TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/120611
The latest Se r v ic i ng Or ig i nat ion SERVICING Servicers Are Meeting Their End of the Bargain s e c on da r y m a r k e t a na ly t ic s One year after the national mortgage settlement, reports show that servicers have paid billions in relief. A Rollercoaster Ride for Private Insurance January saw a dip in private insurance, but the market was primed and ready for February. P rivate mortgage insurance dollar volume slipped month-overmonth in January, according to data reported by Mortgage Insurance Companies of America (MICA). MICA member companies Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, and Radian Guaranty Inc. wrote $10.47 billion in primary new insurance in January, the trade 48 | The M Report association reported. That figure is down from December's reported $10.68 billion but a massive improvement over January 2012's $4.97 billion. As of the end of the month, the companies reported having more than $401 billion in primary insurance in force. At the same time, the number of applications and policies issued both increased. According to MICA, member companies received 39,571 applications in January, a step up from December's 38,915 and January 2012's 24,097. An estimated 36,923 certificates were issued compared with 36,543 the prior month and 21,904 the prior year. In other news, MICA members reported 23,538 defaults in January, down about 1,000 from December. The month also saw 20,568 cures (up from 20,048), bringing the cure-to-default ratio up to 87.4 percent—its highest level in nine months. year after the nation's largest mortgage servicers reached a monumental settlement with 49 states' attorneys general and several federal agencies, the five servicers have reportedly provided assistance in the amount of $45.83 billion to 550,000 homeowners, according to the Office of Mortgage Settlement Oversight. The independent settlement monitor recently released his third progress report since the agreement. With the release of the report, HUD Secretary Shaun Donovan specifically touted the efforts made through principal reductions. "We have already surpassed our initial expectations, and the settlement is a testament to the fact that large-scale principal reduction can be used as an important tool in our efforts to prevent foreclosures without incurring negative results," Donovan said. The greatest portion of the total $45.83 billion distributed since the settlement went to "relief to support homeownership."