Back in 10/2007, the WSJ reported that mortgage insurers were covering lot of home loan losses and getting hit pretty hard with losses/payouts.
MGIC Investment Corp reported a net loss of $372 million and likely be 2009 before it became profitable (like it wasn't before and won't charge extra in the future, right..)
Old Republic International was planning to get hit too. In fact, seven of the largest mortgage insurers (including PMI Group, Radian Group, and Triad Guaranty Inc.) were to report losses on loans up to 35% of the loan's value.
Note: The WSJ article mentioned the housing downturn would bottom out in 3Q08...I guess that's why they call it "a guess".
Update 8-11-10: MGIC posted its first profit in 12 quarters last month as the cost of claims declined.
Oh, and here's an interesting twist - even if your lender doesn't file a deficiency judgment, maybe the mortgage insurance company will - see this article.
Check out more information about deficiency judgment in each state at http://www.foreclosurefish.com/blog/index.php?id=994
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