Mortgage insurance defaults increased for the sixth consecutive month to top 100,000 in December, Mortgage Insurance Companies of America (MICA) reported.
A total of 105,110 borrowers with private mortgage insurance fell behind on their loans during the month, considerably higher than the 82,878 seen a month earlier.
Primary insurance cures, where delinquent borrowers become current, increased to 49,749 from 43,918 a month earlier, the highest level since March.
A year ago, there were a total of 64,384 primary insurance defaults and 34,813 cures.
Last month, new PMI written totaled $7.2 billion, up from $5.8 billion in November, but nowhere close to the $25.8 billion reported a year earlier.
Applications totaled 61,597, up from 39,098 in November, but just over a third of the 154,637 seen in December 2007.
A total of 46,605 borrowers actually used PMI to purchase a home or refinance a loan during the month, up from 29,387 in November, but well below the 143,602 policies issued a year ago.
Much of the recent increase can probably be attributed to the re-inclusion of Radian Guaranty data, which rejoined MICA in November (reflected in December 2008 data onward).
MICA includes most of the largest private mortgage insurers, including AIG United Guaranty, Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Co., Radian Guaranty and Republic Mortgage Insurance Company.
Triad Guaranty had been a member before seizing its mortgage insurance business last summer amid rising defaults and escalating losses.
(photo: ricardovilella)
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