Private Mortgage Insurance Companies Report 105,000 Defaults in December
December saw an additional 20% in mortgage defaults from November 2008 numbers- Mortgage Insurance Companies of America reports. November 2008 saw a little over 82,000 defaults. As we can clearly see the default rate is increasing at a fairly strong clip.
The positive news is that we had a slight increase in catch ups do to modification efforts and the decrease in adjustable rate resets.
December mortgage applications utilizing private mortgage insurance nationally was 62,000, up from 40,000 in November but only a third of the 154,000 seen in December 2007.
MICA includes the largest private mortgage insurers: AIG United Guaranty, Genworth Mortgage Insurance,
Mortgage Guaranty Insurance, PMI,
Radian Guaranty and Republic Mortgage Insurance Company. Triad has gone out of business.
Private mortgage insurance has become almost a non factor when we look at the above numbers. Most of the mortgage orginators on the frontline are gravitating to FHA as their primary loan program. Many borrowers are being forced out of the market, in the higher home price values due to the lack of private mortgage insurance.
Many regions across the country have been designated as declining markets precluding a downpayment of less than 10%.
