Anticipating 'Delinquency Stabilization,' KBW Optimistic About Mortgage Insurers (MTG, PMI, RDN)
Keefe, Bruyette & Woods Inc., anticipating "delinquency stabilization," reiterated its Outperform rating on shares of MGIC Investment Corp. (NYSE: MTG), The PMI Group, Inc. (NYSE: PMI), and Radian Group Inc. (NYSE: RDN) this morning.
KBW notes that "Second-quarter earnings this year will be a very important event for the mortgage insurers, as the positive seasonal trends of the first quarter give way to more meaningful underlying data that could provide greater clarity on whether a secular shift in credit is underway."
Further, KBW analysts comment that "while employment trends, home price stabilization, and a pullback in Federal Housing Administration (FHA) market share are all key components to the long-term strengthening of the mortgage insurance industry, we believe delinquency trends are the most important near-term driver of company performance."
MGIC, PMI Group, and Radian Group all lost over 1% in trade on Monday.
