- RBC analyst Mark Dwelle responds to earlier reports of a partnership between Freddie Mac (OTCQB:FMCC) and Arch Capital (NASDAQ:ACGL) saying, investors should buy the weakness in private mortgage insurers as the impact will not be as bad as the stock selloff.
- The pilot program being tested by Freddie Mac and Arch Capital has investors concerned, but Dwelle notes that the plan is a test program and it only impacts the "singles" business. The plan will need be adopted by Fannie Mae (OTCQB:FNMA) and other lenders to be of significant immediate concern.
- Radian Group (RDN -10.6%), MGIC (MTG -9.8%), NMI Holdings (NMIH -10.1%), and Essent Group (ESNT -10.4%) all crashed on the news earlier today.
- Previously: Mortgage insurers crash on Freddie Mac partnership with Arch Capital (March 12)
- Source: Bloomberg
RBC says mortgage insurers are a buy
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| Symbol | Last Price | % Chg |
|---|---|---|
| FMCC | - | - |
| Federal Home Loan Mortgage Corporation | ||