If there has ever been a time to make a campaign for mortgage insurance, current market conditions dictate that the time is now.
With the crackdown in underwriting standards, insurance is the only method to secure a mortgage without putting a minimum of 20% down. However, continued delinquencies are cutting into mortgage insurers' (MIs) ability to write new deals and maintain capital.
MGIC Investment Corp. reported a net loss for the first quarter of $34.4 million, compared with net income of $92.4 million for the same quarter a year ago. Losses incurred in the first quarter were $691.6 million, up from $181.8 million reported for the same period last year.
Ironically, however, business for the company is up. New insurance written in the first quarter was $19.1 billion, compared with $12.7 billion in 1Q07.
Though other MI companies, including PMI Group, Radian Group and Triad Guaranty, have yet to report first-quarter results (Radian is set …
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