Tag Archives: Mortgage Insurance

Republic Mortgage Insurance Corporation (RMIC) faces a $100,000 fine and enhanced supervision by the Consumer Financial Protection Bureau (CFPB) for allegedly offering illegal kickbacks to lenders in the form of captive reinsurance policies in exchange for business referrals, according to an announcement from the CFPB. Such activities violate federal consumer laws and have become a target area for the bureau.

Member firms of Mortgage Insurance Companies of America (MICA) issued a combined 37,501 new mortgage insurance policies with a dollar volume of $9.6 billion in September. Private mortgage insurers' new business for the month represents a drop from the 46,051 new policies issued in August and tracks a drop in August application volume of more than 5,000.

As the government works toward GSE reform, Keefe, Bruyette & Woods (KBW) says reform for the Federal Housing Administration (FHA) should also be a top concern. Though FHA has raised premiums, sold off distressed loans, and reduced its share of low down payment loans to counter its shrinking mortgage insurance fund, KBW's analysts underscore the need for longer-term measures of change, and they say reform legislation currently on the table is unlikely to pass.

The Federal Housing Administration (FHA) will be accepting a bailout of more than $1 billion to make up for losses sustained from the agency's legacy books and its reverse mortgage program. Following reports last week that FHA's financial situation would require a Treasury draw in the neighborhood of the Obama administration's $943 million forecast, Commissioner Carol Galante revealed in a letter to the Senate Banking Committee that the agency is taking an appropriation of approximately $1.7 billion.

Radian Guaranty Inc. reported a decline in primary mortgage insurance delinquencies in August. The monthly release, based on statistics reported to Radian from loan servicers, showed delinquent inventory fell by 11,715 (15.2 percent) over August to end the month at 65,427. The majority of the monthly decline came from a master transaction agreement with Freddie Mac which removed its exposure to 9,756 loans that were delinquent as of December 31, 2011 (in addition to 4,586 re-performing loans).

Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., has entered into a master transaction agreement with Freddie Mac which the company says eliminates its claim exposure on 9,756 delinquent mortgage loans and 4,586 re-performing loans. The agreement involves a group of 25,760 first-lien mortgages held by Freddie Mac that were insured by Radian and were delinquent as of December 31, 2011. The agreement spells out future claim payments, loss mitigation activity, and insurance coverage of these loans.

Genworth Financial, Inc., announced Wednesday that the company is strengthening the senior leadership team of its U.S. Mortgage Insurance (USMI) unit with the addition of two key executives. Paul Gomez was recently promoted to COO of USMI, and George Reichert was named chief information officer (CIO).

Mortgage Insurance Companies of America (MICA) reported its members issued 50,575 policies to start the year's second half, up from 49,666 in June and 39,192 in July 2012. Dollar volume of primary new insurance written totaled $13 billion, marking the fifth straight month of gains. (Despite a decline in policies issued in June, dollar volume still saw an increase to $12.3 billion). After falling in June, the number of private mortgage insurance applications ticked up in July, climbing to 53,502--indicating another potential increase in activity in the near future.

Homeowners whose homes are located in designated flood zones are required to purchase flood insurance, and others in areas where natural disasters are common may also be required to insure against those risks. However, CoreLogic economists recently asked if that is enough to guard against these risks. In particular, they asked, are homeowners more likely to default when natural disaster strikes? The answer, in short, is ""yes.""

National Mortgage Insurance Corporation (National MI) announced Wednesday it will insure about $5 billion in residential mortgages in its first risk transfer transaction with Fannie Mae.