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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (48461)	12/30/2005 12:51:33 PM
From: loantech	Read Replies (1) \| Respond to of 110194

Maybe it means more piggy back loans or subprime neither of which require MI.

To: russwinter who wrote (48461)	12/30/2005 1:28:07 PM
From: Ramsey Su	Respond to of 110194

Russ, in the business of mortgage insurance, declining applications is not necessary a bad thing. In fact, it is often considered good. Insurance in force is what makes money. The measurement is called persistency. Year 1 of a policy usually involves a lot of cost such as underwriting and commissions. Year 2 and 3 of a policy are usually the higher risk years because that is when defaults usually occur. The longer a policy stays in force after that, it amounts to free money. The perfect storm would be a drop in the Primary Insurance in Force, a rise in Primary Insurance Defaults and a drop in Cure Ratio. Ramsey