Manatt Partner Discusses Future of Mortgage Insurance with M Report
"Mortgage Insurance: Past, Present & Future"
M Report
September 21, 2013 - Manatt's Ellen Marshall, a partner in the firm's Financial Services & Banking Practice, spoke to M Report about the recent rise in the mortgage insurance business.
The publication reports that mortgage insurance has a lengthy history, which includes one complete collapse and a more recent near collapse that almost wiped out the private industry for a second time. Now the crisis has passed and more growth is expected in the future. Financial reports starting showing a recovering industry in the summer, and there has also been an increase in new mortgage insurance companies. In addition, one company plans to file an IPO later this year.
Marshall told M Report that she recommends Fannie Mae and Freddie Mac move into the mortgage insurance business. This would enable the government to support housing without the same risk it had before. She said that the GSEs already have the necessary analytical tools and market knowledge to transition to this type of business.