Cures Outnumber Defaults at MGIC in February

Mortgage Guaranty Insurance Corp. had more 1,461 cures than new notices of delinquency in February which is more in line with the general industry trend in recent years in this area. Previously, Radian reported that in February new notices outpaced cures.

When combined with paid claims and loans where MGIC rescinded or denied coverage, the company’s inventory of delinquent loans fell by 4,722 loans.

The month started with 137,847 loans in the inventory, to which was added 9,071 newly reported delinquencies. But 10,532 loans cured, plus MGIC paid the claim on another 3,107 loans and rescinded or denied coverage on 154 loans, bringing the inventory down to 133,125.

During the fourth quarter, MGIC came to a settlement with Freddie Mac and the company said it was near a settlement with Countrywide and one other lender.

Last Wednesday the company priced equity and debt offerings which could help to reduce the risk-to-capital ratio which was driven up by the settlements.

MGIC had new insurance written of $1.9 billion in February, down from the $2.2 billion reported in January but up from $1.3 billion written in February 2012.