Private Mortgage Insurers Weather First Quarter Weakness, Keeping Pace in Competitive Housing Market

Private mortgage insurers faced weaker first quarter performance compared to the previous year, with new insurance written decreasing by 9%. However, this was flat from the volumes seen in the fourth quarter of 2023. Between the fourth quarter of 2023 and the first quarter of the previous year, NIW activity dropped by 15%.

Industry-wide NIW for the first quarter totaled $59.1 billion, slightly higher than the previous quarter but lower compared to the same period last year. Total mortgage production was also lower quarter-to-quarter, according to estimates from the Mortgage Bankers Association. Despite this decrease in production, private mortgage insurance remains a key component for loans sold with loan-to-value ratios over 80% to Fannie Mae and Freddie Mac. It competes with government programs like the Federal Housing Administration.

The six active mortgage insurance underwriters had mixed results in the first quarter, with some companies gaining market share while others saw a slight decrease. Overall, private mortgage insurers faced challenges in this period but continue to play a vital role in the housing market.