Increases In Number Of New Mortgage Insurance Applications

The number of new residential mortgage insurance applications actually increased in June from May’s totals, yet it was still the second smallest in the past seven months.

Similarly, the number of mortgage defaults also rose by a slight margin from May to June even as cures dropped through the same timeframe. Compared to a year ago, the defaults and cures remain higher despite drops in defaults back in December and January. The cures are also lower than they were between February and March.

Mortgage insurers received 56,271 new applications in the month of June. This makes the number up 1.5% from May but 38% below June 2008. The amount of new insurance that was provided increased 11% to a total of $7.65 billion in June, but it had dropped 44% from June of 2008.

Total mortgage value covered in June protected by PMI was $915.1 billion. Total insurer exposure came to $209.6 billion. Those mortgages that were covered by still went into default, or became at least two months past due, increased 0.5% to 88,362 from May to June. Compared to 2008 figures, the amount was increased by 30%.

The number of defaulted mortgage that were made current after being two months or more overdue dropped 1.3% to 51,908 and they were 20% more than the previous year.

The entire point of mortgage insurance is to provide lenders protection against losses that result from defaults. It is a requirement for those mortgages that were obtained with less than 20% as a down payment.

Most of the figures mentioned here were obtained by Mortgage Insurance Companies of America. The group collected additional data from United Guaranty, Genworth Mortgage Insurance, Mortgage Guaranty Insurance Corp, PMI Mortgage Insurance, and Republic Mortgage Insurance Co.