National Mortgage Insurance Corp. lifted grew its quarterly business and grew its book of business, while its parent company swung to a profit.
During the three-month period that came to a close on June 30, 2016, income before income taxes at the mortgage insurer came in at $2 million.
Details about the Emeryville, California-based organization’s results were included in parent NMI Holdings Inc.’s second-quarter earnings report.
National M.I. Chairman and Chief Executive Officer Bradley Shuster noted in the report that the profitable second quarter was a milestone for the company.
Earnings swung from a first-quarter 2016 loss of $4 million and an even bigger second-quarter 2015 loss of $10 million.
There was $5.838 billion in new insurance written during the latest three-month period.
Business grew from $4.254 billion
in the first quarter and $2.549 billion in the second-quarter 2015.
Second-quarter 2016 refinance share was 28 percent. The share was reduced from 31 percent the prior quarter and 36 percent a year prior.
Primary insurance was in force on 100,547 policies for $23.624 billion.
The book of business climbed from 79,700 policies for $18.564 billion as of March 31 and 31,682 policies for $7.190 billion as of mid-2016.
The default rate was 0.1 percent as of June 30, 2016, the same as three months earlier and up from 0.0 percent a year earlier.
National M.I. reported that it had approved master policies in place with 1,061 customers as of mid-2016. The total was just 842 at the same point last year.
“The company also announced today that it has entered into a quota share reinsurance agreement with a panel of third-party reinsurance providers,” the report stated. “The company expects that Fannie Mae and Freddie Mac will allow full credit under the private mortgage insurer eligibility requirements for risk ceded under the agreement.”
