Grant's: Time To Buy Mortgage Insurers?

Private mortgage insurers, MGCI Investment Corp. and Radian Group Inc. are back in vogue according to last week’s issue of Grant’s Interest Rate Observer. The private mortgage insurance industry returned to profit last year, after six years of hefty losses following the financial crisis. The industry is expected to grow over the next few years, and MGCI, as well as Radian, are two top picks on the recovery. Private mortgage insurers help potential homebuyers close the gap between means and ends. Their issuance has increased in line with the recovery in the housing market. Indeed, as the chart below shows,…