As explained in "Freddie Mac Significantly Undervalued When Strong U.S. Mortgage market Is Considered," mortgage insurance appears to be a surprisingly fruitful sector of the economy today. Of course, back in 2007, many were enamored by the seemingly risk-less profits mortgage insurance brought as the only major risk insurers face is an increase in defaults across the United States. To the demise of many investors, this "black swan" event occurred and brought the industry to its knees.
Today the opposite seems to be true. Following a massive wave in mortgage defaults which led