Comment by derangedHorse

Margins being slim doesn't mean much as long as insurance companies see continuing operations as profitable. I'd like to see this model stress tested until more insurance companies pull out. This would cause reductions in the housing market from the increased insurance prices and subsequent mortgage reduction, and would lead to more compartmentalized insurance prices and risk approximations between high and low-risk homes.

Either that or a barrage of government policies which will make things worse for everyone and continue the US economy's descent into the death spiral.