Private Insurance Activity Turns Down in September

New private mortgage insurance hit a roadblock in September, according to ""Mortgage Insurance Companies of America's"":http://www.privatemi.com/news/index.cfm (MICA) monthly statistical report.

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MICA's member companies (""Genworth Mortgage Insurance Corporation"":http://mortgageinsurance.genworth.com/, ""Mortgage Guaranty Insurance Corporation"":http://www.mgic.com/, and ""Radian Guaranty Inc."":http://www.radian.biz/page?name=HomePage) reported more than $398.6 billion in primary insurance in force for the month. That volume is up from August's $397.5 billion.

While insurance in force increased, new insurance slowed down. According to the report, dollar volume of primary new insurance written on newly originated conventional mortgages totaled $10.1 billion in September, with 37,554 borrowers using private insurance to buy or refinance homes.

Both numbers were down from August, when an estimated 43,949 borrowers took out approximately $11.3 billion in new insurance.

There was also a monthly decrease in applications. MICA members reported receiving 40,353 private mortgage insurance applications, down from 46,891 in August.

While September's decline in activity may mark a slowdown, 2012 has still been a year of marked recovery for the industry. New insurance and applications were both elevated year-over-year: MICA members wrote about $4.9 billion in insurance in September 2011 and received 27,939 applications.

Defaults increased slightly, with MICA members reporting 25,049--about 300 more than in August. Cures fell, meanwhile, dropping to 18,968 from 20,612 in August.