It’s been nearly a year since mortgage insurance volume has been this low.
January’s activity was 21,896 policies written for $6.4 billion, according to data released Monday by the Mortgage Insurance Companies of America. The last time activity was this slow was in February 2010, when 14,924 policies were written for $3.6 billion.
The trade group determines volume based on data submitted by its members including Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp., PMI Mortgage Insurance Co., Radian Guaranty Inc., Republic Mortgage Insurance Co. and United Guaranty Corp.
Business sank from 31,879 policies written for $8.4 billion a month earlier but was better than the 14,378 policies issued for $4.2 billion during January 2010.
New policies are bound to be even lower in February given the decline in applications last month to 25,789 from December’s 37,140.
MICA reported that primary insurance in force was $747.9 billion as of Jan. 31, lower than yearend 2010 when the balance was $753.0 trillion. Insurance in force 12 months earlier was $851.0 billion.
The Washington, D.C.-based organization said that primary insurance defaults were 64,687 last month, higher than 63,519 at the end of December. But defaults have improved from 89,850 in January 2010.
Primary insurance cures, meanwhile, edged up to 50,820 from 50,707 and stood at 61,195 a year prior.
