MGIC nearly doubles new mortgage insurance in six months
Mortgage Guaranty Insurance Corp. (MTG) wrote $1.4 billion of new primary mortgage insurance in November, nearly double the $800 million written in May. The fall of the housing market greatly damaged the private mortgage insurance industry, putting many out of business and pushing some to the brink. In the third quarter of 2009, the company reported $517.8 million in losses. In the first nine months of 2009, the company lost more than $1 billion. But MGIC is on the mend, it appears. In the third quarter of 2010, the company had pared down its losses to $51.7 million. New cures on delinquent loans have held steady in the last six months at MGIC. In November, the company cured 14,897 mortgages. In May, MGIC held 235,891 delinquent mortgages in its portfolio, pushing it down to 216,024 in November. In recent months, MGIC tightened underwriting guidelines but also extended 97% loan-to-value mortgage insurance to existing homeowners in order to wrangle fresh market share. Since the housing collapse, the Federal Housing Administration took a nearly 40% share of the insurance market, a number FHA Commissioner David Stevens said his office is working to reduce in an exclusive interview with HousingWire. Write to Jon Prior.