A new mortgage insurance company is focusing on loans that aren’t subject to the requirements of Fannie Mae or Freddie Mac.
The launch of Arch Mortgage Guaranty Co. was announced on Tuesday by its parent, Walnut Creek, Calif.-based Arch MI.
Loans insured by the new company will be those that originators intend to keep in their own portfolios or include in private-label securitizations.
“AMG is a separately capitalized entity and not subject to GSE requirements,” today’s statement said. “AMG is uniquely positioned to insure various types of prime, standard and non-standard mortgages, including jumbo, non-QM and portfolio mortgages on an individual, bulk, or pool basis.”
Moody’s Investors Service assigned the new entity an A3 rating for insurance financial strength, “representing their highest IFS rating within the U.S. mortgage insurance industry,” Arch said.
