Question-and-Answer Session
(Operator instructions) And our first question comes from the line of Steven Eisman from FrontPoint. Please go ahead.
Steven Eisman – FrontPoint
Hi you may have discussed at this about for a second could you talk about the level of recessions this quarter what the trend is been how are factoring that into your reserving policies?
Sanford A. Ibrahim
I will ask Bob to respond for that question Steve.
Robert Quint
Clearly the trend is up in terms of denials and rescissions. And that is always factored into our reserves; however, the increased level that we have been seeing that we have been seeing most recently has impacted the reserves because we’ve obviously we have increased the expectation that trend will continue.
Steven Eisman – FrontPoint
And what are the rescission levels as of this quarter?
Robert Quint
We never disclosed the exact rates we are just talking about trends and the fact that the trends are up.
Steven Eisman – FrontPoint
Okay, thank you.
Operator
Our next question comes from the line of Donna Halverstadt with Goldman Sachs. Please go ahead.
Donna Halverstadt – Goldman Sachs
Thank you, good morning. I had one quick question on the tax payments to subs. You have the estimate for October ’09 and for October 2010 you’ve mentioned $300 million does that mean the that t previous range of 300 to 478 is no longer range?
Sanford A. Ibrahim
Bob.
Robert Quint
Yeah that the range is still accurate that 478 was the maximum the 300 is our best estimate based on our projection.
Donna Halverstadt – Goldman Sachs
Okay, and then I also had a question with respect to all the discussions being held with the folks in DC. You made the comment that private mortgage insurance is really been the most effective way to credit and enhance certain types of mortgages but as I think about our forum particularly at the GSC’s do you have any concern that they might decide the banks keeping participations are buying back loans is something they prefer to see happen in might of everything that’s happened over the last two years as opposed to the private Mortgage Insurance can if maintaining its preferred role in the market.
Sanford A. Ibrahim
But clearly it is lot of decision that remain to be made and wash it and now we can go by at this point is what our customers which is mortgage insurance and they need the mortgage lender industry community tell us what we hear from the GSC’s and what we pick up from other conversions and all of those to-date have shown us strong support for the mortgage insurance business and the value we bring that’s not surprising even that the industry has paid I think around $15 billion and claims, which is a sum that somebody else would have to meet do come up with maybe the taxpayers sustains if the GSC’s had taken that exposure the GSC’s have been consistently very supportive of the role of the mortgage insurance industry and you’ve seen that record in several of their comments I commented on the mortgage lender community and just to give an idea of how much risk we bear that somebody else would have to absorb its roughly 180 to $200 billion, so while we cannot comment on the could happen in the future I feel based on what we hearing today you believe that their strong support for continued Mortgage Insurance presence. Teresa, would, based on your interaction with the industry and with Washington and others would you like to add to my comments.
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