In the first quarter of 2023, private mortgage insurers experienced a drop in new insurance written activity compared to the same period last year, with a 9% decrease. However, this was relatively flat compared to the volumes seen in the last three months of 2023. The drop in new insurance written activity was even more pronounced when compared to the fourth quarter of 2023, with a 15% decrease.
During this period, MGIC saw a decrease in market share, benefiting Radian and National MI instead. Radian saw a 1.5 percentage point increase to 19.5% market share, while National MI saw an 0.8 percentage point increase. Industry-wide, new insurance written for the first quarter totaled $59.1 billion, slightly higher than the previous quarter’s volume of $59 billion, but lower than the $64.6 billion seen in the first quarter of the previous year.
Total mortgage production also saw a decrease quarter-to-quarter, with estimates from the Mortgage Bankers Association showing $377 billion for the period ended March 31 compared to $399 billion three months earlier. Despite this decrease, it was still higher than the first quarter of 2023, which saw a volume of $333 billion.
Private mortgage insurance is often used as credit enhancement for loans with loan-to-value ratios over 80% sold to Fannie Mae and Freddie Mac. It competes with government programs like the Federal Housing Administration. Looking at the first quarter results for