MTG MGIC Investment Corp

Quiet corner of the market getting hit hard today: housing-finance plumbing. Mortgage insurers $MTG down 6.9%, $NMIH down 8.5%, $ESNT down 6.2%, plus RDN and ACT down 4-5%. Title insurers too: $STC down about 9%, $FNF about 5.6%, FAF about 4.7% (intraday, around 2:30pm ET). Zoom out and it's not a one-day thing: on a 1-month view the group is down roughly 9-25%, STC worst at about 25%. FNF and STC are now trading below their previous 52-week lows. What I can verify: FHFA has been busy this month. Sept 15 Pulte pushed easier PMI cancellation (MI stocks dropped that day too), and Sept 29 brought the single pricing grid that crushed FICO. What I couldn't find is one clean headline for today's leg. Anyone seen what triggered it? New FHFA/GSE news, or just the market repricing everything tied to Fannie/Freddie policy risk?

FHFA Director and Fannie Mae and Freddie Mac Chairman Bill Pulte said Fannie Mae will adopt Freddie Mac’s policy allowing lenders to proactively contact borrowers who may qualify to cancel private mortgage insurance (PMI) because of home-price appreciation or loan amortization. Under current Fannie Mae rules, borrowers must initiate the cancellation request themselves, while Freddie Mac permits lenders to directly notify eligible homeowners. Pulte said mortgage insurers generate substantial profits and urged them to pass savings on to consumers when appropriate. The policy change could allow more homeowners to eliminate PMI payments once they have sufficient equity in their properties, potentially reducing demand for mortgage insurance coverage. PMI is generally required on conventional mortgages when borrowers make down payments below 20%, and borrowers can typically request cancellation once they reach 20% equity, subject to Fannie Mae and Freddie Mac guidelines. $MTG $RDN