Mortgage Insurance Companies of America (MICA) reported today that 127,338 borrowers used private mortgage insurance in January, down 11.3 percent from December’s total of 143,602.
The number of private MI applications received in January by MICA members also fell, slipping 10.3 percent to 138,679 from December’s total of 154,637 received.
It was the lowest monthly total since February 2007, when applications received numbered just 123,059.
However, the total amount of primary insurance in force increased to $832 billion in January, up from $820 billion in December and $672 billion a year ago.
More importantly, the number of insured borrowers in default 60 days or greater rose to 68,950, up from 64,384 in December, and a 31 percent jump from the 52,528 in the same period a year ago.
On a positive note, primary insurance cures, or delinquent insured mortgages that returned to good standing, rose to 35,468 in January from 34,813 a month earlier after falling in December, according to the report.
Private mortgage insurance is required for home loans when a borrower puts less than 20 percent down on a property.
Mortgage insurance can be avoided if homeowners break up the mortgage into a combo loan, so long as the first mortgage does not exceed 80 percent loan-to-value.
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.
AIG reported a $5.3 billion fourth-quarter loss today, causing shares to fall $3.23, or 6.44%, to $46.92 in afternoon trading on Wall Street.
Shares of MGIC were off 48 cents, or 3.01%, to $15.48, while PMI Group was down 18 cents, or 2.31%, to $7.62.
See all the numbers here.
(photo: boklm)
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