Mortgage insurers are thriving: Credit Suisse

In the wake of the nationwide probe into foreclosures, “mortgage insurers are thriving,” Douglas Harter of Credit Suisse told CNBC in the video above and they were up more than 10 percent over last month, he said. “They don’t have to pay the claim until the foreclosure happens so a delay in the foreclosure process will delay time until a claim payment, allowing them to hold onto their money longer,” Harter explained. Even if the probe reveals that there was massive fraud, “the insurers could probably rescind the insurance policy on that mortgage and put it to the banks,” Harter added. He also noted that PMI is his top pick as a reliable mortgage insurer.