The document summarizes the Post's coverage of the financial crisis from its early signs in 2004 through the present day recovery. It highlights how the Post explained issues in layman's terms, focused on data that mattered to citizens, and provided both national and local perspectives. During the crisis, it placed blame, discussed effects on markets and the global economy, and critically analyzed actions by the government and Federal Reserve. In the post-crisis period, it examined the uneven recovery and implications for workers. Throughout, the Post collaborated with other major publications to provide in-depth financial reporting.
The document provides an overview of the causes of the global economic crisis that began in 2007. It discusses how reckless and irresponsible lending practices, including low documentation loans and increasing home prices due to speculation, led to many homeowners defaulting on subprime mortgages in 2006. These defaults were bundled into mortgage-backed securities that were often given high credit ratings and sold off, obscuring the risks. A perfect storm of factors like off-balance sheet vehicles and the "wealth effect" that encouraged risky behavior ultimately caused the system to unravel.
A comparative study of Mortgage Market in both USA & BangladeshI P Abir
This document presents a comparative study of the mortgage markets in the USA and Bangladesh. It provides information on the characteristics of mortgages in each country, the top mortgage lenders, the loan processes, and types of mortgages. The document contains sections on mortgage characteristics, top lenders, the loan process, and types of mortgages for both the USA and Bangladesh.
The document discusses the mortgage and secondary mortgage markets. It defines a mortgage as a transfer of interest in property to secure a loan. The primary mortgage market involves borrowers obtaining loans from originators. The secondary market involves originators selling loans to aggregators who pool them into mortgage-backed securities sold to dealers and then investors. This process allows originators to replenish funding and make more loans. The major players in the secondary market are Fannie Mae, Freddie Mac, and Ginnie Mae.
This document provides a summary of major developments affecting the taxation of insurance companies in 2008. It describes the significant economic turmoil that year, including the collapse of major financial institutions like Bear Stearns, Lehman Brothers, and AIG. Government intervention increased through the year with billions of dollars in loans and investments provided to struggling companies. The turmoil dominated headlines and impacted many aspects of the insurance industry as well.
U.S. Lending Industry Meets Mortgage Process as a ServiceCognizant
In a challenging and changing market, mortgage process as a service, orMPaaS, can provide banks with the talent and systems to handle essen¬tial lending services, enabling them to focus on rebuilding their business through product innovation to capture market share.
This document contains a proposed bill that would allow American citizens to modify their existing home mortgages to a 4% interest rate without changing lenders. This is intended to help stimulate the economy by decreasing unemployment, preventing foreclosures and bank-owned homes, stabilizing the housing market, increasing tax revenues, and helping household budgets. The bill is supported by findings that banks are lending little due to losses on home loans, the slow job and housing market recovery since 2007, the problem of "zombie foreclosures" lingering for years in process while damaging home values, and forecasts of a continued difficult year for the mortgage industry in 2014 due to new regulations.
This document provides quotes and commentary from political and economic leaders during the 2007-2008 financial crisis and housing market collapse. It includes perspectives from Barack Obama, John McCain, Alan Greenspan, Ben Bernanke, Hank Paulson, Warren Buffett, and others on the causes of the crisis and potential policy responses. Many of the quotes acknowledge problems in the subprime mortgage market and housing but underestimate the severity and broader economic impact of the crisis as it unfolded.
The document summarizes the Post's coverage of the financial crisis from its early signs in 2004 through the present day recovery. It highlights how the Post explained issues in layman's terms, focused on data that mattered to citizens, and provided both national and local perspectives. During the crisis, it placed blame, discussed effects on markets and the global economy, and critically analyzed actions by the government and Federal Reserve. In the post-crisis period, it examined the uneven recovery and implications for workers. Throughout, the Post collaborated with other major publications to provide in-depth financial reporting.
The document provides an overview of the causes of the global economic crisis that began in 2007. It discusses how reckless and irresponsible lending practices, including low documentation loans and increasing home prices due to speculation, led to many homeowners defaulting on subprime mortgages in 2006. These defaults were bundled into mortgage-backed securities that were often given high credit ratings and sold off, obscuring the risks. A perfect storm of factors like off-balance sheet vehicles and the "wealth effect" that encouraged risky behavior ultimately caused the system to unravel.
A comparative study of Mortgage Market in both USA & BangladeshI P Abir
This document presents a comparative study of the mortgage markets in the USA and Bangladesh. It provides information on the characteristics of mortgages in each country, the top mortgage lenders, the loan processes, and types of mortgages. The document contains sections on mortgage characteristics, top lenders, the loan process, and types of mortgages for both the USA and Bangladesh.
The document discusses the mortgage and secondary mortgage markets. It defines a mortgage as a transfer of interest in property to secure a loan. The primary mortgage market involves borrowers obtaining loans from originators. The secondary market involves originators selling loans to aggregators who pool them into mortgage-backed securities sold to dealers and then investors. This process allows originators to replenish funding and make more loans. The major players in the secondary market are Fannie Mae, Freddie Mac, and Ginnie Mae.
This document provides a summary of major developments affecting the taxation of insurance companies in 2008. It describes the significant economic turmoil that year, including the collapse of major financial institutions like Bear Stearns, Lehman Brothers, and AIG. Government intervention increased through the year with billions of dollars in loans and investments provided to struggling companies. The turmoil dominated headlines and impacted many aspects of the insurance industry as well.
U.S. Lending Industry Meets Mortgage Process as a ServiceCognizant
In a challenging and changing market, mortgage process as a service, orMPaaS, can provide banks with the talent and systems to handle essen¬tial lending services, enabling them to focus on rebuilding their business through product innovation to capture market share.
This document contains a proposed bill that would allow American citizens to modify their existing home mortgages to a 4% interest rate without changing lenders. This is intended to help stimulate the economy by decreasing unemployment, preventing foreclosures and bank-owned homes, stabilizing the housing market, increasing tax revenues, and helping household budgets. The bill is supported by findings that banks are lending little due to losses on home loans, the slow job and housing market recovery since 2007, the problem of "zombie foreclosures" lingering for years in process while damaging home values, and forecasts of a continued difficult year for the mortgage industry in 2014 due to new regulations.
This document provides quotes and commentary from political and economic leaders during the 2007-2008 financial crisis and housing market collapse. It includes perspectives from Barack Obama, John McCain, Alan Greenspan, Ben Bernanke, Hank Paulson, Warren Buffett, and others on the causes of the crisis and potential policy responses. Many of the quotes acknowledge problems in the subprime mortgage market and housing but underestimate the severity and broader economic impact of the crisis as it unfolded.
This document provides a business analysis of Nationstar Mortgage Holdings, Inc. and the U.S. mortgage industry. It discusses the history of the mortgage industry and how the subprime lending crisis and housing bubble burst led to the dissolution of many mortgage lenders. This created opportunities for mortgage servicing companies to acquire servicing rights. The document also analyzes laws and regulations that impacted the industry, including those establishing programs to help homeowners, as well as trends showing non-bank servicers expanding as big banks exit the industry.
A Primer On The Mortgage Market And Mortgage Finance Mc Donaldsmullin2
This document provides a primer on the mortgage market and mortgage finance. It discusses the basics of mortgages, including the loan amount, term, repayment schedule, and interest rate. It also describes the risks to lenders, including default and market risk, and how mortgages are secured by collateral, usually the property being purchased. The primer defines key mortgage terms and concepts to aid individuals in making better mortgage decisions.
Mba 665 final project government impact on businessKelly Giambra
Nationstar Mortgage Holdings Inc. is a leading nonbank mortgage servicer that has gained market share since the 2008 financial crisis due to increased bank regulations. However, the Trump Administration now plans to deregulate the mortgage industry and dismantle regulations passed by Dodd-Frank. This could allow big banks to re-enter the market and increase competition for nonbank servicers like Nationstar. The paper analyzes how deregulation may present both opportunities and challenges for Nationstar's business model going forward.
Introducing Subprime Mortgage Crisis PowerPoint Presentation Slides. The presentation highlights the impact of the financial crisis of the year in percentages. Take the advantage of our ready-to-use PPT template to showcase fall in housing prices, unemployment, etc. during a crisis. The impact of a great recession on investment banks is also discussed in this presentation. This content-ready slide design also illustrates the significant financial bubble burst of financial years. Highlight the cost of the financial crisis and its key members. The effects of the crisis on the economy of the US can be effectively discussed using our PPT theme. Showcase how the crisis started spreading in various other parts of the country with the use of this PPT visual. Depict how CDO customers protect themselves during the recession. Explain the effect of subprime in many countries with this PPT theme. Further, describe the current scenario after a decade of a financial crisis in the US. Explain fed tapering, quantitative easing, etc. effectively by using this PPT slideshow. At last, the presentation discusses the vision, mission, and goals of the company. https://bit.ly/2PeSvsw
1) Subprime loans are loans given to borrowers who do not qualify for prime interest rates due to poor credit histories, with lenders charging higher rates to offset the increased risk.
2) Mortgage-backed securities fueled the growth of the subprime market by allowing lenders to sell mortgages to investors. However, rising default rates caused the value of these securities to drop, damaging investors and the financial institutions that held them.
3) The subprime crisis began in 2007 when falling home prices and rising interest rates caused many subprime borrowers to default on their loans, with the effects rippling through global markets.
- Freddie Mac's 2007 annual report summarizes the company's activities and financial results for the year.
- Freddie Mac faced significant challenges in 2007 due to the downturn in the housing market, including losses of $3.1 billion. However, a large portion of the losses were due to mark-to-market accounting rules rather than economic losses.
- Despite the difficulties, Freddie Mac continued its mission of providing liquidity and stability to the U.S. housing market. The company helped many families avoid foreclosure and expanded affordable housing programs.
This document summarizes a study that estimates a dynamic stochastic general equilibrium (DSGE) model to quantify the role of financial frictions, known as the financial accelerator mechanism, in U.S. business cycle fluctuations from 1973 to 2008. The model incorporates a high-information content credit spread index to identify the financial accelerator parameters and measure the impact of financial shocks on the real economy. Estimation results identify an operative financial accelerator, where increases in external financing costs significantly reduce investment and output. Financial disturbances accounted for significant portions of investment and output declines during economic downturns, particularly in the 1970s.
The document proposes establishing a Government Investment Enterprise (GIE) to create a national foreclosure mitigation program. The GIE would hold equity investments in single-family residences to help restore the mortgage market. It would use existing TARP and GSE funds, without requiring new funding. The current foreclosure crisis is prolonged due to inefficiencies in programs like HAMP that often do not find an optimal solution for all parties. The proposed GIE aims to better match borrower ability with holder criteria to find a balanced solution and stabilize the housing market.
This document summarizes an article that discusses the financial crisis and proposed bailout. It provides background on how the housing bubble and subsequent bust led to losses for banks. Mortgage-backed securities spread risk but also enabled excessive leverage. Potential losses total hundreds of billions of dollars. While actual losses so far are smaller, future losses could be larger if housing prices decline further. The bailout aims to prevent cascading bank failures but risks moral hazard by rewarding past poor decisions.
The document summarizes the events leading up to the 2008 global financial crisis. It describes how low interest rates in the early 2000s led to a housing bubble, risky lending practices, and the bundling of subprime mortgages into securities. The collapse of the housing market revealed losses throughout the financial system. Major institutions like Bear Stearns and Lehman Brothers failed, severely damaging confidence and availability of credit.
This document discusses principal reduction for underwater mortgages. It presents opposing views that principal reduction amounts to a taxpayer bailout of reckless borrowers or a bank bailout. Alternatively, principal reduction could help address the foreclosure crisis by easing the burden on homeowners. However, others warn that principal reduction may encourage strategic default and create a moral hazard by rewarding past poor behavior. The document seeks to separate fact from fiction around these perspectives on principal reduction.
Moody's Credit Ratings & the Subprime Mortgage MeltdownKoyi Tan
Moody's ratings of mortgage-backed securities contributed to the 2008 financial crisis. Moody's underestimated the risks of subprime mortgages and assigned high credit ratings to securities backed by subprime mortgages. This misled investors and allowed the flawed mortgage market to grow substantially. Multiple parties share blame for the crisis, but Moody's inaccurate ratings were a key factor that enabled the crisis. New regulations were implemented through the Dodd-Frank Act, but it did not fully address the root causes and has been criticized for favoring large banks over other entities.
"Whether we like it or not, the laws of gravity work in financial markets as well and what goes up
ultimately comes down," Jagannadham Thunuguntla, head of the capital markets arm of India’s fourth
largest share brokerage firm, the Delhi-based SMC Group, told IANS.
US Recession 2008 Powerpoint Presentation SlidesSlideTeam
Be prepared for both natural and unnatural fluctuations in the economy by employing these US Recession 2008 PowerPoint Presentation Slides. Take assistance from these global depression PPT slides, to fully dissect the impact and financial crisis cost of the economic downturn. Exhibit the plan of action and the roadmap to safeguard your business through this content-specific economic-stagnation PowerPoint presentation. Analyze the factors that led to this economic recession and the key figures that aggravated the downfall using our professionally created universal slump PPT theme. Understand the strategies that helped the businesses who bought CDO survive by using our stagflation PPT layouts. Prepare a well-structured and in-sequence timeline of the leading events to keep track of the changing economic factors with the assistance of our global downturn PPT templates. This economic decline PPT deck will assist you in formulating a detailed and thoughtful business plan for your company. Download this global recession PPT deck and educate your audience about major economic events in an accessible way. https://bit.ly/3ccMmGl
Mortgage Market Presentation Pt. 1 & 2lerogers
The document discusses the mortgage market, including what a mortgage is, the primary and secondary markets, the roles of Fannie Mae and Freddie Mac, impacts of the mortgage crisis, and the future of the mortgage market. It notes that Fannie Mae and Freddie Mac purchase about 80% of new home mortgages and held $1.5 trillion in mortgages and MBS by 2008. The government took over Fannie Mae and Freddie Mac as conservator in 2008 and introduced programs like HAMP to help homeowners avoid foreclosure. The future of the GSEs and mortgage-backed securities is uncertain and dependent on economic conditions.
Summerlin Asset Management, LLC (SAM), is a diversified real estate investment and management company. SAM's expertise is the purchase, service, and resale, of both performing and non-performing real estate notes secured by the Deed of Trust or Mortgage.
Historical Credit Data | Total Credit Card SpendExperian
Find out how much your customers are spending on their credit cards with trended data. Understanding consumers’ past behavior is crucial to understanding their credit preferences, their potential risks and for developing a strategy for the future. Trended Solutions: Give your customers credit for their history.
Macro Risk Premium and Intermediary Balance Sheet Quantitiescatelong
The macro risk premium measures the threshold return for real activity that
receives funding from savers. Financial intermediaries’ balance sheet conditions provide a window on the macro risk premium. The tightness of intermediaries’ balance sheet constraints determines their “risk appetite”. Risk appetite, in turn, determines the set of real projects that
receive funding, and hence determine the supply of credit. Monetary policy affects the risk appetite of intermediaries in two ways: via interest rate policy, and via quantity policies. We estimate time varying risk appetite of financial intermediaries for the U.S., Germany, the U.K., and Japan, and study the joint dynamics of risk appetite with macroeconomic aggregates and monetary policy instruments for the U.S. We argue that risk appetite is an important indicator for monetary conditions.
The looming risk of an earthquake-triggered mortgage crisis in California
A major California earthquake could cause tens of billions of dollars in mortgage defaults in San Francisco alone, where subprime exposure is even less than in other parts of the financially troubled state.
One of the scariest aspects of any crisis is not knowing how much worse it can get. The current crisis is no different. The sudden realization of vulnerability can lead to a predilection for imagining worst-case scenarios or a willful ignorance of urgent realities. What\'s needed instead is a frank accounting of the ongoing risks and well-founded plans to deal with them.
It is in this spirit that we highlight the risk of yet another financial crisis lurking in California that has received precious little attention: A major earthquake would leave many California population centers susceptible to a wave of mortgage defaults rivaling those we\'ve seen to date. Because only 12% of California homeowners carry earthquake insurance and private mortgage insurance does not cover damaged properties, mortgage investors would be left in the rubble holding abandoned, damaged properties and defaulted loans.
This document provides a business analysis of Nationstar Mortgage Holdings, Inc. and the U.S. mortgage industry. It discusses the history of the mortgage industry and how the subprime lending crisis and housing bubble burst led to the dissolution of many mortgage lenders. This created opportunities for mortgage servicing companies to acquire servicing rights. The document also analyzes laws and regulations that impacted the industry, including those establishing programs to help homeowners, as well as trends showing non-bank servicers expanding as big banks exit the industry.
A Primer On The Mortgage Market And Mortgage Finance Mc Donaldsmullin2
This document provides a primer on the mortgage market and mortgage finance. It discusses the basics of mortgages, including the loan amount, term, repayment schedule, and interest rate. It also describes the risks to lenders, including default and market risk, and how mortgages are secured by collateral, usually the property being purchased. The primer defines key mortgage terms and concepts to aid individuals in making better mortgage decisions.
Mba 665 final project government impact on businessKelly Giambra
Nationstar Mortgage Holdings Inc. is a leading nonbank mortgage servicer that has gained market share since the 2008 financial crisis due to increased bank regulations. However, the Trump Administration now plans to deregulate the mortgage industry and dismantle regulations passed by Dodd-Frank. This could allow big banks to re-enter the market and increase competition for nonbank servicers like Nationstar. The paper analyzes how deregulation may present both opportunities and challenges for Nationstar's business model going forward.
Introducing Subprime Mortgage Crisis PowerPoint Presentation Slides. The presentation highlights the impact of the financial crisis of the year in percentages. Take the advantage of our ready-to-use PPT template to showcase fall in housing prices, unemployment, etc. during a crisis. The impact of a great recession on investment banks is also discussed in this presentation. This content-ready slide design also illustrates the significant financial bubble burst of financial years. Highlight the cost of the financial crisis and its key members. The effects of the crisis on the economy of the US can be effectively discussed using our PPT theme. Showcase how the crisis started spreading in various other parts of the country with the use of this PPT visual. Depict how CDO customers protect themselves during the recession. Explain the effect of subprime in many countries with this PPT theme. Further, describe the current scenario after a decade of a financial crisis in the US. Explain fed tapering, quantitative easing, etc. effectively by using this PPT slideshow. At last, the presentation discusses the vision, mission, and goals of the company. https://bit.ly/2PeSvsw
1) Subprime loans are loans given to borrowers who do not qualify for prime interest rates due to poor credit histories, with lenders charging higher rates to offset the increased risk.
2) Mortgage-backed securities fueled the growth of the subprime market by allowing lenders to sell mortgages to investors. However, rising default rates caused the value of these securities to drop, damaging investors and the financial institutions that held them.
3) The subprime crisis began in 2007 when falling home prices and rising interest rates caused many subprime borrowers to default on their loans, with the effects rippling through global markets.
- Freddie Mac's 2007 annual report summarizes the company's activities and financial results for the year.
- Freddie Mac faced significant challenges in 2007 due to the downturn in the housing market, including losses of $3.1 billion. However, a large portion of the losses were due to mark-to-market accounting rules rather than economic losses.
- Despite the difficulties, Freddie Mac continued its mission of providing liquidity and stability to the U.S. housing market. The company helped many families avoid foreclosure and expanded affordable housing programs.
This document summarizes a study that estimates a dynamic stochastic general equilibrium (DSGE) model to quantify the role of financial frictions, known as the financial accelerator mechanism, in U.S. business cycle fluctuations from 1973 to 2008. The model incorporates a high-information content credit spread index to identify the financial accelerator parameters and measure the impact of financial shocks on the real economy. Estimation results identify an operative financial accelerator, where increases in external financing costs significantly reduce investment and output. Financial disturbances accounted for significant portions of investment and output declines during economic downturns, particularly in the 1970s.
The document proposes establishing a Government Investment Enterprise (GIE) to create a national foreclosure mitigation program. The GIE would hold equity investments in single-family residences to help restore the mortgage market. It would use existing TARP and GSE funds, without requiring new funding. The current foreclosure crisis is prolonged due to inefficiencies in programs like HAMP that often do not find an optimal solution for all parties. The proposed GIE aims to better match borrower ability with holder criteria to find a balanced solution and stabilize the housing market.
This document summarizes an article that discusses the financial crisis and proposed bailout. It provides background on how the housing bubble and subsequent bust led to losses for banks. Mortgage-backed securities spread risk but also enabled excessive leverage. Potential losses total hundreds of billions of dollars. While actual losses so far are smaller, future losses could be larger if housing prices decline further. The bailout aims to prevent cascading bank failures but risks moral hazard by rewarding past poor decisions.
The document summarizes the events leading up to the 2008 global financial crisis. It describes how low interest rates in the early 2000s led to a housing bubble, risky lending practices, and the bundling of subprime mortgages into securities. The collapse of the housing market revealed losses throughout the financial system. Major institutions like Bear Stearns and Lehman Brothers failed, severely damaging confidence and availability of credit.
This document discusses principal reduction for underwater mortgages. It presents opposing views that principal reduction amounts to a taxpayer bailout of reckless borrowers or a bank bailout. Alternatively, principal reduction could help address the foreclosure crisis by easing the burden on homeowners. However, others warn that principal reduction may encourage strategic default and create a moral hazard by rewarding past poor behavior. The document seeks to separate fact from fiction around these perspectives on principal reduction.
Moody's Credit Ratings & the Subprime Mortgage MeltdownKoyi Tan
Moody's ratings of mortgage-backed securities contributed to the 2008 financial crisis. Moody's underestimated the risks of subprime mortgages and assigned high credit ratings to securities backed by subprime mortgages. This misled investors and allowed the flawed mortgage market to grow substantially. Multiple parties share blame for the crisis, but Moody's inaccurate ratings were a key factor that enabled the crisis. New regulations were implemented through the Dodd-Frank Act, but it did not fully address the root causes and has been criticized for favoring large banks over other entities.
"Whether we like it or not, the laws of gravity work in financial markets as well and what goes up
ultimately comes down," Jagannadham Thunuguntla, head of the capital markets arm of India’s fourth
largest share brokerage firm, the Delhi-based SMC Group, told IANS.
US Recession 2008 Powerpoint Presentation SlidesSlideTeam
Be prepared for both natural and unnatural fluctuations in the economy by employing these US Recession 2008 PowerPoint Presentation Slides. Take assistance from these global depression PPT slides, to fully dissect the impact and financial crisis cost of the economic downturn. Exhibit the plan of action and the roadmap to safeguard your business through this content-specific economic-stagnation PowerPoint presentation. Analyze the factors that led to this economic recession and the key figures that aggravated the downfall using our professionally created universal slump PPT theme. Understand the strategies that helped the businesses who bought CDO survive by using our stagflation PPT layouts. Prepare a well-structured and in-sequence timeline of the leading events to keep track of the changing economic factors with the assistance of our global downturn PPT templates. This economic decline PPT deck will assist you in formulating a detailed and thoughtful business plan for your company. Download this global recession PPT deck and educate your audience about major economic events in an accessible way. https://bit.ly/3ccMmGl
Mortgage Market Presentation Pt. 1 & 2lerogers
The document discusses the mortgage market, including what a mortgage is, the primary and secondary markets, the roles of Fannie Mae and Freddie Mac, impacts of the mortgage crisis, and the future of the mortgage market. It notes that Fannie Mae and Freddie Mac purchase about 80% of new home mortgages and held $1.5 trillion in mortgages and MBS by 2008. The government took over Fannie Mae and Freddie Mac as conservator in 2008 and introduced programs like HAMP to help homeowners avoid foreclosure. The future of the GSEs and mortgage-backed securities is uncertain and dependent on economic conditions.
Summerlin Asset Management, LLC (SAM), is a diversified real estate investment and management company. SAM's expertise is the purchase, service, and resale, of both performing and non-performing real estate notes secured by the Deed of Trust or Mortgage.
Historical Credit Data | Total Credit Card SpendExperian
Find out how much your customers are spending on their credit cards with trended data. Understanding consumers’ past behavior is crucial to understanding their credit preferences, their potential risks and for developing a strategy for the future. Trended Solutions: Give your customers credit for their history.
Macro Risk Premium and Intermediary Balance Sheet Quantitiescatelong
The macro risk premium measures the threshold return for real activity that
receives funding from savers. Financial intermediaries’ balance sheet conditions provide a window on the macro risk premium. The tightness of intermediaries’ balance sheet constraints determines their “risk appetite”. Risk appetite, in turn, determines the set of real projects that
receive funding, and hence determine the supply of credit. Monetary policy affects the risk appetite of intermediaries in two ways: via interest rate policy, and via quantity policies. We estimate time varying risk appetite of financial intermediaries for the U.S., Germany, the U.K., and Japan, and study the joint dynamics of risk appetite with macroeconomic aggregates and monetary policy instruments for the U.S. We argue that risk appetite is an important indicator for monetary conditions.
The looming risk of an earthquake-triggered mortgage crisis in California
A major California earthquake could cause tens of billions of dollars in mortgage defaults in San Francisco alone, where subprime exposure is even less than in other parts of the financially troubled state.
One of the scariest aspects of any crisis is not knowing how much worse it can get. The current crisis is no different. The sudden realization of vulnerability can lead to a predilection for imagining worst-case scenarios or a willful ignorance of urgent realities. What\'s needed instead is a frank accounting of the ongoing risks and well-founded plans to deal with them.
It is in this spirit that we highlight the risk of yet another financial crisis lurking in California that has received precious little attention: A major earthquake would leave many California population centers susceptible to a wave of mortgage defaults rivaling those we\'ve seen to date. Because only 12% of California homeowners carry earthquake insurance and private mortgage insurance does not cover damaged properties, mortgage investors would be left in the rubble holding abandoned, damaged properties and defaulted loans.
Mrotek Schmitz 2010 Cas Annual Meeting Finalkylemrotek
The rise and fall of subprime mortgage securitizations contributed in part to the ensuing credit crisis
and financial crisis of 2008. Some participants in the subprime-mortgage-backed securities market relied at least
in part on analyses grounded in the loss development factor (LDF) method, and many did not conduct their own
credit analyses, relying instead on the work of others such as securities brokers and rating agencies. In some
cases, the parties providing these analyses may have lacked the independence, or at least the appearance of it, that
would have likely better served the market.
A new appreciation for the value of independent analysis is clearly a silver lining and an important lesson to be
taken from the crisis. Actuaries are well positioned to lend assistance to the endeavor.
Mortgages are long-duration assets and, similarly, mortgage credit losses are relatively long-tailed. As casualty
actuaries are aware, the LDF method has inherent limitations associated with immature development. The
authors in this paper will cite examples of parties relying on the LDF or similar methods for projecting subprime
mortgage credit losses, highlight the limitations of relying exclusively on such methods for projecting subprime
mortgage credit performance, and conclude by offering general enhancements for an improved approach that
considers the underwriting characteristics of the underlying loans as well as economic factors.
An Analysis of the Limitations of Utilizing the Development Method for Projec...kylemrotek
Abstract: The rise and fall of subprime mortgage securitizations contributed in part to the ensuing credit crisis
and financial crisis of 2008. Some participants in the subprime-mortgage-backed securities market relied at least
in part on analyses grounded in the loss development factor (LDF) method, and many did not conduct their own
credit analyses, relying instead on the work of others such as securities brokers and rating agencies. In some
cases, the parties providing these analyses may have lacked the independence, or at least the appearance of it, that
would have likely better served the market.
A new appreciation for the value of independent analysis is clearly a silver lining and an important lesson to be
taken from the crisis. Actuaries are well positioned to lend assistance to the endeavor.
Mortgages are long-duration assets and, similarly, mortgage credit losses are relatively long-tailed. As casualty
actuaries are aware, the LDF method has inherent limitations associated with immature development. The
authors in this paper will cite examples of parties relying on the LDF or similar methods for projecting subprime
mortgage credit losses, highlight the limitations of relying exclusively on such methods for projecting subprime
mortgage credit performance, and conclude by offering general enhancements for an improved approach that
considers the underwriting characteristics of the underlying loans as well as economic factors.
1) Canada's financial crisis was much milder than the US due to differences in their mortgage markets. Canada has maximum 5-year mortgage terms, mortgage interest is not tax deductible, and CMHC oversees mortgages.
2) In the US, 30-year fixed rate mortgages are common, interest is tax deductible incentivizing debt, and multiple agencies regulate housing. Securitization of mortgages led to risky lending and the financial crisis.
3) Lessons include that securitization does not solve the shortage of long-term capital. Regulation is needed for securitization. Proposals to help the US housing market include renegotiating mortgage interest rates or reducing principal amounts for
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early warnings of a potential housing bubble; predictions from experts in 2005 that the rapid rise in housing prices would stabilize; the events of 2007-2008 that triggered the crisis including subprime mortgage defaults and collapse of lenders; effects like rising unemployment and falling home prices; government interventions such as bailing out financial institutions; how the crisis impacted different groups like seniors and students; international effects; predictions for 2010 of continued high unemployment; and advice on steps individuals could take in response to the difficult economic conditions.
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early warnings of a potential housing bubble; predictions from experts in 2005 that the rapid rise in housing prices would stabilize; predictions in 2006 that prices would flatten or drop in some markets; explanations of what happened in 2007-2008 as the crisis unfolded with the collapse of subprime lenders and Bear Stearns; effects like rising bank failures and government intervention; how individuals and the global economy were impacted; and predictions for 2010 of continued high unemployment. The coverage encompasses perspectives from a range of sources including government officials, economists, bankers, and ordinary citizens.
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early warnings of a potential housing bubble in 2005, predictions of a slowing or stabilizing housing market also in 2005. By 2006, some experts predicted home price declines in overheated markets by late 2007. The document then summarizes the events of the financial crisis in 2007-2008, including the collapse of subprime lenders and Bear Stearns as well as the government takeover of Fannie Mae and Freddie Mac. It discusses effects on individuals as seniors, students, or workers and actions by the government and Federal Reserve to intervene and stimulate the economy. Later sections consider global impacts and
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early concerns about a potential housing bubble in 2005, optimistic predictions that the rise in home prices would stabilize, and predictions of price declines in some markets by 2007. It then summarizes the events that triggered the crisis in 2007-2008, including subprime mortgage defaults and failures of lenders and banks. Later summaries explain government interventions and their impact, effects on different groups, global impacts, and predictions of a slow economic recovery.
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early warnings of a potential housing bubble in 2005, predictions of a slowing or stabilizing housing market also in 2005. By 2006, some experts predicted home price declines in overheated markets by late 2007. In 2008, the document outlines key events that triggered the crisis such as losses by subprime lenders. It provides summaries of advice on protecting oneself and explanations of government interventions. Later summaries discuss effects on individuals, other countries, and predictions of a slow economic recovery.
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early warnings of a potential housing bubble in 2005, predictions of a slowing or stabilizing housing market also in 2005. By 2006, some experts predicted price drops in overheated markets. The crisis began in 2007 with subprime mortgage losses and bankruptcies. In 2008, major banks collapsed and the government took action to stabilize markets. Coverage explained the impacts on individuals as seniors, students, or workers. Later summaries focused on recovery predictions, advice for individuals, and ongoing economic challenges.
This document provides an overview of media coverage of the financial crisis from 2005-2010 through summaries of various articles on the topic. It discusses early signs of a potential housing bubble in 2005, optimistic predictions from housing experts that year, and concerns about price declines in 2006. It then summarizes the events that triggered the crisis in 2007-2008, including subprime mortgage defaults and failures of lenders and banks. Later sections discuss the effects of the crisis on individuals, steps taken by the government to intervene and stimulate the economy, global impacts, and predictions from experts about the economic recovery.
The Washington Post's Coverage of the Financial Crisisagrand905
The document summarizes The Washington Post's coverage of the financial crisis from 2004-2008. It discusses how the Post provided early warnings of the housing bubble and recession. It also covers the Post's analysis of the crisis's impact on Wall Street, Main Street, government policy responses, and key events like the use of TARP funds to bail out automakers. The document examines the Post's balanced and fact-based approach to explaining the complex financial issues facing the economy.
The document provides an overview of media coverage and expert opinions on the US housing crisis and financial crisis from 2005 to 2010. It includes perspectives from that time period on whether a housing bubble existed, what factors contributed to the bubble, predictions of price declines or continued growth, explanations of key events that triggered the crisis in 2007-2008, discussions of government assistance programs, and predictions about the economic outlook and impact on individuals. A wide range of sources and viewpoints are featured from national real estate groups, economists, government officials, and analysts.
This paper is a summary of press clippings gleaned from Internet during the period April to July 2008. This exercise was performed to provide a quick summary of the US credit crisis at that particular point in time / 2nd quarter 2008. The paper was presented to a non native English speaking European audience consisting primarily of insolvency judges July 3rd 2008 in Paris.
The document analyzes debt levels across various sectors in the US economy following the 2008 financial crisis to determine if conditions are ripe for a sequel to the book and film "The Big Short." It finds that household, financial institution, corporate, and state/local government debt all improved significantly from crisis levels. While federal debt ballooned, interest payments remain a small percentage of spending for now. With debt trends healthier overall, the conditions that caused the crisis are unlikely to reoccur, so a sequel called "The Big Short 2" would lack a true story to be based on.
The document summarizes recent housing market data and trends. Mortgage rates are at record lows but job growth is needed for sustained recovery. Home sales increased year-over-year but slowed in May. Prices rose slightly from a year ago but distressed home sales still impact the market. Inventory levels remained similar to last year, supporting price stability. Affordability remains high due to low prices and rates.
The Great Recession document summarizes the causes and effects of the late-2000s financial crisis and recession in the United States. It discusses how a housing bubble fueled by subprime lending burst, triggering a credit crunch and widespread economic impacts. The recession resulted in job losses, rising unemployment, and high foreclosure rates. Government responses included stimulus packages under Presidents Bush and Obama, as well as financial bailouts. The recovery was predicted to be slow due to persistent effects of financial crises on economic growth.
The Post provides comprehensive coverage of the financial crisis through its location in Washington D.C. and partnerships with other major news organizations. It analyzes the crisis from its early signs in 2004 through the present day recovery. During the crisis, it covered the effects on markets, housing, jobs and Main Street. It also closely tracked government policies and debates around regulating Wall Street and aiding struggling industries. In the post-crisis period, it has reported on the challenges of economic recovery and how growth has not benefitted all workers.
The housing market recovery slowed in July after the homebuyer tax credit expired, with home sales falling below year-ago levels for the first time in 14 months. However, home prices remained stable and mortgage rates set new record lows, maintaining historically high affordability. The job market and economy recovery remained concerns. New financial reform laws aimed to strengthen consumer protections for mortgages and credit reporting.
Understanding the Current US RecessionShiva Pillai
The housing bubble and subsequent financial crisis were caused by excessive lending and risky investments in mortgage-backed securities. Low interest rates fueled a rise in subprime lending. When housing prices peaked and interest rates rose, many homeowners defaulted on mortgages. This led to a collapse in the value of mortgage-backed securities, freezing credit markets and damaging financial institutions and the broader economy. Government intervention was needed to stabilize markets and assist homeowners. While recovery will take time, lessons from the crisis could help build a more stable financial system going forward.
The document summarizes the state of the US and global economy during the financial crisis. It discusses how the crisis unfolded in phases from subprime mortgages to a liquidity and then solvency crisis. Government intervention increased but unemployment rose and the housing, stock, and banking markets declined sharply. Banks increased risky lending and are now undercapitalized with high losses. The outlook calls for a long recession with tight credit and reduced lending until balance sheets improve.
The implementation of the MAR in 2010 will
provide a valuable opportunity for insurers
to assess the effectiveness of their internal
controls and the accuracy of their financial
reporting. Insurers must promptly develop a
strategy for compliance with the MAR if they
have not done so already. A set of corporate
norms for complying with the new MAR
has yet to develop, but actuaries have the
knowledge and skills to assist in many aspects
of the process and can help determine the set
of best practices moving forward.
A presentation on the overview of loss reserving for lender captive mortgage reinsurance as presented at the Casualty Actuarial Society\'s 2008 Casualty Loss Reserving Seminar in Washington DC
Evaluation of Capital Needs in Insurancekylemrotek
There are various methods to evaluate capital needs depending on the intended use and perspective. Static financial projections develop capital requirements over multiple years using regulatory factors. Dynamic financial projections simulate capital needs over time to achieve a defined outcome percentile. Regulatory regimes like Solvency II specify technical provisions, risk margin, and solvency capital requirements. Rating agencies also consider capital adequacy in their models using adjusted capital ratios like Moody's MRAC ratio.
The document summarizes various methods for mortgage reinsurance loss forecasting including aggregate versus loan-level models, deterministic versus stochastic approaches, and loss development and Bornhuetter-Ferguson methods. It also discusses using loan-level transition processes, underwriting characteristics, economic factors, and hedging tools like interest rate swaps and real estate futures to estimate losses and hedge risk.
Mortgage insurers are making their underwriting and pricing more stringent in response to declining housing values. They are increasing minimum credit scores and loan-to-value ratios, restricting certain geographic markets, and imposing additional eligibility requirements like down payment sources, appraisal and reserve verification, and home buyer education.
Mortgage Insurance Data Organization Havlicek Mrotekkylemrotek
Presentation on the organization of mortgage insurance data for loss reserving purposes, presented at the Casualty Actuarial Society\'s 2008 RPM conference in Boston
FAS 163 provides guidance for accounting for financial guarantee insurance contracts. It requires (1) recognition of claim liabilities when credit deterioration occurs prior to default, (2) measurement of claim liabilities using discounted expected future cash flows, and (3) expanded disclosures about FGI contracts, assumptions, and risk management activities. The standard creates consistency in FGI accounting and financial reporting. Its implementation resulted in significant adjustments to unearned premium reserves, loss reserves, and reinsurance balances for major FGI companies. Statutory accounting is also considering revisions to require more FAS 163-like disclosures.
1. One Man’s View on the Future of
Mortgage Insurance
Prepared for: CAS Annual Meeting 2008
Prepared by: Kyle Mrotek, FCAS, MAAA
Consulting Actuary
Milliman, Inc.
2. Overview
Economy/housing market
– House price & supply
– Government programs
– Unemployment
MI Industry Participants
– Underwriting
– Pricing
– Competing products
– Strategic
– Perspectives
2
3. Home Price & Supply
“…economists found that homeowners typically lost their homes only
after at least two things happened: Their home values dropped and
they either couldn't afford the payments or stopped making payments
after losing hope that prices would eventually recover.”
Source: Blumenthal, “Underwater Need Not Mean Foreclosure,” WSJ 11/5/08
3
4. Home Price & Supply
4
Source: Foote, et al., “Negative Equity and Foreclosure: Theory and Evidence,” Journal of Urban Economics 64 (2008)
5. Home Price & Supply
MI claims and losses lag foreclosures
Foreclosures lag foreclosure starts
Foreclosure starts lag both foreclosure starts and home price
appreciation
– Foreclosure starts are dependent variable
– A couple previous foreclosure starts and home price appreciations are
independent variables
– Four models, one for each combination of Prime vs Subprime and Fixed
vs Adjustable
Source: Jan Hatzius, “Beyond Levereged Losses: The Balance
5 Sheet Effects of the Home Price Downturn”
6. Projected HPA and Modeled Prime Foreclosure Starts
Source: Jan Hatzius, “Beyond Levereged Losses: The Balance
6 Sheet Effects of the Home Price Downturn” and Moody’s
7. Home Price & Supply
Predictions suggest the housing market will “reach its lowest price
level in 2009Q4” (Zhong Yi Tong, Ph.D., Chief Economist, RMIC.
“Economic, Housing & Mortgage Market Outlook.” August ‘08)
Assuming foreclosures lag home prices, highest level of foreclosure
starts to come after 2009Q4?
7
8. Home Price & Supply
The U.S. Market Risk IndexSM score
– Published quarterly by PMI Group
– Score published for each MSA
– Translates to the probability that house prices will be lower in two years
within an MSA
Source: PMI Economics Real Estate Trends Fall 2008
8
9. PMI Risk Index
9 Source: PMI Economic Real Estate Trends Fall 2008
10. Home Price & Supply
Negative equity is a necessary (though not sufficient) cause of
foreclosure.
– In MA in 1991, of 100,000 homes “underwater”, only 6.4% of them
defaulted.
– People need someplace to live
Market Risk Index is connected to affordability
Source: Blumenthal, “Underwater Need Not Mean Foreclosure,” WSJ 11/5/08
10
11. Home Price & Supply
Less Affordable More Affordable
11 Source: PMI Economic Real Estate Trends Fall 2008
12. Home Price & Supply
Source: LA Times, “Zillow measures homeowners’ perception gap”, and Zillow.com Perception Survey
12
13. Home Price & Supply
Source: “Zillow measures homeowners’ perception gap”, and Zillow.com Perception Survey
13
14. Home Price & Supply
Government programs tend to treat housing supply by attempting to
reduce the number of foreclosures or increasing the number of buyers
(instead of helping people when they would have to sell at a loss):
Source: FHA, Foote et al, and as noted.
14
15. Federal Programs
Hope for Homeowners (H4H)
– Part of the Housing and Economic Recovery Act of 2008
– Effective from October 1, 2008 to September 30, 2011
– Refinance existing mortgage into a new 30-year fixed with low rate
– ORIGINALLY, believed it could prevent as many as 400,000 foreclosures
over 3 years (CBO 10/01/08)
– More recently, 20,000 borrowers expected to be able to refinance by Fall
2009 (FHA 11/14/08)
– FHA received only 42 applications in its first two weeks
– Due to 60 day processing window, FHA is yet to approve one
Many federal programs also target the credit market, with the hope of
encouraging lending…
Source: Federal Housing Administration,,Los Angeles Times, CBO, AP
15
16. Federal Programs
Liquidity is important so that lenders will continue to make loans that
MI companies can insure
Bailout Plan, or “Emergency Economic Stabilization Act of 2008”
– Government can spend up to $700 billion to stabilize and add liquidity
– As of Nov. 12, “…the Treasury has put a plan to purchase illiquid
mortgage-related assets on hold.” (Solomon, “Treasury not Planning to Buy Bad Loans,
Assets,” Wall Street Journal.)
Troubled Asset Relief Program (TARP)
– No MI claim if lender writes-down principal of a mortgage
– “the [MI] coverage is applied to the new loan amount and we [PMI] do not
suffer that loss. It is absorbed by the investor.” (The PMI Group 9/30/08 Earnings Call
Transcript-Seeking Alpha)
– “Recent legislation and loan modification programs…could have a
positive impact by potentially reducing the number of defaults
going to claim.” (Radian 2008Q3 10Q)
16 Source: Boston Business Journal, Bank of America Form 10-Q and as noted.
17. State Programs
Foreclosure Freezes
– Schwarzenegger proposed 90-day freeze on pending home foreclosures
for CA on Wednesday, Nov. 5th.
– In May of 2007, MA became “the first state in the country to declare a
moratorium on foreclosures stemming from predatory lending”
(TheBostonChannel.com, “Move Against Predatory Lending is Unprecedented”)
• The following August, “foreclosure filings in Massachusetts jumped 454
percent…about 90 days after the law took effect” (RealtyTrac, September Foreclosure Report)
– MI Loss Reserving Impacts
Different regions require different approaches: “Homes go into
foreclosure [in CA, NV, and FL]…because of inflated home prices; in
Cleveland,...due to deceptive subprime loans” (Washington Independent, “A False Fix for the
Mortgage Crisis”)
17
18. 18 “Average” indicates default risk is projected to remain relatively constant for the near term.
“High” indicates default risk is projected to increase for the near term.
19. Unemployment
Unemployment rise increased numbers of defaults
It has been reported that “In June, 45.5% of all delinquencies reported
by Freddie Mac…were due to unemployment or the loss of income,
according to the company.” (CNNMoney.com, “Mounting job losses
fueling foreclosures”)
19
20. Underwriting
Lower maximum LTV
Higher minimum FICO (particularly high LTVs)
Full documentation
Interest Only / Option ARM
20
Source: Company rate cards and AIG Conference Call Credit Presentation 11/10/08
22. Pricing
Rate increases
Comparison of Standard MI Premium Rates
Fixed Payment
30 year term
Nonrefundable
Annualized Monthly Rate (bps) Relative
LTV Coverage May 2006 August 2008 Change
(90-95] 30% 78 94 21%
(85-90] 25% 52 62 19%
(80-85] 12% 32 38 19%
Source: United Guaranty
22
23. Competing Products
Competing Products
– CDS
– “Piggyback” loans
FHA is gaining market share with respect to private MI:
Source: Inside Mortgage Finance, August 15, 2008
23
24. Strategic
Shifts in business strategies:
– Short term-capital preservation, expense reduction, back to basics,
geographic contraction
– Mortgage insurers are reorganizing themselves
• “Genworth said it's examining a number of strategic alternatives for the U.S.
mortgage insurance business, including a possible spinoff” (Barr. “Genworth Says it may
Spin Off Mortgage Insurance Unit,” Marketwatch)
• “Genworth’s foreign units, which analysts see as the likeliest to go up for sale,
include mortgage-insurance businesses in Canada and Australia.” (Wall Street
Journal, Nov. 12 2008)
• AIG selling non-core US P&C companies
– Lender captive reinsurance structures
– Long term-product expansion (financial guaranty, student loans, payment
protection)
– Long term-geographic expansion
24
25. Management Perspective
MIs point to economic turmoil
– “Steep Declines in real estate values, tightening markets for obtaining
capital or credit, and the liquidity concerns of financial institutions have
created a significant amount of uncertainty in the capital markets, which
has resulted in significant downward pressure on asset values, especially
single family homes” (Triad 3Q2008 Form 10-Q)
– “The significant weakening of employment in the United States and the
U.S. credit, capital, residential mortgage, and housing markets continues
to negatively affect our U.S. Mortgage Insurance Operations segment.”
(PMI Group 3Q2008 Form 10-Q)
25
26. Management Perspective
Double Bind:
– “Unless we raise new capital and/or reduce…NIW and risk-in-
force…[policyholders’ positions] will likely decline and its risk-to-capital
ratio could increase beyond levels necessary to meet certain regulatory
capital adequacy requirements and/or certain credit facility financial
covenants….In addition, any reduction in new insurance written would
have an adverse effect on premiums earned.” (PMI Group 3Q2008 Form 10-Q)
Legislation
– “There can be no assurance that any changes resulting from the
implementation of this new regulatory regime will not alter our relationship
or ability to conduct business with the GSEs in a materially adverse
manner…There can be no assurance that current, or future, legislation or
agreements to modify loans, should they occur, will materially reduce the
level of delinquencies and claims we are currently experiencing or could
experience in the future.” (MGIC Investment 3Q2008 Form 10-Q)
26
27. Rating Agency Perspective
Ratings as of Nov 12, 2008:
Rating Agency
MI Fitch Moody’s S&P
CMG AA N/R AA-
Genworth A+ Aa3 AA-
MGIC BBB- A1 A
PMI BBB+ A3 A-
Radian N/R A2 BBB+
RMIC A+ A1 A+
Triad N/R N/R B
UGC AA- A3 A-
Source: Fitch, Moody’s, S&P
27
28. Rating Agency Perspective
“The root cause of the crisis can be attributed to the rapid
appreciation of real estate prices between 2000 and 2006, widely
characterized as the “housing bubble,” and the evolution of innovative
mortgage products that both fed the bubble and ultimately led to its
collapse.” (AM Best Research 2008 Special Report)
“The boom also created lax underwriting standards…underwriting
discipline was [also] weakened by…the securitization of mortgage
loans.” (AM Best Research 2008 Special Report)
“For the MI industry, the end of the housing boom and resulting record
losses was largely a credit-driven phenomenon.” (AM Best Research 2008 Special Report)
“…the current period of credit market turmoil and the downturn in real
estate may not end until 2010 through 2011, when the bulk of the
ARMs are slated to reset.” (AM Best Research 2008 Special Report)
28
29. Rating Agency Perspective
“…the mortgage insurance industry’s troubles are not over and may,
in fact, get worse before they improve.” (Fitch Ratings Special Report 2Q2008)
“…stricter underwriting standards…[are] expected to produce better
performances for 2008 and future years.” (Fitch Ratings Special Report 2Q2008)
“Over the course of 2008 and 2009…Fitch expects that the mortgage
insurance industry will need to continue posting very high loss
reserves as the industry’s pipeline of troubled mortgages becomes
increasingly made up of 2007 vintage loans and current loss reserves
are paid out as claims.” (Fitch Ratings Special Report 2Q2008)
29
30. Fannie/Freddie Perspective
“Based upon currently available information, we expect that most of
our mortgage insurance counterparties possess adequate financial
strength and capital to meet their obligations to us for the near term.”
(Freddie Mac 2008Q3 10-Q)
“If we are no longer willing or able to obtain mortgage insurance from
our primary mortgage insurer counterparties, or these counterparties
restrict their eligibility requirements for high loan-to-value ratio loans,
and we are not able to find suitable alternative methods of obtaining
credit enhancement for these loans, we may be restricted in our ability
to purchase loans with loan-to-value ratios over 80% at the time of
purchase.” (Fannie Mae 2008Q3 10-Q)
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32. Closing Thoughts
People are going to buy houses
People are going to need mortgage finance
Mortgage default risk will continue to exist
Lenders to share risk of default
Private MI’s domain
– Expertise
– Information exchange systems
– Underwriting/pricing systems
– Claims handling/loss mitigation
– Regulatory
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