Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mike Grondahl - Northland Securities.
Mike Grondahl - Northland Securities
Could you give us a sense of the growth in fraud rescissions and modifications from Q2 to Q3, just to we can get some sense of the order of magnitude?
Al Zucaro
Chris, why don’t you take that?
Chris Nard
Sure, there are two questions in there, that was the rescissions and the modifications. The rescission activity was up quarter-to-quarter, simply as a result of the higher risk loans that are more subject of having misrepresentations and we never refer to fraud, but its misrepresentation, moving through the delinquency pipelines.
The modifications, predominantly what we are all referring to these days are the hand modifications, those have started to make some dramatic increases off this; the programs really start to get off of the ground. Now those have two pieces that I think you guys all know about, which is one, the initial modification then the borrower has to go through period where they produced the documentation to finalize the modification. Then they have to make three consecutive payments before the Mod becomes official.
So we would expect to see those continue to increase, although the ultimate performance of those really won’t be seen until likely six months after the initial mod has been performed, but again that is a positive on the horizon.
Mike Grondahl - Northland Securities
Chris, could you give us some sense though of the magnitude, I mean was the increased 20% in rescissions, just more tangible than a high level comments?
Chris Nard
Yes, I don’t have it right in front of me, but it was not dramatic, I mean, it was an increase that you would anticipate is the high risk books particularly in ‘06 and ‘07 kind of age through the pipeline.
Al Zucaro
I think we can say, Chris correct me if I’m wrong, I think we can say that we had a greater benefit if you will, from the rescissions in the first half of this year than we did the third quarter standing alone, is that right?
Chris Nard
Yes, I mean it’s a small change. It was not a dramatic change either way.
Operator
Your next question comes from Mathew Goetzinger - Fiduciary.
Mathew Goetzinger - Fiduciary
I’m just looking at the 214% claims ratio in MI and I guess, I’m a little bit reluctant to kind of view it is inline with the overall trends as you said Al, and I guess I’d say that within the context of, it’s the highest in the fourth quarter of last year?
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