Insured Defaults up 10%
[Update 1: includes clarification of Radian's influence on year-on-year figures] Defaults on privately insured US mortgages are up nearly 10% percent from one year ago. However, defaults fell more than 3% in April from March, by way of comparison. It marked the third consecutive month of decline in primary insurance defaults, since the 106,482 defaults seen in January. After falling more than 6% in March from February, primary insurance defaults slipped to 81,171 in April, according to data released Friday by the Mortgage Insurance Companies of America (MICA). The trade association -- representing data from AIG United Guaranty, Genworth Mortgage Insurance, Radian Guaranty and Republic Mortgage Insurance -- reported primary insurance in force slipped slightly to $932.04bn in April, from $937.06bn in March. MICA's member companies wrote $7.82bn in new insurance on newly originated mortgage loans in the month, insuring servicers against losses in the event of default. “In addition to insuring low down payment mortgages for new purchases, the mortgage insurance industry is working closely with borrowers, lenders and government agencies to modify existing loans and prevent foreclosures,” MICA's executive vice president, Suzanne Hutchinson, said in a media statement. MICA's member companies reported 58,587 cures in April, a 16% slip from last month but still holding 47.7% above the volume of cures seen in the same time last year. An MICA spokesperson told HousingWire comparing year-on-year figures is irrelevant, as the high default figure resulted from Radian re-joining the association in late 08. Write to Diana Golobay.