Let face it – Americans have no love for debt collectors, don’t like it when mortgage insurance is forced upon them, and we always like to laugh at Paris Hilton. The Radian, MGIC, C-BASS dance is almost as good. MGIC posts a loss, C-BASS was almost worthless, lawsuits began and the crying towel sopped up the mortgage blues. The black eye came when this Paris Hilton-like stupidity caused people to look at these companies. Somewhat anonymous to the average American before that, Americans discovered a link between the three, a link to debt collector Sherman Financial, and much more.
Nobody likes it when there might be a spy in the house. Radian, the mortgage insurer whose sale to rival MGIC Investment Corp. collapsed last month, has dropped almost ten percent as their auditor declined to renew their contract and their new auditor might tell them more bad news. Sorry guys, but suing somebody because they didn’t buy you is not classy. When one plays with fire expect to get laughed at if something blows up.