October Mortgage Insurance Activity Increases

Mortgage Insurance Companies of America (MICA), the trade group representing the largest private mortgage insurance (PMI) companies has issued a statistical report of PMI activities for the month of October. 

Member companies which include Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, Radian Guaranty, and Republic Mortgage Company, wrote policies during the month covering $5,149 million in conventional mortgage loans, an increase of 223.2 million over the value of policies written in September.  The policies covered 26,293 borrowers, up from 24,885 in September, and were the result of 29,508 applications filed.  There were a reported 37,547 defaults and 29,871 cures in October.

The member companies have $474,278 million in primary insurance in force in October, down from $477,186 million in September.  Prior to September when the company was seized by Arizona regulators and subsequently filed bankruptcy, PMI Corporation was included in MICA statistics.  In August the total insurance in force among members including PMI was $598,641million.

Private mortgage insurance is required by lenders when the downpayment on a conventional mortgage is less than 20 percent of the loan amount.  PMI protects and reimburses the lender in the case of a default by the borrower.