Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of mortgage insurer MGIC Investment (NYSE: MTG) jumped 10% after the Obama administration announced plans to scale back Fannie Mae and Freddie Mac.

So what: If Fannie and Freddie are reformed or eliminated, it would be logical to think private mortgage insurance will take a larger role. Details are still a little murky at this point, but the news is an incremental positive for the industry and is causing many companies in the sector to rise.

Now what: Mortgage insurers have had a tough time with the increasing government involvement in the mortgage market and a growing number of foreclosures. If Fannie and Freddie are scaled back, it would no doubt be a boost, but I would like to see some details before getting too excited today. I'll stay on the sidelines for now, waiting for clarity and the eventual debate that will rage in Washington, D.C.

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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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