Both Mortgage Guaranty Insurance Corp. and Radian Guaranty had more cures than new notices of delinquency in April, which could be another sign that these companies are starting to turn the corner regarding their legacy books of business.
Mortgage Insurance Cos. of America data the last few years have shown a trend that while in February and March cures outpace defaults, by April it switches back. Last April’s cure/default ratio was 91.6%, with 20,678 cures and 22,569 defaults. MGIC and Radian are two-thirds of MICA’s current membership.
MGIC’s inventory of delinquent loans started April at 126,610. It received 7,785 new notices of delinquency. These were more than offset by 9,238 cures, 2,942 paid claims and 160 instances of rescission or denial. As a result, the inventory fell to 122,055 as of April 30.
At Radian, an 85,109 delinquent loan inventory received 4,230 new defaults. But there were 4,763 cures, 2,303 paid claims and 696 rescissions and denials, bringing the inventory down to 81,577.
In its 1Q13 results press release, Radian had disclosed
