Billionaire John Paulson’s hedge fund firm is among the top five investors in MGIC and Radian, with combined stakes valued at about $300 million. Paulson & Co. also controls 1.8 percent of Genworth Financial Inc. (GNW:US), which sells life insurance and long-term care coverage in addition to mortgage guarantees.
MGIC and Radian have said the proposed private mortgage insurer eligibility requirements, or PMIERs, are too strict and threaten to make home loans less affordable. Essent and NMI have praised the rules, saying the industry needs the financial strength to withstand another housing crash.
