Loans outstanding that are insured by private mortgage firms have been on the decline every month for three years now as new policies issued were down 15 percent last year. Looking at just last month, outstandings were off from November, and defaults on insured loans jumped.
Members of the Mortgage Insurance Companies of America wrote 266,690 policies last year for $59.640 billion, data released Friday from the Washington, D.C.-based association indicated.
Volume dropped from 317,037 policies written for $70.171 billion a year earlier.
However, the numbers are distorted because data prior to February 2011 included United Guaranty Corp., while PMI Mortgage Insurance Co. was no longer included after August 2011.
MICA members Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp., Radian Guaranty Inc. and Republic Mortgage Insurance Co. issued 23,538 policies for $5.817 billion just during December.
The prior month’s business was 25,074 policies for $5.568 billion, while 31,879 policies were written for $8.438 billion in December 2010.
January’s activity likely continued the downward trajectory based on new mortgage insurance applications received, which fell to 26,036 from November’s 27,970.
Also continuing to decline was primary insurance in force. MICA said the figure fell to $467.552 billion from $471.480 billion a month prior and $752.973 billion as of Dec. 31, 2010.
Primary insurance in force fell each month last year, as was the case in 2010 and 2009.
Mortgage insurers did see an increase, however, in primary insurance defaults, with 38,481 reported for December versus 35,188 the previous month. Defaults decreased from December 2010 when the number was 63,519, though those figures reflected United Guaranty and PMI.
Looking at just the final four months of the year, which excluded activity form United Guaranty and PMI, defaults had fallen in October and November before bouncing back up in December.
Primary insurance cures fell to 27,301 from 31,420 the previous month. Cures were 50,707 in the same month during 2010.
