The volume of private mortgage insurance written fell to a record low in August, according to data from the Mortgage Insurance Companies of America (MICA).
The group, which includes the likes of MGIC, Genworth, Radian, PMI, and other heavy hitters, wrote just $5.77 billion in new insurance during the month, down from $7.5 billion a month earlier and $10.2 billion a year ago.
The previous low was back in November 2008, when the group wrote just $5.83 billion in new mortgage insurance.
And things don’t appear to be getting any better, with just 35,358 applications for PMI received during the month, down from 44,532 in July and 65,546 a year ago.
The data even includes loan originations from the Home Affordable Refinance Program from July onward.
“Mortgage insurers are part of the solution to turn around the housing market, helping troubled borrowers facing foreclosure by working with loan servicers, investors and lenders to modify and refinance home loans,” said Suzanne C. Hutchinson, Executive Vice President of MICA, in a release.
“These efforts by the industry are helping to bring stability back to the housing market.”
The one bit of good news is that primary insurance defaults slipped to 91,854 in August, down from 94,571 a month earlier, but far exceeding the 72,818 seen a year ago.
Primary insurance cures, where past due borrowers become current, slipped to 52,939 during the month, down from 53,399 in July, but up from 41,783 a year ago.
Private mortgage insurance is required for single loans above 80 percent loan-to-value; high LTV loans fueled the housing boom, but have certainly fell out of favor in recent years as the banks and lenders tightened requirements.
Related Topics:
