The Federal National Mortgage Association has approved four new mortgage insurance companies — including one that emerged from the closing of another mortgage insurer.
In Lender Letter LL-2010-02 today, Fannie Mae said Essent Guaranty Inc. has been approved to provide mortgage insurance on conventional first mortgages. Lenders must use M.I. Code 43 on Essent-insured loans.
Essent was created from the wreckage of Triad Guaranty Inc., which stopped doing new business in June 2008 and sold its information technology and operating platform in December 2009 to Essent. The Radnor, Pa.-based operation is backed by investors including Brook Road Partners, Goldman Sachs, J.P. Morgan, PartnerRe and Renaissance Re.
In addition, Washington, D.C.-based Fannie said it approved three affiliates of existing mortgage insurance companies in a limited number of states.
Among the approved firms is Republic Mortgage Insurance Co. affiliate Republic Mortgage Insurance Company of North Carolina, though it is excluded from New York deals. Also approved was Mortgage Guaranty Insurance Corp. affiliate MGIC Indemnity Corp. and PMI Mortgage Insurance Co. affiliate PMI Mortgage Assurance.
Lenders must identify whether the existing or new company is insuring the loan. The existing code will be used for either company.
Approvals are effective today.
