Analysts at KBW Inc.'s Keefe, Bruyette & Woods Inc. said they feel the problems involving foreclosure documentation will not have an impact on title insurers.

"In the event the foreclosure in question did not produce a subsequent resale into the market, we see no exposure for the industry," wrote Nathaniel Otis and William Clark in a report Thursday. "In the event that the property was resold into the market through a legitimate real estate transaction, we believe the new owner [and title policy] would be protected by the fact that all parties entered the transaction in good faith. We would also point out that the issue, in our opinion, is one where the servicer is responsible for any financial settlement and, therefore, the foreclosed upon party would deal directly with the servicer and not deal with the new owner."

In a separate report, the KBW analysts said they are positive on the mortgage insurance sector going into earnings season and beyond, as delinquency trends remain favorable and market share traction could provide positive momentum for the industry.

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