PMI companies hammered

MTG decided to return their tax savings windfall from lower corporate tax rates to mortgage borrowers today causing an industry wide hair cut of about 15% across the board:…

In MTG’s slide presentation, they show how they will supposedly retain the same profit with lower premiums. Anyone still owning ESNT or any of the other PMI companies is feeling the pain this morning.

Sometimes competition bites. But when I ran my numbers, I subtracted out the new tax rate benefit, so am confident that ESNT is still exhibiting healthy growth. We shall see. This may be a buying opportunity.