Business was barely changed for the second consecutive month at the nation’s private mortgage insurers. With new government applications down by nearly a third last month compared to just a 3-percent decline in the private sector — a shift in market share is likely during November. Meanwhile, defaults on privately insured loans eased.
October volume was 31,998 policies written for $7.0 billion, the Mortgage Insurance Companies of America reported Tuesday. The report reflects activity at 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.
The prior month’s business was 32,554 policies written for $7.0 billion, while August saw 32,215 mortgage insurance policies issued for $6.4 billion.
It was a similar story for the Federal Housing Administration, which reported earlier this month that its 125,218 endorsements during October for $24.4 October were virtually unchanged from September.
Business likely slowed in November for private mortgage insurers, as new applications fell to 38,705 last month from September’s 39,846. But a bigger decline in FHA applications — to 175,421 from September’s 255,938 — suggests changes in market share might favor private mortgage insurers during November.
In October 2009, MICA members wrote 24,339 policies for $4.8 billion.
From Jan. 1 through Oct. 31 of this year, volume was 252,165 policies for $54.1 billion.
As of Oct. 31, primary insurance in force was $765.9 billion, lower than $772.9 billion one month earlier and $886.1 billion one year earlier.
MICA reported that primary insurance defaults improved. The number fell to 64,450 in October from the previous month’s 65,481. A year prior, primary insurance defaults numbered 91,135.
Primary insurance cures eased to 56,887 from September’s 57,720. During the same month last year, cures were 51,920.
