New business slowed and could drop further at private mortgage insurance companies. In addition, defaults were higher. But the sector managed to grow its book of business.
The volume of mortgages insured during September worked out to 37,501 policies written for $9.575 billion.
The last time business was this slow for the industry was in February, when 34,665 home loans were insured for $9.187 billion.
Historical data from the Mortgage Insurance Companies of America indicate that business totaled 46,051 policies for $11.655 billion in August and 37,554 policies for $10.070 billion in September 2012.
In the first nine months of this year, 395,212 mortgages were insured for $99.682 billion
MICA member Mortgage Guaranty Insurance Corp. previously reported $2.5 billion in new business during September, while Radian Guaranty Inc. said it insured $3.8 billion. That put business at the only other MICA member, Genworth Mortgage Insurance Corp., at around $3.3 billion.
The downward trajectory likely continued into October based on the number of new applications received, which fell to 39,148 during the most recent month from 48,038 in August.
But despite the slowing business, primary insurance in force increased to $417.303 billion as of Sept. 30 from $415.506 billion a month earlier. A year earlier, outstanding policies were in place on $398.645 billion in mortgages.
At 20,609, primary insurance defaults inched up from 20,008 in August but were lower than 25,049 in September 2012.
Primary insurance cures, meanwhile, fell to 17,048 from 18,729 and were also off from 18,968 a year prior.
