Shares of Genworth Financial Inc. (NYSE:GNW), Radian Group Inc (NYSE:RDN), and MGIC Investment Corp.(NYSE:MTG) declined Friday, as the mortgage-insurance sector fell on a draft of Private Mortgage Insurance Eligibility Requirements released by the government-sponsored enterprises that would force substantial capital raises.

Genworth responded to the proposal with a late-Thursday statement saying while it appreciates the effort to boost the financial strength of the sector and expects its business to meet the draft version of the guidelines, “these guidelines are multi-faceted and we expect the review and compliance process to be a significant undertaking for the GSEs, the industry, and other key constituents.”

Radian also issued a response. “Radian fully supports the need for strong counterparties to Fannie Mae and Freddie Mac, and the need for well-defined standards against which private mortgage insurers should be measured,” said Radian Guaranty President Teresa Bryce Bazemore. Still, the company noted the proposed requirements “reflect limited initial input from Radian” and said it will provide additional commentary to the Federal Housing Finance Agency during the public-comment period that is expected to end Sept. 8.

“Among these areas, Radian will note that the proposed capital requirements are more onerous than Radian’s historical default experience suggests would be needed to withstand a severe stress event,” the company said, adding that it will also outline how the proposed requirements “are inconsistent with the FHFA’s stated goal of expanding access to mortgage credit and reducing taxpayer risk by increasing the role of private capital in the mortgage market.”

GNW was down 5.8% at $16.07 recently, in a 52-week range of $11.55 to $18.74. RDN declined 3.8% to $14, in a 52-week range of $11.94 to $16.24. MTG, meanwhile, tumbled 9.4% to $8.37, in a 52-week range of $5.89 to $9.50.

Get Free Updates and Stock Alerts!

*We only send one email per week