Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc., has released data for primary mortgage insurance delinquencies for May 2011. The company reported 7,844 new delinquent mortgages in May, compared to 7,222 in April. Radian's net delinquent inventory for the month was 114,193 primary loans, compared to 115,020 in April.
The information below regarding new delinquencies and cures is reported to Radian from loan servicers. The accuracy of these reports may be affected by several factors, including the date on which the report is generated and by the timing of servicing transfers.
Primary New Insurance Written ($ in billions)
Beginning Primary Delinquent Inventory (number of loans)
Plus: New Delinquencies
Less: Paids (including those charged to a deductible or captive)
Less: Rescissions and Denials
Ending Primary Delinquent Inventory (number of loans)
For the months of April and May, Radian noted a relative improvement in the impact on reserve development and loss provision as a result of the change in the composition of the delinquent loan inventory. This compares to previous quarters, when Radian's reserves were significantly and negatively impacted by a change in the composition of the delinquent loan inventory, resulting from the higher reserve associated with the aging of delinquent loans and loans moving into pending claim status.