For four months now mortgage insurers have pushed volume higher, and it looks like more of the same is ahead. Even defaults slipped.
Last month, 27,301 mortgage insurance policies were written for $5.7 billion.
That was more than the 22,917 policies issued in July for $4.9 billion.
The increase in August came despite the demise of PMI Mortgage Insurance Co., which said last month that it would stop writing new business.
The dollar volume of new business has risen each month since April, when $3.7 billion in mortgages were insured.
The findings were reported Friday by the Mortgage Insurance Companies of America. Volume reflects activity at MICA members Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp., PMI, Radian Guaranty Inc. and Republic Mortgage Insurance Co.
Volume was down from 32,215 policies endorsed for $6.4 billion in August 2010. But the year-earlier total included activity at United Guaranty Corp., which was pulled from the reports in February.
Year-to-date Aug. 31, mortgage insurance written amounted to 166,900 policies for $38.2 billion.
It appears that volume will continue rising based on new M.I. applications, which grew to 30,702 in August from the previous month’s 26,723.
The trade group said that primary insurance in force fell to $598.6 billion from July’s $601.7 billion. The balance was $780.3 billion in August 2010.
Primary insurance defaults edged lower to 48,187 in August from 48,785 a month earlier. Defaults have tumbled from 63,882 a year earlier.
Primary insurance cures rose to 39,627 from July’s 35,905 and were 58,094 in August of last year.
