correctly, borrowers are required by most banks to have private mortgage insurance if their down payment is less than 20% of the sale price. I don't think it's a stretch to assume that most "subprime" loans would have been subject to this. Ever since the crisis, I've wondered what happened to the PMI companies. Shouldn't responsibility have fallen to them to remunerate the banks for the losses? Isn't that their prime responsibility?

1 great stock for the year ahead
There's a huge difference between a good stock, and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (1) | Recommend This Article (11)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 04, 2014, at 12:57 PM, BetzabethT wrote:

    Before buying a timeshare, calculate the total cost of the timeshare, including mortgage payments and expenses, like travel costs, annual maintenance fees and taxes, closing costs, broker commissions, and finance charges. Then compare these costs with the cost of renting similar accommodations with similar amenities in the same location for the same time period. And remember, a timeshare is not an investment for profit or an interest in real estate that will likely appreciate over time. And if you try to resell your timeshare, it is unlikely you will get any way near what you paid for it:

    http://www.timesharescam.com/blog/167-cancel-timeshare-mortg...

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2778448, ~/Articles/ArticleHandler.aspx, 9/22/2014 10:36:10 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement