Radian Group Inc. reported that new written mortgage insurance dropped 4% to $15.8 billion in the third quarter, from $16.4 billion in the second quarter of 2018. That’s an increase year over year of 4 percent ($15.1 billion).

Of the $15.8 billion, borrower-paid originations accounted for 91 percent of total compared to 89 percent in the second quarter of 2018, and 78 percent a year ago. Purchase originations accounted for 96 percent in the third quarter, compared to 95 percent in the second quarter of 2018, and 91 percent a year ago.

Total primary mortgage insurance in force as of September 30, 2018, grew to $217.1 billion, an increase of 3 percent compared to $210.7 billion as of June 30, 2018, and an increase of 10 percent compared to $196.5 billion as of September 30, 2017.

The composition of Radian’s mortgage insurance portfolio is 94 percent consisting of new business written after 2008, including those loans that successfully completed the Home Affordable Refinance Program.

Persistency, which is the percentage of mortgage insurance that remains in force after a 12-month period, was 81.4 percent as of September 30, 2018, compared to 80.9 percent as of June 30, 2018, and 80.0 percent as of September 30, 2017.

Net mortgage insurance premiums earned were $255.5 million for the quarter ended September 30, 2018, compared to $249.0 million for the quarter ended June 30, 2018, and $236.7 million for the quarter ended September 30, 2017.

The mortgage insurance provision for losses was $20.7 million in the third quarter of 2018, compared to $19.4 million in the second quarter of 2018, and $36.0 million in the prior-year quarter.

Companywide, net income for the quarter ended September 30, 2018, of $142.8 million, or $0.66 per diluted share. This compares to net income for the quarter ended September 30, 2017, of $65.1 million, or $0.30 per diluted share. Results for the third quarter of 2017 include $45.8 million of pretax loss on induced conversion and debt extinguishment. Also, third quarter adjusted operating earnings per share of 0.71 cents, or a 13 percent increase, compared with 0.46 cents in the same period a year ago.

Black Knight Inc. reported that adjusted revenues from its software solutions increased 7% in the third quarter to $243.9 million, from $227.2 million in the same period a year earlier. The origination business rose 8%, while the servicing software business rose 7%. Black Knight delivers software, data and analytics to mortgage, real estate and capital markets companies.

Data and Analytics Adjusted Revenues for the third quarter increased 2%, to $38.4 million, from $37.6 million in the same quarter a year earlier. The revenue performance was due to an increase in the property data and multiple listing service businesses.

Revenues for the third quarter of 2018 increased 7% to $281.7 million, from $263.8 million compared with the same quarter a year earlier. Net earnings attributable to Black Knight for the third quarter of 2018 were $43.0 million, or $0.29 per diluted share, compared to $14.7 million, or $0.21 per diluted share, in the prior year quarter.

Adjusted Revenues for the third quarter of 2018 increased 7% to $282.3 million, from $264.8 million in the prior year quarter. Adjusted Net Earnings for the third quarter of 2018 increased 31% to $71.3 million, compared with $54.3 million in the same quarter in 2017.

Adjusted Net Earnings Per Share for the third quarter of 2018 increased 33% to $0.48 per diluted share compared to $0.36 per diluted share in the prior year quarter. Adjusted EBITDA for the third quarter of 2018 increased 8% to $138.4 million, from $128.2 million in the prior year quarter. Adjusted EBITDA Margin was 49.0%, an increase of 60 basis points compared to the prior year quarter.

Senior officials of the National Association of Federally-Insured Credit Union and Ginnie Mae met this week to discuss housing finance challenges and credit union participation in Ginnie Mae programs—in anticipation of housing reform.

The meeting between Dan Berger, president and CEO of NAFCU, and Michael Bright, acting president of Ginnie Mae, also covered the Association's key principles for reform, such as the following:

• The government sponsored enterprises should be self-funded, without any dedicated government appropriations.
• Credit risk transfer transactions should be expanded and the Common Securitization Platform and Single Security retained.
• FHFA or its successor should continue to provide strong oversight of the GSEs and the new system, whatever it may look like.
• The transition to a new system should be as seamless as possible.

NAFCU seeks to ensure that lawmakers and agency officials include credit unions' principles in the Trump Administration housing reform.

Bright joined Ginnie Mae July 2017 as executive vice president and COO; he is awaiting Senate confirmation to serve as president. Bright has also served as a senior financial policy advisor to Sen. Bob Corker, R-Tenn., and helped draft a GSE reform bill introduced by Corker and Sen. Mark Warner, D-Va., in 2013.

Treasury Department Counselor Craig Phillips recently said the administration is working on housing finance reform and plans to build on recommendations that it released in June. NAFCU has called on the administration to work with Congress to develop a comprehensive solution to reforming the housing finance system.

From a legislative perspective, House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and Rep. John Delaney, D-Md., in September released a housing finance reform discussion draft that would transform Ginnie Mae's role in the housing finance market, as well as preserve a NAFCU-sought government guarantee to the secondary mortgage market and create more lending opportunities for small lenders.

In addition, following the Federal Housing Finance Agency’s release of housing finance reform objectives to leaders of the Senate Banking Committee earlier this year, Senate Banking members Corker and Warner released draft legislation. The proposal outlines new roles for Ginnie Mae and the FHFA, while establishing conditions for transition from a GSE model, to one with multiple guarantors and guaranteed access for small lenders.