MICA Numbers Indicate Hope for MI Industry, Housing

For the third consecutive month, the private mortgage insurance industry reported that its member firms had more new cures than defaults, a sign, perhaps, that the delinquency picture is improving in a sustainable way. According to figures compiled by the Mortgage Insurance Companies of America, insurers had 66,170 cures and 60,656 defaults in April for a cure/default ratio of 109%. In March, the ratio was 123% and in February the reading was 118%. For the fourth consecutive month, the number of applications for new policies increased. Also, for the third consecutive month the dollar volume of primary new insurance written increased. However, both figures are down considerably from a year ago. In April, the nation's seven MI firms wrote $4.8 billion of primary new insurance compared to $4.5 billion in March, and $7.8 billion in April 2009. Since July 2009, MICA has included loans originated through the Home Affordable Refinance Program in its findings. MI firms received 29,948 applications in April, compared to 28,720 in March and 60,947 in April 2009. The number of applications received in April is the most since November 2009, and likely is tied to two federal tax credits expiring. However, the amount of primary insurance-in-force continues to decline: $812 billion compared to $932 billion a year ago.