The private mortgage insurance industry experienced a decline in new insurance written during the first quarter of 2023 compared to the same period last year. This was relatively flat when compared to the volumes seen in the last three months of 2023, with a 15% decrease in new insurance written activity during the fourth quarter of 2023.
During this time, MGIC saw a decrease in market share, which benefited Radian and National MI. Radian experienced a 1.5 percentage point increase to 19.5% market share, while National MI saw an 0.8 percentage point increase. Industry-wide, new insurance written for the first quarter totaled $59.1 billion, slightly higher than the previous quarter’s volume of $59 billion but lower than the $64.6 billion seen in the first quarter of the previous year.
Total mortgage production also decreased quarter-to-quarter, with estimates from the Mortgage Bankers Association showing $377 billion for the period ended March 31 compared to $399 billion three months earlier. Despite this decrease, it was still higher than the first quarter of 2023, which saw a volume of $333 billion.
Private mortgage insurance is often used as credit enhancement for loans with loan-to-value ratios over 80% sold to Fannie Mae and Freddie Mac. It competes with government programs like the Federal Housing Administration. The decline in new insurance written activity is likely due to a combination of factors including increased competition from other forms of credit enhancement and changes in lending standards and regulations.
Looking at the first quarter results for the six active mortgage insurance underwriters, it is clear that the industry is facing challenges in the current market environment
