Private mortgage insurance application volume slipped for the third month in a row as tighter lending guidelines weighed on the industry.
A total of 90,896 private mortgage insurance applications were received in June, down from 109,210 in May and 207,021 a year earlier, according to data from Mortgage Insurance Companies of America.
And just 74,256 borrowers used PMI to refinance or purchase a home during the month, compared to 89,355 a month earlier and 164,928 in June 2007.
“The return to realistic and responsible lending standards is being reflected in the housing market,” said Suzanne C. Hutchinson, Executive Vice President of MICA.
“The mortgage insurance industry remains very active in providing home loans to help borrowers who are seeking secure and predictable financing during these uncertain times.”
Primary new insurance written during the month totaled $13.7 billion, compared to $15.5 billion in May and $30 billion during the same period last year.
Primary insurance defaults were largely unchanged at just under 68,000, while primary insurance cures, where borrowers catch up on payments, increased six percent from May to 43,214.
MICA includes a number of the largest private mortgage insurance companies, such as AIG United Guaranty, Genworth, MGIC, PMI Mortgage Insurance Co., and others.
(photo: hokkey)
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