On July 29, the House Financial Services Subcommittee on Capital Markets held a hearing on the private mortgage insurance industry. The hearing is a part of a series the committee is holding on reforming the nation’s housing finance system, which will continue when Congress returns from the August recess in September.

In his opening statement, Subcommittee Chairman Paul Kanjorski praised industry, compared to others in the sector, but added that he was concerned that the industry could still lose as much as $50 billion as a result of the housing downfall. He added that more should be done to require carriers to cover a greater loss during a default and to do more to prevent foreclosures.

Some Republicans on the subcommittee indicated the industry should play a larger role and private carriers are virtually nonexistent for mortgages with loan-to-value ratios that are primarily insured through the Federal Housing Administration (FHA).