National Mortgage Insurance Gains Momentum, Targets Early 2013 Launch
|PR Newswire Association LLC|
"The capital investment in National MI demonstrates that private investors are prepared to assume mortgage risk as the government looks to decrease its role in the mortgage insurance market," says Shuster. "The need for private mortgage insurance is growing and the return of private capital to the market at this critical time is a key component of the U.S. housing finance market recovery," he says.
A long-time mortgage insurance (MI) industry executive, Shuster has 35 years of experience in financial services, including as president of The PMI Group's international mortgage insurance and strategic investments. Earlier in his career, Shuster was a partner at
"Private mortgage insurance is typically required on mortgages with a loan-to-value (LTV) ratio of 80 percent or more, and the mortgage insurance provider is usually chosen by the mortgage lender. Initiatives by the federal government to reduce Fannie Mae's and Freddie Mac's exposure to risk will benefit well-capitalized private mortgage insurers," Shuster notes, citing the Federal Housing Finance Agency's (FHFA's) proposal earlier this year to expand reliance on mortgage insurance for Fannie Mae and Freddie Mac loans.
"We are working towards gaining the necessary approvals from regulators, including state departments of insurance during the fourth quarter of this year, with a target launch of writing our first policy in early 2013," Shuster says. "National MI has been working closely with Fannie Mae, Freddie Mac and their regulators at the FHFA, and is making significant progress towards the goal of writing coverage in all 50 states," he adds.
National MI has leased 24,000 square feet of office space in
The company's capital raise was privately structured through a Rule 144A equity offering. "The company's investors are comprised of experienced institutional and financial services market participants," notes CFO and EVP Sherwood. "Aside from the recent financial crisis, the private mortgage insurance industry has historically been a very attractive business segment. Upon receiving approvals, we seek to deploy over