Radian?s Mortgage Delinquencies Up In May

Radian Guaranty, Inc., a mortgage insurance subsidiary of Radian Group Inc., reported an 8.6 percent rise in new mortgage delinquencies for the month of May and a slowed pace of the decline in delinquency inventory.
The report showed 7,844 new delinquent mortgages last month, compared to 7,222 in April. But net primary loans fell to 114,193 in May, from 115,020 a month earlier for April.

These numbers align with the Federal Reserve Consumer Credit Report for April, which showed an increase in non-revolving credit, such as mortgages and student loans, from March to April. Radian Guaranty's numbers also alight with the Mortgage Bankers Association's latest quatertly statistics which found delinquency rates fell during the first three months of 2011.

Mortgage Bankers Association Chief Economist Jay Brinkmann said in May that the decline in loans 90 days or more delinquent for five consecutive quarters is significant because those loans originated between 2005 and 2007 and make up 31 percent of loans outstanding, and 65 percent of loans seriously delinquent.

"Given that loans originated during this period are now past the point where loans normally default, and that loans originated since then generally have better credit quality, mortgage performance should continue to grow," Brinkmann said. 

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