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PRIVATE MORTGAGE INSURANCE ACTIVITY UP DESPITE CONCERNS
mortgage insurance (PMI) keeps rising, according to Mortgage Insurance Companies of America (MICA). MICA's member companies—which include
The number of borrowers using private
Genworth Mortgage Insurance, Mortgage Guaranty Insurance, and Radian Guaranty— reported a total of $397.5 billion in primary insurance in force as of August, an increase from $396.4 billion in July. The total primary insurance in force received
a boost from reported month-to-month increases in dollar volume, certificates issued, and applications. MICA member companies reported a
total of $11.2 billion in new PMI written on newly originated conventional mortgage loans in August, a step up from $10.1 billion in July. Dollar volume on new insurance has risen steadily each month since the start of the year. In addition, members estimated that
43,949 borrowers used private MI to buy or refinance a home during the month, continuing July's upward trend. Meanwhile, the number of private MI applications received was an estimated 46,891 in August, up from 42,229 a month prior. MICA members also posted an increase
in cures, reporting 20,612 during the month of August. The only statistic that fell from July was the number of defaults—24,731 in August— indicating a positive trend among distressed mortgages. The good news comes at a tempestuous
time for an industry whose future is uncertain as guidelines evolve. Moody's announced in late September it is continuing its review of Genworth and its mortgage insurance subsidiaries, which may result in a downgrade. In its announcement, Moody's said it
may confirm its current rating of Genworth's mortgage insurance businesses if the investors service sees an improvement in the rate of new delinquencies or cures and if a regulatory framework is provided that "improves the market opportunity for private mortgage insurers."
KNOW THIS
The total number of vacant housing units in the U.S. grew by more than 4.5 million from 2000 to 2010, an increase of 44 percent, according to the Census Bureau.
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