Private mortgage insurance companies are raising premiums on a targeted basis, in part so they can better manage risk in an increasingly volatile economy.
Purchase-mortgage business with primary mortgage insurance held up well in the second quarter while refi activity dropped, according to an analysis of agency MBS issuance. (Includes two data charts.)
The slowing pace of delinquencies helped mitigate the impact of a reduction in new private mortgage insurance policies written as mortgage originations slowed.
Private mortgage insurers, who compete with the FHA to a certain extent, applauded the agency’s “disciplined approach” to premium pricing and policies.
The growth gap between private mortgage insurers and insurance-in-force at FHA widened in the second quarter, Keefe, Bruyette & Woods said in a new report.