Defaults on privately insured mortgages were up 37 percent in December compared with the same period a year earlier, according to a report from Washington-based Mortgage Insurance Companies of America.
The number of insured borrowers 60 or more days late on their mortgage payments rose five percent from November to a record 64,384 last month, up considerably from 46,921 in December 2006.
Additionally, cures, or delinquent insured mortgages that returned to good standing, fell to 34,813 in December from 37,137 a month earlier, according to the report.
It should be noted that despite the increase in defaults, mortgage insurance sales volume has surged over the past year as more mortgage lenders require borrowers to buy coverage.
The group, which is made up of six of the seven largest U.S. mortgage insurers less Radian, wrote 141,588 policies for homeowners last month, up 57 percent from a year earlier when 90,417 policies were issued.
The number of private mortgage insurance applications received in December by MICA members was 154,637, a 10.7 percent decline from the 173,259 received in November.
MICA’s data is pulled from AIG United Guaranty, Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Co., Republic Mortgage Insurance Company and Triad Guaranty Insurance Corporation.
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