Mortgage insurers could be set for a comeback as the housing market recovers
Mortgage insurers could be set for a comeback as the housing market recovers.
The sector has been dogged by poor performance, with Genworth recently shedding 400 jobs and Triad Guaranty filing for bankruptcy. But an S&P analyst has predicted the resurgence of the housing market could spell good news for beleaguered sector.
"A sector some had written off seems to be making a comeback. Mortgage insurers seem poised to return to profitability in 2014," S&P analyst Ron Joas said in a report according to Bloomberg.
In spite of Triad's recent bankruptcy, Joas said capital was flowing into the sector, alleviating fears that more mortgage insurers would become insolvent. Bloomberg reported that data from Inside Mortgage Finance shows that private guarantor policies more than doubled from 2011 to 2012, representing policies on $175bn in mortgages.
