Incidences of fraud and loan defects are increasing among refinances as production of the loans accelerates.

Government-insured production declined slightly during the third quarter, while new business for private mortgage insurers was up 3.8%. (Includes four data tables.)

The U.S. Mortgage Insurers said FHA’s Mutual Mortgage Insurance Fund is overdue for reforms, with the 2% capital ratio requirement not sufficient to meet the standards the GSEs and private insurers must satisfy.

Trends split during the third quarter in terms of GSE business involving private mortgage insurance. Purchase-mortgage volume increased and refis declined. (Includes three data tables.)

A pause in the National Flood Insurance Program due to the government shutdown has created opportunities for private flood insurance companies to increase their business.

Cross-industry coordination will be key to increasing housing affordability, according to industry participants.

The volume of new mortgage originations with some form of primary MI coverage rose 25.5% from the first to the second quarter, with private MIs posting bigger gains than FHA and VA. (Includes four data tables.)

Securitization of FHA purchase mortgages increased by nearly 30% on a sequential basis in the second quarter. That’s double the rate of GSE activity involving private MI as homebuyers look for loans that can help with affordability. (Includes three data tables.)

Increasing home insurance premiums have caused delays in mortgage closings, according to Matic, an insurance carrier.

Originations of home loans with some form of primary mortgage insurance fell across the board in the first quarter, but the FHA and VA gained share as the private MIs saw the biggest declines. (Includes four data tables.)