It’s been almost five years since members of the Mortgage Insurance Companies of America have written as much new business as they did in May. Performance on insured loans, however, deteriorated.
MICA members insured 52,545 mortgages for $12.033 billion last month, according to data reported Friday. Business improved from April, when 46,393 policies for $$11.373 billion were written.
New activity has soared for the sector compared to the same month last year, when 35,431 home loans were insured for $8.658 billion.
May activity reflected data from
Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp. and Radian Guaranty Inc.
MGIC previously reported that it insured $2.8 billion in loans for the month, while Radian reported $4.56 billion in new business — suggesting that Genworth’s share was around $4.7 billion.
The last time this much new business was written by MICA members was in July 2008, when mortgage insurers generated 70,725 new policies for $12.299 billion.
Even more significant was that the 2008 performance data included activity from PMI Mortgage Insurance Co., Republic Mortgage Insurance Co. and United Guaranty — though Radian’s numbers were excluded.
June activity is on track to continue rising based on new M.I. applications, which rose to 55,535 last month from 49,018 in April.
During the first five months of 2013, M.I. production amounted to 211,419 policies written for $53.123 billion.
MICA said that primary insurance in force was $405.694 billion as of May 31, increasing from $403.891 billion at the end of the previous month. At the same point in 2012, the book of business stood at $395.582 billion.
Moving on to insured loan performance, primary insurance defaults totaled 19,558 during May, worsening from 17,309 defaults a month earlier but better than 23,687 a year earlier.
Primary insurance cures, meanwhile, fell to 17,372 from 19,501 and were 18,397 in May 2012.
