Lenders' mortgage insurance figures released yesterday by the Australian Prudential Regulation Authority show a heavy preponderance of claims coming from New South Wales.According to APRA's Half Yearly General Insurance Bulletin more than half the total LMI gross claims expense came from NSW in the year to June 2007.LMI gross claims expense in NSW was $142 million during that period, compared to total LMI gross claims expense of  $223 million. Victoria accounted for the second highest level of claims but it was well back at $41 million.These figures support the view that mortgage stress is hitting hardest in south-west Sydney.LMI claims have jumped significantly over the past two years, from $49 million in the 12 months to December 2005, to $210 million in the year to December 2006 and, according to the latest figures, $223 million in the year to June 2007.APRA did not provide any commentary on this trend, although it said in the previous Bulletin: "The higher level of claims is consistent with housing stress reported in some areas of western Sydney and elsewhere in Australia."In January 2006 APRA increased the concentration risk charge for LMIs, with the result that the minimum capital requirement went from $891 million to $2.3 billion.No further change was reported in the latest Bulletin.