Note 10 - Losses and LAE (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2017		December 31, 2016
Reserves for losses by category:
Prime	$	318,169	$	379,845
Alt-A	124,477		148,006
A minus and below	85,283		101,653
IBNR and other (1)	69,620		71,107
LAE	15,492		18,630
Reinsurance recoverable (2)	7,341		6,816
Total primary reserves	620,382		726,057
Pool	29,099		31,853
IBNR and other	658		673
LAE	843		932
Reinsurance recoverable (2)	30		35
Total pool reserves	30,630		33,493
Total First-lien reserves	651,012		759,550
Other (3)	579		719
Total reserve for losses	$	651,591	$	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:



	Six Months Ended June 30,
(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)	88,906			100,999
Prior years	(24,721		)	(8,438		)
Total incurred	64,185			92,561
Deduct: Paid claims and LAE related to:
Current year (2)	1,027			632
Prior years	172,356			217,740
Total paid	173,383			218,372
Balance at end of period, net of reinsurance recoverables	644,220			842,302
Add: Reinsurance recoverables (1)	7,371			6,077
Balance at end of period	$	651,591		$	848,379

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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.