Oct. 21 (Reuters)—MGIC Investment Corp , the largest publicly listed U.S. mortgage insurer, said reinsurers were interested in entering the mortgage reinsurance business, attracted by the high returns that could be earned from underwriting new mortgages.
While the mortgage insurers are struggling under the weight of defaults from loans underwritten during the housing boom, stricter underwriting standards by banks and insurers mean the current crop of mortgages are of a much higher quality.
"I think in discussions that we've had, there are people that are interested, as the quality of the (new) business is very good," MGIC Executives said on their post-earnings conference call.
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