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Enact Holdings is a private mortgage insurance company. It helps homebuyers get conventional mortgages with smaller down payments by protecting lenders if the borrower defaults. Its core product is mortgage insurance, which it mainly sells to mortgage lenders and servicers, not directly to homebuyers.
The company makes money by charging premiums on the insurance policies it writes and by earning investment income on the cash it holds to pay future claims. Its customers are lenders that originate or service residential mortgages, and the underlying end market is U.S. home lending. When lenders use Enact’s insurance, they can make loans to borrowers who do not have large down payments while still reducing some of their own credit risk.
What makes Enact’s business model distinct is that it sits between the mortgage market and the credit risk on the loan. It does not originate mortgages or own houses; it underwrites insurance on loans already made by lenders. That gives it a niche role in the housing finance system, tied to credit quality, home buying activity, and the level of insured mortgage lending.
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Stock intrinsic value is the real worth of a company's stock, based on its financial health and performance.
Instead of looking at the stock's current market price, which can change due to people's opinions and emotions, intrinsic value helps us understand if a stock is truly a good deal or not.
By focusing on the company's actual financial strength, like its earnings and debts, we can make better decisions about which stocks to buy and when.
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