Contact: MICA (202) 682 2683
Email: pat@micadc.org
MICA Issues Monthly Statistical Report: Adjustment to Defaults and Cures Due To Lender Reporting Error
Traditional New Insurance Written Jumps 11.7% in Twelve Months
WASHINGTON, D.C. May 30, 2008 – Mortgage Insurance Companies of America (MICA) today released its monthly statistical report for April which includes a one-time adjustment to the number of defaults and cures and also notes an 11.7% increase in new insurance written year-over-year.
As a result of a major lender’s change to its methodology for recording delinquencies, and to how it reports them to MICA’s members, there was a sharp increase, to 73,880, in reported defaults in April. The increase includes both newly reported defaults for the month, as well as previously unreported defaults by this lender.
MICA’s members reported 39,584 cures in April. This statistic also reflects the above noted change in reporting defaults.
Suzanne C. Hutchinson, Executive Vice President of MICA, said, “While the change in reporting methodology by a major lender has resulted in an increase in reported delinquencies, it is important to note that this is a one-time adjustment. Overall, the market is returning to fundamentals. The year-over-year increase of 11.7% in new insurance written reflects that return to quality in the marketplace.”
MICA reported the following other key PrivateMI industry metrics for the month of April:
- PrivateMI Applications Received. The number of PrivateMI applications received in April by MICA members was 128,243 or 19.9% less than 160,139 received in March.
- Dollar Volume. The dollar volume of primary new insurance written on newly originated 1-to-4 family conventional mortgage loans totaled $19,778.2 million in April, a 3.5% decrease from March’s $20,495.1 million. Traditional primary new insurance totaled $19,449.5 million, and bulk primary new insurance totaled $328.7 million in April. Year-over-year, the April 2008 total of traditional primary new insurance written represented an increase of 11.7% from the April 2007 total of $17,416.6 million.
- Primary Insurance-In-Force. Primary insurance in-force totaled $855,721.4 million in April, a 22.9% increase compared with the $696,464.4 million reported for the same month a year ago. The statistics in this report include data from the following MICA member companies: AIG United Guaranty, Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Co., Republic Mortgage Insurance Company and Triad Guaranty Insurance Corporation.
MICA is the trade association representing the private mortgage insurance industry. Its members help loan originators and investors make funds available to home buyers for low down payment mortgages by protecting these institutions from a major portion of the financial risk of default.
MICA’s members have helped nearly 2 million families during the past twelve months save money by buying or refinancing a home with less than the traditional 20 percent down payment. PrivateMI premiums are now tax deductible for many borrowers who purchase or refinance a home.