Last month, mortgage insurance volume fell to the lowest level on record. The outlook is for more record activity. But mortgage insurance defaults were lower than a year ago.
Mortgage insurers wrote 14,378 policies for $4.2 billion last month, tumbling from 19,989 policies for $5.1 billion in December, the Mortgage Insurance Companies of America reported today. January 2009’s volume was 59,569 policies for $7.1 billion.
Last month’s activity was the lowest level of activity — based on the number of policies and the dollar volume — since at least 2000 based on an analysis of data by MortgageDaily.com.
New business is headed lower based on a decline in new mortgage insurance applications to 19,438 from 26,284 in December.
The totals reflected activity from MICA members Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp., PMI Mortgage Insurance Co., Radian Guaranty Inc., Republic Mortgage Insurance Co. and United Guaranty Corp.
MICA said primary insurance in force was $851.0 billion on Jan. 31, lower than $863.4 billion a month earlier and $949.3 billion a year earlier.
Meanwhile, primary insurance defaults ascended to 98,685 from December’s 94,651. Defaults were lower, however, than 106,482 in January of last year.
Primary insurance cures were 61,195, edging up from 61,032 the prior month and higher than 51,095 the prior year.
