MICA: Private MI Use Drops in November
Mortgage Insurance Companies of America (MICA) reported late last week that 103,934 borrowers used private mortgage insurance to buy or refinance a home in November. The number of borrowers using private MI in November was 15.9 percent lower than the October total of 123,626. The use of private mortgage insurance is widely expected to increase in 2007 due to new legislation, recently signed by President Bush, which will make premiums for mortgage insurance deductible starting with the 2007 tax year. The number of private MI applications received in November by MICA members was 109,590 or 15.4 percent less than the 129, 612 received in October. The dollar volume of primary insurance written on newly originated 1-to-4 family conventional mortgage loans totaled $17.8 billion in November, a 5.1 percent decrease from the previous month's $18.7 million. Traditional primary insurance totaled $13.0 billions and bulk primary insurance totaled $4.7 billions in November. In that same month, primary insurance in-force totaled $654.5 billion. MICA members reported 34,309 cures and 45,325 defaults during November. The number of defaults was down from 46,219 in October, and from 50,653 one year ago. The statistics in the report include data from the following member companies: AIG United Guaranty, Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, PMI Mortgage Insurance Co., Republic Mortgage Insurance Company and Triad Guaranty Insurance Corporation. MICA is the trade association representing the private mortgage insurance industry.