Private mortgage insurers had more new notices of default to contend with during the month of May than they had loan cures. It was the first time in four months that defaults outnumbered cures.
""Mortgage Insurance Companies of America"":http://www.privatemi.com/ (MICA) says its five members reported 44,853 defaults and 36,159 cures in May. The group's cure/default ratio for the month came in at 80.6 percent.[IMAGE] [COLUMN_BREAK]
The ratio was 106.1 percent in April, 143.9 percent in March, and 112.2 percent in February. Every other month for the past year it's been below the 100 percent balance, indicating a higher number of defaults than loan cures.
MICA is the trade association representing the private mortgage insurance industry. Its members include Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Co., Radian Guaranty, and Republic Mortgage Insurance Company.
These companies help loan originators and investors make mortgage funds available to homebuyers who have less than 20 percent for a down payment by offering these institutions insurance protection against a portion of the financial risk of default. The cost of the mortgage insurance is borne by the borrower.
MICA members reported that 20,032 borrowers used private mortgage insurance to buy or refinance a home in May. The dollar volume of primary new insurance written on newly originated conventional mortgage loans totaled $3.9 billion during the month.