Mortgage Insurance Written Jumps 30%

The nation's seven mortgage insurance companies wrote $13.6 billion of new policies in the first quarter, a 30% gain from the same period last year as the sector continued to gain strength, according to figures compiled by National Mortgage News and the Quarterly Data Report.

However, the growth rate was half that of the fourth quarter, when mortgage insurance policies written jumped 60%. Then again, residential fundings were $200 billion greater in the fourth quarter.

A report from FBR Capital Markets said the nation's largest mortgage insurer, MGIC Investment Corp., is its favorite stock pick in the space, but warned investors that "those looking for instant gratification are best served looking outside of the mortgage insurance stocks entirely." MGIC ranked first in new policies written in the first quarter with $3.93 billion, giving it a market share of 28.92%.

This article was reprinted with permission from American Banker.