Business Fell to $4.9B for Mortgage Insurers in January

Private mortgage insurance companies backed home loans to the tune of $4.9 billion in January, a decline from $6.9 billion last year, as the industry continues to reel from sapped business and credit downgrades.

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""Mortgage Insurance Companies of America"":http://www.privatemi.com/ (MICA) found $399 billion in insurance-in-force for member companies Genworth Mortgage Guaranty Insurance Corp., Radian Mortgage Insurance Co., and Republic Mortgage Insurance Co.

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The trade group said that some 21,904 borrowers made a purchase or loan refinance with their private policies, while the companies received 24,097 in total applications in January.

The three companies reported 29,348 defaults for insured loans in January, together with 23,728 cures mortgages.

The mortgage insurance industry continues to suffer from record-high mortgage delinquencies and defaults, a lingering consequence of the financial crisis and overexposure by lenders and borrowers to the real estate market.

In November last year PMI Group, Inc. filed bankruptcy in response to a series of lost battles for the insurer, with hopes that Chapter 14 would better allow it to provide for claims payments and back policyholder interests.

The Arizona Department of Insurance had earlier prohibited the company from writing new insurance, offering another sign of trouble for the industry.

A spokesperson for MICA did not immediately return request for comment.