MGIC Reports Increased Business, Fewer Bad Loans

Mortgage Guaranty Insurance Corporation (MGIC) the nation's largest private mortgage insurance company, issued its Operational Summary for the month of May on Friday.  The Summary shows continuing improvement in the company's inventory of delinquent loans and a slight increase in new business, from $1.7 billion of new primary insurance written in April to $2.0 billion in May.

At the beginning of the period there were 156,698 loans in that inventory, down from 160,473 at the beginning of April and 175,639 at the beginning of this year.  Activity during the month included 10,907 notices of new delinquencies, 3801 claims paid, 8537 cures, and 294 rescissions or denials.  By the end of May the inventory was down to 154,973 loans, a net reduction of 1,725 during the month and 20,666 since January 1.

Comparable activity in April included 10,134 new notices, 3,967 claims paid, 9,717 cures, and 236 rescissions or denials for a net reduction of 3,775 loans during the month.

At the end of the first quarter of 2012 (March 31), the MGIC, the principal subsidiary of MGIC Investment Corporation, was providing insurance covered for 1.1 million mortgages, a total of $169.0 billion of in force primary insurance.