Mortgage insurers reported an uptick in business last month, and new applications rose to the highest level this year. But defaults also increased.
Members of the Mortgage Insurance Companies of America insured 24,161 loans for $4.8 billion during June, more than the 20,032 policies written for $3.9 billion in May, according to monthly data from the Washington, D.C.-based trade group.
It was the best month of the year for new business based on the number of policies.
Last month’s data reflected activity at MICA members Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp., PMI Mortgage Insurance Co., Radian Guaranty Inc. and Republic Mortgage Insurance Co.
A year earlier, when United Guaranty Corp.’s volume was still included, endorsements added up to 28,160 mortgages for $5.9 billion.
Volume year-to-date June 30 amounted to 116,682 policies endorsed for $27.6 billion.
It appears that July might continue the improving trend started in May; new mortgage insurance applications rose to 28,214 in June from the prior month’s 23,810. It was the strongest month this year for new applications.
Mortgage insurers’ collective book of business continued to diminish, falling to $606.3 billion from $610.8 billion on May 31. At the same point last year, primary insurance in force was $793.1 billion.
Primary insurance defaults rose to 45,573 in June from May’s 44,853. There were 65,792 defaults in June 2010.
But primary insurance cures also rose, to 38,753 last month from 36,159 in May. Cures in June 2010 were 60,337.
