Despite the loss of multiple mortgage insurers, the sector managed to turn in its best performance in five years. Policies in force have expanded for seven consecutive months.
Members of the Mortgage Insurance Companies of America wrote 36,543 mortgage insurance policies in December. That was fewer than the 39,220 loans insured during the previous month.
But on a dollar basis, premiums were earned on $10.691 billion in loans, more than the $10.407 billion in policies written during November.
Volume represents activity at MICA members Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp. and Radian Guaranty Inc.
Based on a second consecutive monthly decline in new M.I. applications, to 38,915 in December from the prior month’s 41,952, January likely slowed for new mortgage insurance business.
In December 2011, when operational data from Republic Mortgage Insurance Co. was still included, 23,538 policies were written for $5.818 billion.
For all of last year, 419,729 mortgages were insured for $106.421 billion.
Business was better than during 2011, when 266,690 policies were written for $59.640 billion. It was also the best year since 2008, when 971,595 policies were written for $162.2 billion.
The year-over-year gain was even more impressive given that some months in 2011 included business from former MICA members PMI Mortgage Insurance Co., Republic and United Guaranty Corp.
Primary insurance in force finished 2012 at $400.696 billion, up from $400.462 billion in November. The book of business has increased each month since May 2012, when the total was $395.582 billion.
The total has retreated, however, from $467.553 billion as of Dec. 31, 2011.
Primary insurance defaults grew to 24,585 in the final month of 2012 from 23,485 in November but were lower than 38,481 a year earlier.
Primary insurance cures inched up to 20,048 from 19,801 and were 27,301 in the final month of 2011.
