Armed with more than a half billion dollars in capital and easy access to the human resources of a former mortgage insurance giant, a new mortgage insurer has issued its first policies.
National Mortgage Insurance Corp. said earlier this year that it had been approved by Fannie Mae and Freddie Mac to insure agency conventional loans.
Fannie will start accepting loans on June 1 with a Jan. 16 or later note date, according to an announcement Wednesday, while Freddie began accepting National M.I.-insured loans as of April 1.
A Jan. 17 statement said that parent NMI Holdings Inc. had raised $550 million in private capital for the business.
In addition to the capital resources, the Emeryville, Calif.-based company has access to current and former employees of nearby PMI Mortgage Insurance Co., which is being operated in runoff mode by the Arizona Department of Insurance as receiver.
National M.I. was founded in 2012 by former PMI Capital Corp. president Bradley Shuster, who serves as president and chief executive officer in the current organization, and Jay Sherwood, National M.I.’s chief financial officer.
On Wednesday, National M.I. reported that it issued its first mortgage insurance commitments in April, “officially marking its entry into the private mortgage insurance business.”
“National M.I. has spent the last several months ramping up its sales and operations teams with experienced veterans of the mortgage insurance business,” the announcement stated. “The company will continue hiring at its headquarters in Northern California and across the country.”
In addition, a hundred master policies have been approved with lender customers.
The mortgage insurance company claims to have the capacity to insure more than $30 billion in mortgages.
Approval has reportedly been obtained from insurance regulators in 46 states and Washington, D.C., and National M.I. said it expects to secure approval from the remaining four states in the near term.
National M.I. is online at www.nationalmi.com.
