We all know about private insured mortgages.  You know the ones - people buy into a home and don’t have enough for a down payment, so the mortgage insurance guarantees the bank payment if there is default.

Seems that there is also trouble in this market, with Mortgage Insurance Co’s of America reporting 73,880 insured borrowers at least 60 days late on payments in April.  This is an increase up from up from 43,161 a year ago.  These figures reflect both newly reported defaults for the month, as well as previously unreported defaults by one of the major lenders.  MICA gets its data from a string of different companies, and says that there was an 11.7 percent increase in new insurance written for the month. MICA sees it as a “return to quality in the marketplace.” Good news, bad news?  I have to cast a cynical eye on this reporting, because of the fact that people who are buying homes and require mortgage insurance are already skating on thin ice.  With consumer confidence ion the crapper, and with everything else going on, it is not exactly a good position to be in financially.  One also has to wonder what the margin of error is in the reporting process.  Dealing with facts from as many companies as MICA does has to be a rough ride.

The mortgage market still does not look good.  We still see a high number of foreclosures, and I have reported on the wealthy members of society who are running into difficulty just like Mr. Average Joe.  Even solid positioned families with a decent income are feeling the strain from the cost of gasoline, and there does not seem to be any letup in the near future.  Whatever is done, it will be a compromise, and I have to think that the average home owner is not going to be very happy with the end results.  Keeping our heads above water, with soaring food and gas prices is hard enough.  Moving into a new home, with the added expenses, makes it even tougher.  We shall see…