Tag Archives: Mortgage Insurance

Radian Guaranty Inc. released data for primary mortgage insurance delinquencies for July, revealing growth in primary new insurance and a drop in delinquent loans.

Mortgage Insurance Companies of America (MICA) released on Friday its monthly statistical report showing that member companies reported a total of $396 billion in primary insurance in force for May. This total is down nearly $1 billion from April and is the lowest total in a year-long fall.

Under federal policy, those who are behind on their taxes are ineligible for FHA mortgage insurance unless they repay their debt or are in a valid repayment agreement with the IRS. However, the Government Accountability Office (GAO) found that FHA insured over $1.44 billion in mortgages for 6,327 borrowers who had a total of $77.6 million in federal tax debt. The watchdog group explained that the borrowers benefited from the 2009 American Recovery and Reinvestment Act, which includes a provision that increased mortgage insurance loan limits and provided an estimated $12 billion in Recovery Act First-Time Homebuyer Credits (FTHBCs) to 1.7 million individuals.

Radian Guaranty Inc. announced Monday that it is opening up new rates for high loan-to-value (LTV) loans and expanding its non-agency jumbo loan program.

Lenders now have an easy way to check mortgage insurance rates with the nation's largest private mortgage insurer, Mortgage Guaranty Insurance Corporation (MGIC). Teaming up with Mortech, Inc., a technology provider for the mortgage industry, MGIC enables lenders to check rates through its new web-based offering, MarksmanLMP. Lenders can review general rate quotes and incorporate adjustments based on specific loan qualities, ultimately leading to ""a faster loan closing process and increased profitability,"" according to a press release from MGIC.

The Federal Housing Administration (FHA) has seen its capital reserves quickly dissipate over the past few years amid a growing number of mortgage defaults and payouts on insurance claims. In an effort to bolster its capital cushion, the federal agency has announced a new premium structure for FHA-insured single-family mortgage loans. FHA will increase its annual mortgage insurance premium by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums will also increase by 0.75 percent.

The Federal Housing Administration (FHA) has announced new measures to strengthen standards for the lenders it works with - measures the agency says will help it better manage the risk that comes with insuring mortgages against default. The new regulations raise the bar in terms of lender performance when it comes to seriously delinquent and claim rates, and shores up the agency's processes for requiring lenders to cover losses from insurance claims paid on mortgages that involve fraud or don't meet FHA's underwriting guidelines.

A group convened on the steps of the South Carolina State House Thursday to express their support of homeownership and opposition to policy changes that might threaten the American Dream. The outlook expressed at the rally mirrors widespread sentiment uncovered in a recent industry survey. About three-fourths of American voters said it is ""appropriate and reasonable"" for the federal government to promote homeownership through tax incentives.

The PMI Group, Inc. says it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. According to PMI, the move is a direct result of the seizure of its subsidiaries PMI Mortgage Insurance Co. and PMI Insurance Co. by the Arizona Department of Insurance on October 20, 2011. PMI sought to overturn the regulator's seizure of its mortgage insurance operations, but that motion was denied on Friday.

An annual audit of the Federal Housing Administration's (FHA) books has concluded there is a 50-50 chance the government mortgage insurer will need a bailout from taxpayers within the next 12 months. The agency's cash reserves have been cut almost in half over the past year and its capital reserve ratio has plunged to 0.24 percent. The minimum legal limit mandated by Congress is 2 percent. News of the agency's deteriorating bottom line comes just as lawmakers are advancing a bill that would likely increase FHA's market share.