Private mortgage insurers faced a weaker first quarter compared to the previous year, with new insurance written decreasing by 9%. However, this decline was offset by 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%.
MGIC ceded market share to Radian and National MI, with Radian gaining 1.5 percentage points to reach 19.5% market share. This shift in market share highlights the increasing competition among private mortgage insurers in recent years.
Despite the 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, competing with government programs like the Federal Housing Administration. As a result, private mortgage insurers continue to play a vital role in providing access to credit for homebuyers who may not have had it otherwise.
The six active mortgage insurance underwriters experienced mixed performance during the first quarter, with some companies gaining market share while others saw a slight decrease. Despite these challenges, private mortgage insurers remain an essential part of the housing market and will continue to play a crucial role in providing access to credit for homebuyers across the country.
