US insured mortgage defaults resume upward trend
NEW YORK, June 30 (Reuters) - Defaults on privately insured U.S. mortgages rose in May following three months of declines, and the number brought up to date fell, providing new evidence that the nation's housing market is still deteriorating.
The Mortgage Insurance Companies of America, a trade group, said 87,904 insured borrowers were at least 60 days late on payments in May, up 8 percent from April and up 29 percent from a year earlier. Late payments often foreshadow foreclosure.
Mortgages brought up to date totaled just 52,590, down 10 percent from April and the fewest since January. But so-called insurance cures were up 29 percent from a year earlier.
Private mortgage insurance lets people buy homes with down payments of less than 20 percent, and guarantees that lenders will be repaid even if borrowers default. Insurance in force totaled $922 billion in May, the trade group said.
The industry has been tightening its standards after struggling with losses from having backed subprime and other risky mortgages, which have eaten into capital. Increasingly, mortgage providers are demanding 20 percent down payments, which could obviate the need for mortgage insurance.
In addition, while most major U.S. home loan providers adopted mortgage-modification programs in the last year to keep borrowers in their homes, many foreclosure moratoriums expired in March.
MICA compiles data from American International Group Inc's (AIG.N) United Guaranty Corp, Genworth Financial Inc (GNW.N), MGIC Investment Corp (MTG.N), Old Republic International Corp (ORI.N), PMI Group Inc (PMI.N) and Radian Group Inc (RDN.N).
Year-earlier data also included Triad Guaranty Inc (TGIC.O) but not Radian. (Reporting by Jonathan Stempel; editing by John Wallace)
