MGIC reports fewer delinquencies in May, writes $1 billion in new premiums
Private mortgage insurer MGIC Investment (MTG) experienced a slight drop in loan delinquencies last month, while also writing $1 billion in new insurance. At the beginning of May, MGIC, the primary insurer of Fannie Mae and Freddie Mac loans, had 189,433 delinquent loans in its portfolio. Over the course of the month, 11,476 loans were cured and 13,764 new delinquent notices were filed. The changes resulted in 1.5% fewer delinquencies by the end of the month with 186,516. Earlier this week, MGIC released an updated default servicing guide for mortgage servicers when filing a claim with the insurer. When a borrower defaults on a mortgage insured by MGIC, the firm requires servicers perform a set of tasks in accordance with its delegated guidelines. MGIC updates the guidelines as housing market conditions change. The company, for example, said its new short-sale guidelines now allow for a loss up to $150,000. MGIC also said it will no longer pursue a deficiency judgment on an MGIC-approved short sale or deed in lieu. Write to Kerri Panchuk.