Mortgage

Mortgage insurers have had a powerful second quarter aided by the quantity of points

MGIC Investment was the only mortgage insurer to raise over $ 30 billion in the most recent period.

This resulted in the IIF increasing to $ 262 billion on June 30, compared to $ 251.7 billion three months earlier and $ 230.5 billion in the second quarter of 2020.

MGIC's NAV was 24% above BTIG's estimate as the company benefits from a strong purchasing market, analyst Ryan Gilbert said. That was also responsible for beating his prospects for his IIF.

"Our quarterly financial results benefited from the credit quality of our existing insurances, a strong housing market, a decreasing number of new defaults and an improvement in economic conditions as many local economies return to pre-pandemic activity levels," CEO Tim Mattke said in a press release.

Persistence, which measures the percentage of insurances that were still in effect from the previous year, was 57.1% as of June 30, compared to 56.2% and 68.2% as of June 30, 2020.

"We expect healthy IIF growth and NAV in 2021, although we expect some equity loss compared to 2020 earnings," said BTIG's Gilbert. "Standard stats improved in the second quarter and July, and we expect the trend to continue in 2021."

MGIC's primary default inventory was 42,999 loans at the end of the quarter versus 52,775 loans as of March 31 and 69,326 loans as of June 30, 2020.

The company released a July update showing the IIF increased nearly $ 4 billion to $ 265.8 billion and decreased overdue inventory by 1,588 to 41,411.

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