Private mortgage insurance volume slipped for the fourth straight month in October, with just $4.8 billion in new insurance written, according to the Mortgage Insurance Companies of America (MICA).
During the month, 24,339 borrowers used private mortgage insurance to purchase or refinance a home, up from 22,710 a month earlier, but nowhere close to the 42,167 a year ago.
Applications received were also up month-to-month, 31,880 compared to 30,221 in September, but again far from the 55,085 seen in October 2008.
Meanwhile, primary insurance defaults held steady at 91,135, beating last year’s total of 80,071.
“Mortgage insurers continue to pay claims as they come due and aid the economic recovery by helping troubled borrowers keep their homes and prevent foreclosures,” said Suzanne C. Hutchinson, Executive Vice President of MICA.
“In the first three quarters of 2009, mortgage insurers completed more than 145,000 loan workouts.”
Unfortunately, cures (where previously delinquent loans become current) slipped lower during the month, totaling 51,920, down from 59,750 a month earlier.
In the past year and change, mortgage insurers have tightened requirements to limits losses going forward, slashing loan-to-value (LTV) limits and upping credit score requirements.
Private mortgage insurance is generally required on first mortgages with a LTV exceeding 80 percent.
(photo: robertthomson)
Related Topics:
