Private mortgage insurance application volume sunk to its lowest level in over a year last month, Mortgage Insurance Companies of America (MICA) reported today.
In August, a total of 65,546 PMI applications were received, down from 86,734 in July and 206,457 a year earlier.
A total of 53,476 new policies worth $10.2 billion were written last month, compared to 70,725 worth $12.3 billion in July and 197,399 worth $27.3 billion in August 2007.
In a spot of good news, primary insurance cures, in which overdue borrowers become current, increased to 41,783 during the month from 39,229 in July.
But primary insurance defaults also rose to 72,818 from 68,831 in July, the second highest level in at least the past 12 months.
Primary insurance in force remained fairly steady at $801.7 billion, up from $801.6 billion in July and $757.3 billion a year earlier.
MICA includes a number of the largest private mortgage insurers, such as AIG United Guaranty, Genworth, MGIC, and PMI.
Over the past week, both MGIC and PMI have announced they will no longer take on excess-of-loss reinsurance, arrangements in which insurance companies take the primary loss when borrowers default.
And today, Genworth announced it is considering a number of strategic alternatives for its U.S. private mortgage insurance business, including a possible spin-off.
(photo: monkeymyshkin)
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