The Paragon Report has now been released, providing an analysis of the opportunities for investment in the property and casualty insurance industry as well as MGIC Investment Corporation and Radian Group , Inc. equity research.
Earlier in September, the acting director of the Federal Housing Finance Agency (FHFA), Edward DeMarco, gave a number of different explanations of the ways in which there would be changes to the conservatorship of the Government Sponsored Enterprises (GSEs).
Some of those changes included a new method for decreasing the exposure to long-term risk by seeking to share the risk of Fannie and Freddie with the private market by way of coverage by mortgage insurance.
This type of alteration will certainly give the private mortgage insurance sector a powerful boost. In response, the Mortgage Insurance Companies of American (MICA) has stated that it embraces the chance to take such an integral part in housing finance, for a return to mortgage loans with a low down payment that have been cautiously underwritten, so that lower income families and first time homebuyers will have their needs met once more.
The group went on to say that “private mortgage insurers provide deeper coverage to protect the U.S. taxpayer.”
The Paragon Report is offering investors a strong head start in the process of due diligence by offering daily trading ideas and the consolidation of the available public information.
The most recent MICA statistics have shown that in July 2011, private mortgage insurers wrote $4.9 billion in new business, despite the fact that many of the participants in the industry had been battling with dropping stock prices and an uncertain liquidity level future. The MCIA maintains a strong outlook regardless of some potential headwinds.