Quarterly new business at Radian Guaranty Inc. jumped to the highest level in nearly two years, while delinquency plunged to the lowest level in at least a decade.
During the three months ended June 30, Radian wrote $11.751 billion in
new mortgage insurance, according to its earnings report.
The last time the mortgage insurer’s new business volume was this good was in the third-quarter 2013, when $13.79 billion in new insurance was written.
Business improved compared to the first three months of this year, when Radian wrote $9.385 billion.
A similar increase was made versus the second quarter of last year, when new business amounted to $9.322 billion.
From Jan. 1 through June 30 of this year, new insurance written by Radian amounted to $21.136 billion.
Radian said it finished last month with 872,870 policies for $172.692 billion primary insurance in force.
The firm’s book of business inched up from 874,225 units for $172.141 billion three months earlier and grew from 845,534 insured loans for $164.989 billion a year earlier.
Delinquency on Radian’s primary mortgage insurance was 4.32 percent as of mid-2015.
The past-due rate dropped 31 basis points from the end of the first quarter and has retreated 146 BPS from the second-quarter 2014.
Based on the oldest data maintained by Mortgage Daily, delinquency hasn’t been this low since at least 2005.
(After the publication of this story, a Radian spokeswoman confirmed that the delinquency rate was last this low in the third-quarter 2003, when it stood at
4.30 percent.)
The Philadelphia-based company said
pre-tax income from continuing operations tumbled to $80 million from the first quarter’s $137 million. Income was also down from $93 million in the second quarter of last year.
