Fitch Ratings an international credit rating agency has released a special report that examines recent trends in the domestic business of the U.S. mortgage insurance companies showing rising delinquencies at these firms.

Fitch: Delinquencies Are Up at U.S. Private Mortgage Insurers

In the context of recent adverse developments in the U.S. mortgage market, Fitch Ratings released a special report that examines recent trends in the domestic business of the U.S. mortgage insurance companies, and the results show delinquencies are on the rise at these firms.

The U.S. private mortgage insurance companies, whose core business is insuring the risk of losses arising from defaults of residential mortgage loans, are among the industry participants that have attracted increased attention following the problems in recent months in the residential mortgage lending market, particularly in the market for subprime mortgage loans.

The Fitch report released today, 'Across the Board, Delinquencies Are Up - An Analysis of U.S. Private Mortgage Insurance Exposure,' contains comparative data on recent originations, details on the insurance in force, and performance trends of recent vintages aggregated for all mortgage insurers rated by Fitch. The report provides some initial perspectives on potential implications for future performance of these insured books as well as the financial impact on the mortgage insurance industry.

According to the report, market concerns have been broadly centered on 2006 vintage originations, but to some degree concerns extend to originations of the preceding years as well. At the same time, while the subprime sector has overwhelmingly been the primary concern thus far, some apprehension also exists that problems in the subprime sector may spill over into other sectors of the mortgage market - which comprise the lion's share of the mortgage insurers volume and insurance in force.

Fitch believes that the industry as a whole will be able to manage this more difficult operating environment over the intermediate term without ratings implications, although some companies may be better situated than others. Fitch believes partially offsetting the immediate to intermediate negative effects of the current housing market are several positive implications that are emerging or may emerge as a result of it. Some of these factors would include tighter lender underwriting standards, increased demand for the mortgage insurance product, and better pricing given expansion of credit spreads.

To view the online Press Release please click here.

To view the online Analysis please click on the following link.

Across the Board, Delinquencies Are Up - An Analysis of U.S. Private Mortgage Insurance Exposure

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