MGICs Delinquent Inventory Down 20% in 2012
Mortgage Guaranty Insurance Corp. said approximately 20% of the loans in its inventory of delinquencies were removed from the portfolio during 2012.
Of its December activity the company explained 941 loans in default cured during the month as a result of the aggregate loss limit on the policies with the investor being reached. However, none of those cures were related to the company’s settlement with Freddie Mac.
Still because of those cures, new notices of default were only slightly higher than the number of cures, 10,314 versus 10,150. When adding in 3,297 loans where MGIC paid the claim and another 175 cases were coverage was rescinded or denied, the inventory of delinquent loans fell to 139,845 from 143,153 at the start of December. On Jan. 1, 2012, MGIC had 175,639 delinquent loans in the inventory, meaning 35,794 loans were removed during 2012.
During December, MGIC had $2.2 billion of primary new insurance written, similar to November. For the fourth quarter, the company’s NIW is approximately $7 billion.