MGIC tightens again

Mortgage insurer MGIC updated their guidelines again. Basically they loped off the max LTV for purchases in AZ, CA, FL, NV by 5% and now max out at 90%. I think they won't drop the LTV anymore in the bubble zones but will start restricting DTI's to give themselves more of a cushion and insulate them from the most debt ridden borrowers:


On a different note, I've noticed several flips come on the market lately that originated at either the courthouse foreclosure auction or the REDC type auction. What was interesting about these flips was the purchase price was low enough for an investor to attempt a flip, still have a profit margin and be the lowest priced listing nearby. If the servicers start pushing volume during the fall and winter months things could get interesting. I notice Hudson & Marshall is starting to do some absolute auctions in other states as well. I think July will represent the sales volume peak of 2008 and prices will start accelerating downward again through fall and winter.