Private mortgage insurer Radian [RDN] announced that mortgages in its delinquent inventory are decreasing.
Plus Radian is writing more private mortgage insurance business.
Ending primary delinquent inventory of 46,843 loans in September compares to 47,364 at the end of August. Radian held 65,239 mortgages in its delinquent inventory one year ago.
In July, that portfolio crossed below the 50,000 threshold.
4,012 new delinquencies were recorded, 3,558 were cured in the same time period.
New insurance written of $3.79 billion compares to $3.59 billion in August, but down from $3.83 billion one year ago.
The news comes as no surprise as Monday Morning Cup of Coffee notes a Bank of America Merrill Lynch report finds business at the Federal Housing Administration, the government-backed mortgage insurance provider, is collapsing for various reasons.
“We estimate that the 12-month rolling FHA purchase mortgage production is down by roughly 50% from its peak rate in 2010. While FHA no longer needs to provide countercyclical support to housing, its market retreat brings ‘underserved’ mortgage financing conditions back to low income, often first time homebuyers, with significant implications for economic recovery measures such as housing starts and new home sales,” the note states.
