Private mortgage insurance volume continued its slide in July as defaults crept higher and cures slowed, Mortgage Insurance Companies of America (MICA) reported.
During the month, just 86,734 PMI applications were received, down from 90,886 in June and 180,546 a year earlier.
A total of 70,588 borrowers used PMI to refinance or purchase a home during the month, down from 74,779 a month earlier and 177,585 in July 2007.
New insurance written during the month totaled $12.3 billion, down from $13.7 billion in June and $26.5 billion a year earlier.
Meanwhile, defaults crept up to their highest point in three months following a steady decline since April, with 68,831 borrowers falling behind during the month.
Conversely, the number of borrowers making good on late payments slowed during the month, with only 39,229 primary insurance cures during the month, down from 43,214 in June.
MICA includes a number of the largest private mortgage insurers, including AIG United Guaranty, Genworth, MGIC, PMI Group, and Republic Mortgage Insurance Co.
Two weeks ago, PMI Group agreed to sell its Australian mortgage insurance subsidiary to QBE Insurance Group Limited.
And just last week, MGIC announced it was tightening guidelines on new borrowers with pending sales in an effort to possibly clamp down on so-called buy and bail borrowers.
(photo: snorri7)
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