Note 10 - Losses and LAE (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block]

The following table shows our reserve for losses and LAE by category at the end of each period indicated:



(In thousands)	March 31, 2017		December 31, 2016
Reserves for losses by category:
Prime	$	362,804	$	379,845
Alt-A	140,543		148,006
A minus and below	96,373		101,653
IBNR and other (1)	70,651		71,107
LAE	17,551		18,630
Reinsurance recoverable (2)	7,680		6,816
Total primary reserves	695,602		726,057
Pool	28,453		31,853
IBNR and other	603		673
LAE	822		932
Reinsurance recoverable (2)	28		35
Total pool reserves	29,906		33,493
Total First-lien reserves	725,508		759,550
Other (3)	661		719
Total reserve for losses	$	726,169	$	760,269

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(1)	Primarily related to expected payments under the Freddie Mac Agreement.


(2)	Represents ceded losses on captive reinsurance transactions, the QSR Transactions and the Single Premium QSR Transaction.


(3)	Does not include our Second-lien premium deficiency reserve that is included in other liabilities.

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table presents information relating to our reserve for losses, including our IBNR reserve and LAE but excluding our Second-lien premium deficiency reserve, for the periods indicated:



	Three Months Ended March 31,
(In thousands)	2017			2016
Balance at beginning of period	$	760,269		$	976,399
Less: Reinsurance recoverables (1)	6,851			8,286
Balance at beginning of period, net of reinsurance recoverables	753,418			968,113
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	51,447			56,171
Prior years	(4,316		)	(13,504		)
Total incurred	47,131			42,667
Deduct: Paid claims and LAE related to:
Current year (2)	42			65
Prior years	82,046			127,606
Total paid	82,088			127,671
Balance at end of period, net of reinsurance recoverables	718,461			883,109
Add: Reinsurance recoverables (1)	7,708			8,239
Balance at end of period	$	726,169		$	891,348

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(1)	Related to ceded losses recoverable, if any, on captive reinsurance transactions, the QSR Transactions and the Single Premium QSR Transaction. See Note 7 for additional information.


(2)	Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.