Industry NewsMortgage

Mortgage insurers report surge in defaults

Spike blamed on major lender's reporting policies

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A major lender's change in reporting policies helped drive a 71.2 percent annual increase in defaults reported in April by major mortgage insurance companies, but represents a "one-time adjustment" in a market that "is returning to fundamentals," an industry group said. In a monthly report, the Mortgage Insurance Companies of America said its members reported 73,880 defaults in April, up from 43,161 a year ago and also besting the previous 12-month high of 68,950 seen in January. The increase included previously unreported faults by an unnamed major lender, which has changed its reporting policies, MICA said. Although the number of traditional policies issued in April was down 26.6 percent from a year ago, to 108,322, dollar volume was up 11.7 percent to $19.4 billion. The increase in dollar volume reflects a "return to quality in the marketplace," MICA Executive Vice President Suzanne Hutchinson said in a press release. MICA's reports inc...