Press
Arch Mortgage Insurance satisfies GSE financial requirements
WALNUT CREEK, CA (April 20, 2015 ) — Arch Mortgage Insurance Company (“Arch MI”), a leading provider of private mortgage insurance and a wholly owned subsidiary of Arch Capital Group Ltd., announced today that if the financial requirements for private mortgage insurers published on Friday by the Federal Housing Finance Agency (“FHFA”) went into effect immediately, Arch MI would satisfy them.
The final Private Mortgage Insurer Eligibility Requirements (“PMIERs”) establish new standards that mortgage insurers are required to meet to insure loans sold to or guaranteed by Fannie Mae and Freddie Mac. Based upon our interpretation of the PMIERs and Arch MI’s current portfolio and balance sheet, Arch MI’s “available assets” exceed the ”minimum required assets” specified within the final requirements.
“We are pleased that FHFA has finalized the PMIERs and believe that setting this standard for the private mortgage insurance industry provides confidence in the value of mortgage insurance,” said David Gansberg, President and Chief Executive Officer of Arch MI. “Arch MI was in compliance with the draft PMIER financial requirements and we are proud to be fully compliant now with the financial requirements in their final form. This affirms our financial strength as an insurance counterparty. We are strongly positioned to continue to meet the needs of our customers.”
The PMIERs become effective December 31, 2015 and mortgage insurers have a longer period in which to fully comply with the PMIERs’ financial requirements. Arch MI’s “minimum required assets” under the PMIERs at future points in time will be affected by many factors, including macro-economic conditions, the size and composition of Arch MI’s mortgage insurance portfolio at the applicable time, and the amount of ceded risk that may be deducted by Arch MI in its calculation of “minimum required assets.”
About Arch MI
Arch Capital Group Ltd.’s U.S. mortgage insurance operation, Arch MI, is a leading provider of private insurance covering mortgage credit risk. Headquartered in Walnut Creek, CA, Arch MI’s mission is to protect lenders against credit risk, while extending the possibility of responsible homeownership to qualified borrowers. Arch MI’s flagship mortgage insurer, Arch Mortgage Insurance Company, is licensed to write mortgage insurance in all 50 states, the District of Columbia and Puerto Rico. For more information, please visit www.archmi.com