Note 10 - Losses and LAE (Tables)

9 Months Ended

Sep. 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)	September 30, 2017		December 31, 2016
Reserves for losses by category:
Prime	$	296,885	$	379,845
Alt-A	112,033		148,006
A minus and below	78,048		101,653
IBNR and other (1)	13,085		71,107
LAE	14,687		18,630
Reinsurance recoverable (2)	7,445		6,816
Total primary reserves	522,183		726,057
Pool	18,630		31,853
IBNR and other	14,576		673
LAE	550		932
Reinsurance recoverable (2)	25		35
Total pool reserves	33,781		33,493
Total First-lien reserves	555,964		759,550
Other (3)	524		719
Total reserve for losses	$	556,488	$	760,269

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(1)

At December 31, 2016, primarily related to expected payments under the Freddie Mac Agreement. During the third quarter of 2017, the scheduled final settlement date under the Freddie Mac Agreement occurred and therefore, except for loans with loss mitigation and claims activity already in process, most of the loans subject to the Freddie Mac Agreement were removed from RIF and IIF because the insurance no longer remains in force. See “—Freddie Mac Agreement,” below for additional information.


(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:



	Nine Months Ended September 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)	145,798				152,320
Prior years	(45,331		)		(3,906		)
Total incurred	100,467				148,414
Deduct: Paid claims and LAE related to:
Current year (2)	3,639				2,725
Prior years	301,228				298,352
Total paid	304,867			(3)	301,077
Balance at end of period, net of reinsurance recoverables	549,018				815,450
Add: Reinsurance recoverables (1)	7,470				6,484
Balance at end of period	$	556,488			$	821,934

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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.


(3)	Includes the payment of $54.8 million made in connection with the scheduled final settlement of the Freddie Mac Agreement in the third quarter of 2017.