The Conseco Finance servicing fee restructuring delivered its first visible blow to the industry last week. Double-A rated guarantor Radian Asset Assurance, acting as reinsurer in a deal wrapped by Radian Insurance, announced it would likely pay claims amounting to $111 million tied to a privately placed 2000 vintage Conseco manufactured housing deal.

During an investor conference call last week, Radian Group's CEO Frank Filipps said that the servicing fee change "has cost the waterfall about $44 million to date. That $44 million could have been in front of our loss, in a situation that did not result in a shift in subordination."

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