As has been the case for mortgage bankers, new quarterly business fell at MGIC Investment Corp. Also declining was the rate of late payments. But the book of business expanded.
Before taxes, the Milwaukee-based holding company earned $180 million during the three months ended March 31, according to its first-quarter earnings report.
Income improved from $174 million in the first-three months of last year. But the mortgage insurer experienced deterioration versus the $245 million earned in the final-three months of 2017.
“We continue to benefit from the current conditions of the employment and housing markets, favorable demographics that are helping fuel the purchase mortgage market, and a higher interest rate environment,” Patrick Sinks, chief executive officer of MGIC and operating subsidiary Mortgage Guaranty Insurance Corp., said in the report.
During the first-three months of this year, MGIC wrote $10.6 billion in primary new insurance. Business declined from $12.8 billion in the fourth-quarter 2017 but was up from $9.3 billion in the first-quarter 2017.
Primary insurance in force finished last month at 1,026,797 loans for $197.5 billion. The book of business expanded from 1,023,951 loans for $194.9 billion three months earlier
and 997,650 loans for $183.5 billion one year earlier.
Delinquency concluded the latest quarter at 4.02 percent. The rate tumbled from 4.55 percent at the end of last year and at the same point last year.
