April Strong Month for Mortgage Insurers’ New and Old Business

April was the best month of 2013 so far and the best month since last October in terms of new insurance written for the members of the Mortgage Insurance Cos. of America.

The three members of the trade group—Genworth, MGIC and Radian—had NIW volume of $11.36 billion in April, compared with $10.04 billion in March, $11.46 billion in October 2012 and $7.1 billion in April 2012.

MICA’s NIW data include Home Affordable Refinance Program loans. When the individual companies release data, they treat HARP loans not as NIW but as modifications of existing coverage.

Even better, the 49,018 of new applications received during April tops March’s 43,278, October 2012’s 46,045 (the best month until now of the prior 12) and April 2012’s 33,013.

Primary risk-in-force has now grown for 11 consecutive months, increasing by $1.8 billion over March to $403.9 billion.

Still, the MICA data only paint a partial picture of industry activity. United Guaranty, which based on its 10-Q data finished 1Q13 second in terms of NIW; CMG, the joint venture between PMI and CUNA Mutual which is being sold to Arch; and the two newest underwriters, Essent and National MI; all do not belong to MICA. Nor do any of the three companies in run-off, which besides PMI includes Triad and RMIC.

The cure-default ratio for April is 112.7%, another good sign for the industry (and one that was hinted at in MGIC’s and Radian’s own monthly statistics releases), as it breaks the recent pattern of only February and March having more cures than new notices of default.

March’s cure/default ratio was 138.5%, while April 2012’s was 91.6%

There were 19,501 cures and 17,309 defaults in April, compared with 23,983 cures and 17,298 defaults in March.