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LOCAL EDITION ANALYTICS MGIC Forecasts the Year Ahead NEW NUMBERS FROM THE INSURANCE COMPANY INDICATE A SLIGHT UPTICK IN NEW CONTRACTS IS POSSIBLE IN 2012. MINNESOTA // Mortgage Guaranty Insurance Corp. has released its January statistics, as well as the company's projec- tions for the year ahead. MGIC reported an estimated $1.3 billion in new insurance contracts for the month, and the company is predicting a minimal rise in contracts for 2012. Numbers from the fourth quarter of 2011 show that MGIC handled around $4.2 billion in new contracts, and the compa- ny's new insurance total for the year was $14.2 billion. Data from 2011 show a solid increase over 2010 findings, with MGIC report- ing only $12.3 billion in new contracts for 2010. MGIC stated that it anticipates a slight uptick over 2011 statistics for the year. Delinquent loans were on the decline to start the year, and MGIC noted that its delinquent inventory fell to 174,418 loans to end January, versus 175,839 at the beginning of the month. MGIC's notices for new delinquencies stood at 13,700 for January, but loan cures, paid loans, and reces- sions and denials totals served to offset the tally. The company's recent statistics are in line with fourth-quarter analysis from last year, dur- ing which falling delinquencies were reported. However, MGIC's financial picture wasn't entirely rosy to conclude 2011, with pre- vious mortgage defaults hitting the company's bottom line. In Wisconsin, MGIC started 2012 with a new deal in collabora- tion with Fannie Mae, Freddie Mac, and the state's Office of the Commissioner of Insurance. Through the transaction, MGIC will be able to continue initiating new business without adhering to specific capital rules mandated by state authorities and the GSEs. Minnesota-based MGIC closed 2011 with a $135.3 million 66 | THE M REPORT loss, which is an improvement over the $186.7 million drop the company recorded at the end of 2010. It's also worth nothing that MGIC showed $172.9 billion in primary mortgage insurance on 1.1 million loans when December numbers were released. record highs in home affordabil- ity, according to the report. The NAR housing affordabil- ity index rose to a record high of 184.5 in 2011, based on the re- lationship between median home price, median family income, and average mortgage interest rate. Out of the 152 metro areas, only 24 measured had an afford- ability index below 100 in 2011. "Clearly, the Midwest has the greatest concentration of areas where homebuyers have the stron- gest purchasing power, followed by the South," Lawrence Yun, NAR chief economist, said in a statement. "Metros on the West Coast and along the Northeastern seaboard have generally higher-priced homes, which account for lower affordability," continued Yun. Total existing-home sales im- proved 9.2 percent in the fourth quarter, from 4.17 million to a seasonally adjusted annual rate of 4.42 million. All regions rose in comparison with the previous quarter and year. The national median existing single-family home price dropped 4.2 percent from $170,600 to $163,500 in the fourth quarter of 2010. Distressed homes sold at discounts averaging between 15 to 20 percent compensated for 30 percent of sales, versus 34 percent last year. Distressed sales, foreclosures, and short sales artificially depress median prices and therefore cause the median price measure- ment to be skewed at times. The fourth quarter ended with Home Affordability High in the Midwest LEADING THE WAY FOR HOME AFFORDABILITY THROUGHOUT THE MIDWESTERN STATES, MICHIGAN TOPS THE LIST OF MOST AFFORDABLE MARKETS. MICHIGAN // The latest quar- terly report by the National Association of Realtors (NAR) showed improving conditions in the majority of metropolitan areas, with rising sales and lower inventory creating more balanced circumstances. From the Dakotas and Nebraska to Oklahoma and Texas, stable home price trends continue to result from stronger job creation, ultimately creating According to NAR, an index of 100 is classified as the point at which a median-income household has enough income to qualify for the purchase of a median-priced existing single-family home. The index assumes a 20 percent down payment and 25 percent of gross income allocated to mortgage prin- cipal and interest payments. In cases where first-time buy- ers are making smaller down payments, the affordability levels are relatively lower; the higher the index, the greater the house- hold purchasing power. The metro areas boasting the greatest housing affordability conditions in 2011 include the Detroit-Warren-Livonia area of Michigan, with an index of 383.4; followed by Toledo, Ohio, at 242.9; and Decatur, Illinois, at 236.8. 2.38 million existing homes avail- able for sale, 21.2 percent lower than the close of the fourth quarter in 2010. "Sales have risen strongly in lower price ranges from one year ago, while sales at the upper end remain sluggish," said Yun. Bankrate's Financial Security Index Shows Improvement ACHIEVING ITS HIGHEST LEVEL SINCE JUNE 2011, THE COMPANY'S INDEX DISPLAYS POSITIVE STATISTICS TO START THE YEAR. FLORIDA // The Bankrate.com Financial Security Index made a leap in its recent release in January, from measuring a 95.8 in December to a 97.3, which is reported to be the highest score since June measured a 97.8. SECONDARY MARKET ANALYTICS SERVICING ORIGINATION