Cures Outpace Defaults for MIs
There were more cures than new notices of default in February for the nation's private mortgage insurers, continuing a trend of recent years, according to data compiled from members of the Mortgage Insurance Cos. of America.
Over the past few years, the three-month period between February and April has seen these companies have a cure/default ratio over 100%, whereas for the rest of the year, new notices of default are greater than the number of cures reported.
February's cure/default ratio was 113.5%, with 27,694 cures and 24,405 defaults reported. One year prior, the ratio was 112.2%, while in January it was 80.9%.
What is even better news for the private mortgage insurance industry is that the group's members wrote $5.4 billion of primary new insurance in February, up from January's $5.0 billion and February 2011's $4.2 billion. One of the reasons this is a good sign is because one year ago, there were two other active underwriters of private mortgage insurance, PMI and RMIC. whose data is included in MICA's numbers.
United Guaranty and Essent are not members of MICA and their volumes are not included in any of the data.
The primary insurance in force for the three MICA members (MGIC, Radian and Genworth) is $397.7 billion, down from $399.2 in January.