Of the publicly traded insurers, MGIC, Genworth and United Guaranty (part of AIG), reported positive income, with Radian still trying to break out of negative territory. Privately held Essent Guaranty, a newbie, is coming on strong, with $10 billion in new business through the first half, versus $3.6 billion in the year-earlier period, according to IMF.

“Delinquencies are down, and the companies have recapitalized,” said Bose George, an analyst at Keefe Bruyette Woods. “At the same time, FHA is reducing its role in the market, so this has given them significant growth opportunities. … The companies have reversed their position and are starting to show modest profitability.”

(Read more: Mortgage delinquencies take a sharp turn up)

The private insurers have also benefited from the government housing bailout—the refinance program for underwater borrowers as well as the Home Affordable Modification Program. Both help borrowers make their monthly payments and stay current on their loans, although HAMP has come under fire recently as a report from the Troubled Asset Relief Program’s inspector general found the program had a high re-default rate.

Article source: http://www.cnbc.com/id/100956144

Today the Obama administration released its monthly “scorecard” for the Making Home Affordable Program (MHA), a.k.a. the federal mortgage bailout. The Home Affordable Modification Program (HAMP), which is part of MHA, continues to add trial modifications at about 29,000 per month and permanent modifications, a bit less, at 26,000. The redefault rate on the permanent modifications is now at 12 percent.

This month the administration released the first numbers on its Home Affordable Foreclosure Alternative program (HAFA), which pays borrowers $3000 to vacate their homes through short sales (where the bank agrees to let the home be sold for less than the value of the mortgage) and deeds in lieu of foreclosure (essentially giving the keys back to the bank). Banks get monetary incentives as well for that. So far 4500 borrowers have vacated their homes under this program.

It should be noted that in the past two weeks members of the House of Representatives voted to abolish the government’s mortgage bailout, including the HAMP and HAFA programs. It’s interesting that in light of that, the usually optimistic administration put forth this statement:

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Article source: http://www.cnbc.com/id/42379996?__source=RSS*blog*&par=RSS

Today House Republicans will take up arms against a sea of government housing bailouts, voting to abolish the Federal Housing Authority’s (FHA) $14B Short Refi program and the $1B Emergency Mortgage Relief Program. Next week they will take up the $29B Home Affordable Modification Program (HAMP) and the $7B Neighborhood Stabilization Program.

The argument is that none of these programs are working and that they are a waste of taxpayer dollars. The mortgage modification program, a particular thorn: “Not only is this a failing program, it’s a failing program that causes real financial pain to the very people it was set up to help,” writes Rep. Patrick McHenry (R-NC), Chairman of the Oversight Subcommittee on TARP, in a press release.

Administration officials have tried to defend the programs, admitting they haven’t performed as expected, but urging that they be given a longer life. “These programs are continuing to help people, and we don’t see that the critics are offering any alternatives,” said Tim Massad, Acting Asst. Treasury Secretary for Financial Security, on a conference call yesterday.

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Article source: http://www.cnbc.com/id/41889784?__source=RSS*blog*&par=RSS

The Obama Administration is vigorously defending its mortgage bailout programs, from the Home Affordable Modification Program (HAMP) to the Neighborhood Stabilization Program to the FHA Short Refi.

They’ve taken to the blogosphere, the reporter conference call and to a hearing room in the House of Representatives, where Republicans are bent on scrapping it all.

Interestingly, the Administration also released the “Monthly Scorecard” for the programs today. The HAMP in particular offered some pretty lackluster results. While totals continue to rise, the number of trial and permanent modifications made in January were fewer than the number made in December. New volume has been falling steadily.

Neil Barofsky, the Special Inspector General for the TARP, opened today’s hearing with strong criticism of the Treasury’s transparency, or lack thereof, in reporting the number of borrowers who can be helped. He called it “disturbing,” “shameful,” and “inexplicable.”

When the vote to abolish these programs was announced last week, and Administration spokesperson blasted, “If enacted, this legislation would close the door to struggling homeowners seeking relief in the face of the worst housing crisis in generations.”

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Article source: http://www.cnbc.com/id/41874934?__source=RSS*blog*&par=RSS