Mortgage Insurers Keep Close Eye on Exotic Loans; New Products Can Be Sources of Risks, Revenues
August 11, 2005
Mortgage insurance officials are telling investors that it’s too early to tell how growth in alternative mortgages will impact their default rates going forward, but they are focused on the risks involved and are continuing to monitor the situation. Executives at the PMI Group, Inc., said during a recent conference call that they are closely watching the performance of exotic loans in order to properly manage the risks they entail.