Private mortgage insurance volume sunk further in October as defaults continued to rise, the Mortgage Companies of America (MICA) said today.
A total of 55,085 applications for private mortgage insurance were received during the month, down from 62,209 in September and 183,659 in October 2007.
Meanwhile, the number of policies issued fell to just 42,167 on a dollar volume of $7.7 billion, down from 173,949 policies on $25 billion during the same period a year ago.
At the same time, primary insurance defaults continue to rise, climbing to 80,071 in October, up from 76,776 in September and 59,308 a year ago.
Primary insurance cures, where delinquent borrowers get back on track, increased to 43,211 during the month, up from 41,400 in September, but still below levels seen earlier this year.
MICA includes a number of the largest private mortgage insurance companies, including AIG United Guaranty, Genworth, MGIC, PMI, and Republic.
Tightened guidelines along with rising defaults have put a strain on mortgage insurers, with many of the related companies’ shares trading in the $1-$2 range.
Earlier this year, major insurer Triad Guaranty announced it would halt the writing of new policies as a result of the ongoing crunch.
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