Arch Mortgage Insurance and Reinsurance Group Updates on Credit Risk Insurance Transaction with Freddie Mac

Arch Mortgage Insurance and Reinsurance Group, a division of Arch Capital Group, announced that it recently issued an insurance policy to The Federal Home Loan Mortgage Corp. (Freddie Mac) to cover up to $77.4 million of credit losses for a portion of the credit risk associated with a pool of Single-Family loans acquired by Freddie Mac in the 2012 third quarter.

According to a release, this transaction demonstrates Arch's strong support for Freddie Mac's strategy to share credit risk with the private market.

As previously announced, Arch U.S. MI, a member of the Arch Mortgage Insurance and Reinsurance Group, plans to enter the U.S. mortgage insurance market through its acquisition of CMG Mortgage Insurance Company and certain assets of PMI Mortgage Insurance Company. As part of that process, Arch U.S. MI is continuing its discussions with Freddie Mac and The Federal National Mortgage Association (Fannie Mae) in order to obtain their approval of Arch U.S. MI as an eligible mortgage insurance carrier. If these and other required approvals are obtained, it is expected that the transaction will close near the end of 2013 or during early 2014.

Arch Mortgage Insurance and Reinsurance Group is a division of Arch Capital Group, a Bermuda-based company that provides insurance and reinsurance on a worldwide basis through its subsidiaries.

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