The typical industry pattern over the last few years is for there to be more cures than defaults, not only in February but in March. Those were the only two months last year where the industry’s cure/default ratio was over 100%, as reported by the Mortgage Insurance Cos. of America.
But as in most other months for Radian (and MGIC for that matter), paid claims plus rescissions and denials of coverage are the reasons why the company was able to reduce the inventory.
February started with 91,089 loans in the inventory, with 5,478 new notices of default of received.
There were just 4,885 cures, 1,944 claims paid and 24 cases where Radian either rescinded coverage or denied the claim. That brought the inventory down to 89,714.
The company also said it did $3.29 billion of primary new insurance written in February. This is down from $4 billion in January. In February 2012, it did only $2 billion of NIW.