Article Summary
The use of private mortgage insurance as credit enhancement remained relatively stable in the first quarter, with only one underwriter writing over $10 billion in new insurance. This narrowed the market share spread among the six active underwriters, with NIW totaling $57.9 billion, a slight decrease from the previous quarter. Lenders originated $384 billion in mortgages during the period, and MI management teams emphasize balanced and constructive pricing despite macro uncertainty.
What This Means for You
- Expect a stable mortgage insurance market with minimal changes in pricing due to balanced supply and demand.
- If you’re a borrower, consider that mortgage lending levels remain robust, but units produced slightly decreased.
- Lenders and mortgage insurers maintain a positive outlook on the mortgage market, despite macroeconomic uncertainties.
- As a mortgage professional or investor, it’s essential to stay updated on industry trends and company performances.
Original Post
A similar share of consumers used private mortgage insurance as credit enhancement in the first quarter compared with the prior year, but only one underwriter exceeded $10 billion in new insurance written. This narrowed the market share spread among the six active underwriters, according to data compiled by Keefe, Bruyette & Woods.
As a group, NIW totaled $57.9 billion, down from the fourth quarter’s $78.3 billion and relatively flat with $58.2 billion produced in the first quarter of 2024.
During the first quarter, lenders originated $384 billion, slightly more than $377 billion done one-year prior, according to the Mortgage Bankers Association. By units, 1.068 million were produced in the period ended March 31, compared with 1.076 million for the same three months in 2024.
“MI management teams across the industry continue to stress that pricing remains balanced and constructive, and that recent increase in macro uncertainty has not significantly shifted pricing dynamics to date,” Bose George, an analyst at KBW, wrote in the earnings wrap report for NMI Holdings.
The following is a roundup of the first quarter results at the six active underwriters, as well as some recent industry news.
Key Terms
- Private Mortgage Insurance
- New Insurance Written (NIW)
- Mortgage Bankers Association
- Macro Uncertainties
- Lenders
- Borrowers
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