Private mortgage insurance application volume fell roughly 15 percent from April to May, and nearly 50 percent from a year ago, according to a report released today by the Mortgage Insurance Companies of America.
MICA’s members reported that 89,365 borrowers used private mortgage insurance to purchase or refinance a home in May, compared to 198,958 borrowers a year earlier.
Meanwhile, the number of private mortgage insurance applications received during the month fell to just 109,210, down from 128,243 in April and 208,596 in May 2007.
The dollar volume of primary new insurance written on newly originated residential mortgage loans totaled $15.5 billion in May, down from $19.7 billion in April and $30.2 billion in May 2007.
Primary insurance in-force totaled $860.3 billion in May, up 20.8 percent compared with the $712.1 billion reported for the same month a year ago.
But as mortgage defaults continue to rise, mortgage insurers, much like banks and lenders, continue to adjust their risk appetite, reducing loan-to-values, demanding better documentation, and issuing fewer policies in hot spots like California and Florida.
The mortgage insurance group said 67,967 borrowers were 60 or more days late in May, down from 73,880 in April, but far exceeding nearly all other monthly totals over the past year.
Primary insurance cures, or situations where borrowers behind on payments get back on track, totaled 40,687, up from 39,661 in April, but far below the 50,585 reported in March.
MICA includes a number of the largest mortgage insurance companies, including Triad Guaranty, who recently stopped writing new policies as a result of increased defaults and related losses.
(photo: deivis)
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