Radian Group Inc. reported a record quarter for new business. In addition, the mortgage insurer’s book of business expanded, and delinquency declined.
Pretax income during the three months that ended on Sept. 30 was $127 million at Radian. Earnings tumbled from $157 million three months earlier.
The Philadelphia-based organization revealed the numbers Thursday, along with other operational and financial results, in its third-quarter earnings report.
Income improved, however, from $116 million in the year-earlier period.
Radian wrote $15.656 billion in primary new mortgage insurance during the most-recent three-month period.
Business leapt from the second quarter, when $12.921 billion was written, and the same period last year, when there was $11.176 billion written.
“We set a record for Radian in the third quarter, writing the highest volume of new flow mortgage insurance business ever in our 40-year history, adding to our existing high-quality insurance in-force book,” Radian Chief Executive Officer S.A. Ibrahim stated in the report.
For the first-nine months of 2016,
insurance written totaled $36.648 billion.
Refinance share climbed to 22 percent in the third quarter from 18 percent in the prior period.
Primary insurance in force as of the end of last month was 896,927 loans for $181.165 billion.
Radian’s book of business expanded from 885,406 mortgages for $177.672 billion as of mid-2016 and 879,841 units for $174.866
billion as of the same date last year.
Prime mortgages accounted for $172.178 billion of the Sept. 30, 2016, book, while Alt-A loans made up $5.363 billion, and A-minus-and-below loans represented $3.624 billion.
The mortgage insurer reported a default rate of 3.29 percent. Delinquency improved from 3.37 percent as of June 30, 2016, and 4.08 percent as of Sept. 30, 2015.
