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Feature by FHA, leaving some prospective homeowners to seek private mortgage insurance instead. Patanaar adds that analysts have upgraded their opinions of mortgage insurers in recent months. More upgrades could be forthcoming—the MCGIC and Radian results both beat analyst estimates. As the private mortgage insurers gain more strength, they can start taking on more risk. But it's unlikely that they will blindly insure all of the risks they did during the bubble. A United Guaranty spokesperson pointed out that the company's corporate parent is encouraged enough about the mortgage market's performance that it is starting to purchase mortgages for investments. Legacy companies are starting to write new business, and new companies are coming into the market. Before the bubble, MGIC relied entirely on GSE analysis to determine if a loan was insurable. Then the company cut back to support housing without the Union-based mortgage insurance to rely only on its analysis. Now same risk it had before. She argued and global reinsurance operations, the company is using much of that the GSEs already have the providing us with a platform to the GSE analysis, with a few adnecessary analytical tools and participate in mortgage insurditional parameters of its own. market knowledge to transition to ance and reinsurance business The industry's recovery has this type of a business. on a worldwide basis," said resulted in the rise of new "Though you can never entirely Arch Capital CEO Constantine mortgage insurance companies. predict the future, the industry Lordanou in a statement. The first was Essent Guaranty, looks to be entering a long positive NMI Holdings will be filing for which was the first new mortgage period," Corso said. "Credit quality an IPO later this year. Due to the insurer in more than a decade is high. Housing values are recoveranticipated filing, Corso declined when it started in 2010. The ing. The economy is moving in a to discuss much of the firm's company debuted with $600 milpositive direction. It's a good combiexpectations, citing SEC regulalion in invested and committed nation for the industry. Due to the tions about pre-IPO disclosures. equity funding from a group of changes FHA has made, we are If the firm is successful with the premier investors, including Pine Receive a free subscription to MReport! market more competitive with them." offering and the mortgage Brook Road Partners, Goldman But the changes with FHA, continues to recover, expect to Sachs, JPMorgan, PartnerRe, and Fannie, and Freddie are likely see other firms enter the business, RenaissanceRe Ventures. not done. So the government's though any number of new enIn a yet-to-be-completed transacinvolvement or lack thereof tries will be limited by the capital tion announced in February, For more information on your to enter the market, contact Jason Myers at 214.525.6700 still leaves some large potential required free subscription, Bermuda-based insurer Arch unanswered questions about the according Capital Group is in the process of Jason.Myers@TheFiveStar.com. to Corso. Ellen R. Marshall, partner at Los potential effect on the health of acquiring CMG Mortgage Insurance the private mortgage insurance Angeles-based Manatt, Phelps & and the operating platform of PMI industry, Miosi admitted. Yet he's Phillips, recommends that Fannie Mortgage Insurance for about $300 optimistic: "We're very excited Mae and Freddie Mac move into million to enter the U.S. market. about our company and the the mortgage insurance business. "The new operation will comfuture of the industry." This would enable the government plement our existing European news and strategies for the evolving mortgage market themreport.com June 2013 63 43 O r i g i n at i O n a n a ly t i c S Fear Not, LeNDers evoLutioN oF risk maNagemeNt Leaders have to tow a fine line in order to remain ahead of the competition, and are resorting to new strategies and tools to ensure they are successful in their efforts. Although it may seem a herculean task, complying with the CFPB's new rules and regs shouldn't be cause for alarm. 53 76 Servicing gobbLiNg uP tHe getaways SecOn dary market moviNg Past coDePeNDeNcy With prices for vacation homes finally starting to rally, would-be buyers are packing up their bags after packing in the deals. Building a Better The GSEs once counted on the Treasury for their survival, but now that the roles have been reversed is it prudent to use them as the Treasury's shoulder to lean on? Community Homebuyers Look to Piece togetHer tHeir Dream LocaLes as tHe recovery takes sHaPe 22 | On Your Side: Mortgage Banking News, Done Better The M Report theMReport.com Origination | Servicing | Analytics | Secondary Market Experts you trust. People you know. News you want. MReport brings today's housing finance headlines into focus. You know mortgage banking, and we know you, which is why you can count on MReport to provide insight into the latest industry innovations. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage marketplace. Because the American Dream is evolving . . . are you? Subscribe now! Call 214.525.6700 or connect with us online at TheMReport.com. or