A new mortgage insurance company has been approved to insure conventional agency mortgages later this year.
Word of the approval came Thursday from National Mortgage Insurance Corp.
The private mortgage insurer was founded last year by Bradley Shuster, its president and chief executive officer, and Jay Sherwood, who is executive vice president and chief financial officer.
National M.I. is in a position to take advantage of the human resources of nearby PMI Mortgage Insurance Co., which was ordered by the Arizona Department of Insurance in August 2011 to stop writing new policies. Shuster, himself, was the former president of PMI’s bankrupt parent, The PMI Group Inc.
Parent NMI Holdings Inc. raised $550 million in private capital for the venture.
According to the announcement, Fannie Mae and Freddie Mac have indicated that they will be ready to accept loans insured by the Emeryville, Calif.-based company in the second quarter.
The agency approval is subject to maintaining certain conditions.
National M.I. said it expects to insure loans in all states, though it is only licensed in 24 states and Washington, D.C., so far. The remaining state approvals are expected in the next several months.
