Primary new mortgage insurance slipped to $4 billion, according to MGIC Investment’s (MTG) August operational summery of its insurance subsidiaries for its primary mortgage insurance.
This is slightly down from $4.5 billion in July and June.
August began with 66,121 loans in its primary delinquent inventory and ended with 64,805 delinquencies on file.
The drop this month is much greater than July, which started with 66,357 loans in its primary delinquent inventory and ended slightly lower with 66,121 delinquencies on file.
MGIC posted 6,242 new notices, which was offset by 6,212 cures, 1,279 paid-off mortgages and 67 recessions and denials.
These numbers are boding well for the mortgage insurer, according to a note from Compass Point Research & Trading.
“August new insurance written (NIW) was in line with our expectations and credit performance was better than expected. August primary NIW of $4B is in line with our projected monthly run rate for 3Q, although, the 14% YoY increase is below the 25% YoY increase in NIW for the month of July. Although, July tends to be the strongest month of the quarter,” the note stated.
“In terms of credit performance, the fact that the ending delinquent loan balance of 64,805 is already below our projected ending delinquent balance for 3Q due to higher than expected cures and lower new default notices, is a positive. Overall, the market should view MTG’s August operating data favorably,” it added.