Mortgage Insurance Volume Peaks in October
The members of the Mortgage Insurance Cos. of America had their best month of the year in October, with volume approaching $11.5 billion, up from $10.1 billion in September and $5.1 billion for October 2011.
It makes four consecutive months where the three members of MICA—Genworth, Mortgage Guaranty Insurance Co. and Radian—topped $10 billion in primary new insurance written.
MICA numbers do include policies written for HARP 2.0 refinancings. The individual companies when announcing their volume consider HARP refis as a modification of existing coverage and not NIW.
It also makes five months in a row where primary insurance-in-force for MICA members has increased, and for the three companies has gone back above the $400 billion. Not included in any MICA data are United Guaranty and Essent, both of which are not members. The three companies in run-off, Triad, PMI and RMIC, are also not members.
The cure/default ratio for October is 81.1%, with 20,068 cures and 24,749 defaults reported. This is an improvement over September’s 75.7% and October 2011’s 79.6%.
In other mortgage insurance industry news, MGIC Investment Corp. said all conditions to Freddie Mac approving MGIC Indemnity Corp. as a limited mortgage insurer through the end of next year have been satisfied.
This includes transferring $100 million in capital from the parent company to its primary MI underwriter Mortgage Insurance Guaranty Corp., and formally entering into the previously announced $267.5 million settlement over pool insurance policies between Freddie Mac and MGIC.
MGIC said it will pay Freddie Mac the first $100 million of that settlement by Dec. 11 and pay the rest in 48 equal installments starting on Jan. 2, 2013.
Separately, Radian Group Inc., has made an offer to exchange its 5.375% Senior Notes due June 15, 2015 for new 9% Senior Notes June 15, 2017, plus additional cash consideration in certain circumstances.
Approximately $250 million of the old notes are outstanding. The offer is set to expire on Dec. 31.