Not long after shuttering its 40-year-old trade group, the mortgage insurance industry has launched a new association. The formation comes as new business in the sector is diminishing.
The Mortgage Insurance Companies of America discontinued operations earlier this year. At the time of its demise, the organization had just three members.
Membership at MICA, which was founded in 1973, had dwindled from six member companies as of the end of 2010.
Stepping in to fill the vacuum is the U.S. Mortgage Insurers, which announced its launch on Monday.
American International Group Inc.-subsidiary United Guaranty Corp., which abandoned MICA in February 2011, was not listed among USMI’s members.
The co-chairs of USMI are Genworth Mortgage Insurance President and Chief Executive Officer Rohit Gupta and Essent Guaranty Executive Vice President Adolfo Marzol.
“As policymakers focus on the need to create a strong, stable housing finance system, USMI companies are strongly positioned to serve the housing finance market and are actively engaged in efforts to ensure that MI remains a reliable foundation for the future housing finance system,” Gupta said in today’s news release.
The new Washington, D.C.-based trade group opens for business as new activity at mortgage insurers is plunging. Radian reported $1.90 billion in new policies during February, the slowest month since September 2011, while MGIC said Monday that it wrote $1.5 billion in primary new insurance last month, its worst month since February 2012.
In addition, both Genworth and United Guaranty reported declines in quarterly activity.
However, Radian and MGIC have seen delinquency fall to the lowest levels in years, while loan performance also improved at Genworth and United Guaranty.