Private Mortgage Insurers Struggle in First Quarter of 2023, but Market Share Remains Stable.

Private mortgage insurers faced challenges in the first quarter of 2023, with new insurance written decreasing by 9% compared to the previous year. However, this was slightly lower than the volumes seen in the fourth quarter of 2023. Despite this, total mortgage production was lower quarter-to-quarter, according to estimates from the Mortgage Bankers Association.

Industry-wide NIW for the first quarter totaled $59.1 billion, which is higher than the previous quarter but lower compared to the same period last year. This shows that private mortgage insurance remains a key component for loans sold with loan-to-value ratios over 80% to Fannie Mae and Freddie Mac, competing with government programs like the Federal Housing Administration.

Despite facing challenges in the first quarter, six active mortgage insurance underwriters showed mixed results. Some companies gained market share while others saw a slight decrease. Overall, private mortgage insurers continue to play a vital role in the housing market.