As a result of one lender’s adjustment in methodology for recording delinquencies, defaults on privately-insured mortgages jumped roughly 20 percent in April.
Mortgage Insurance Companies of America (MICA) vice president Suzanne C. Hutchinson was quick to point out that it was a one-time adjustment, and noted that the increase in insurance written is a testament to the soundness of the industry.
That said, the number of private mortgage insurance applications received last month by MICA members fell 19.9 percent to 128,243, down from 160,139 received in March.
That was the lowest total in at least the last 12 months, with the next lowest total 138,679 applications received in January.
Hutchinson, of course, was referring to the 11.7 percent year-over-year increase in new insurance written, which totaled $19.8 billion in April, down from $20.5 billion in March, but up from $17.4 billion a year ago.
Primary insurance in force totaled $855 billion in April, a 22.9 percent increase from the $696 billion reported a year ago.
Oh yeah, and as a result of that new methodology, primary insurance cures, or delinquent insured mortgages that returned to good standing, plummeted to 39,584 in April, down from 50,585 in March.
The good news is that number still exceeds the 34,347 cures reported in April 2007.
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.
(photo: qmnonic)
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