Mortgage insurance companies insure loans with down payments of less than 20%. In effect, the private mortgage insurance industry serves the growth segment in the mortgage finance industry, a niche that should provide dependable growth for years to come.

In 1994, we estimate, more than 30% of all purchase mortgage transactions involved mortgages with down payments of less than 20%. This is considerably higher than the levels in 1993 and 1992 and explains why industry insurance in force continued to expand so robustly - 15% in 1994 - even while the housing and mortgage finance industry slowed so dramatically in 1994.

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