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What: Shares of mortgage insurer PMI Group
So what: Banking giant Bank of America
Now what: Looking specifically at the mortgage insurers, though the news doesn't directly involve them, the group has been in a situation similar to Fannie's and Freddie's. As home loans have soured, they've been on the hook for insurance payments and, as a result, have been scrutinizing the loans and pushing back on the banks when the paperwork on the original loans turns out to be inaccurate. Bank of America's settlement with Fannie and Freddie is no doubt encouraging to mortgage insurer investors because they hope that similar agreements could be ahead.
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