Mortgage Insurers Receive GSE Approval

""Fannie Mae"":http://www.fanniemae.com/kb/index?page=home has approved four new mortgage insurers to provide mortgage insurance for conventional first mortgage loans, according to a lender letter released Thursday.

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The government-sponsored enterprise (GSE) said it is ready to accept loans from ""Essent Guaranty"":http://www.essent.us/, Inc., ""MGIC Indemnity Corporation (MIC)"":http://www.mgic.com/index.html, ""PMI Mortgage Assurance Co."":http://www.pmi-us.com/ (PMAC), and ""Republic Mortgage Insurance Company of North Carolina (RMIC-NC)."":http://www.rmic.com/Pages/default.aspx

Each insurer is approved in a limited number of states, which may change over time. To retain approval, all mortgage insurers are responsible for compliance with state limitations and must identify the insuring entity in each commitment and certification that is issued.

Under Fannie Mae's approval, Walnut Creek, California-based PMAC, an existing subsidiary of PMI Mortgage Insurance Co. (PMI), may write new mortgage insurance business, if any, in 16 states in the event that MIC cannot.

""Fannie Mae's approval of PMAC as an eligible mortgage insurer is an important step in our strategy of continuing to support our customers and the mortgage markets by continuing to write new mortgage insurance business throughout the United States,"" said L. Stephen Smith, chairman and CEO of PMI.

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RMIC-NC, headquartered in Winston Salem, North Carolina, is an affiliate of Republic Mortgage Insurance Company. Loans insured by RMIC-NC that are secured by properties in the state of New York may be delivered at any time to Fannie Mae.

According to the lender letter, all other loans insured by the new mortgage insurers are eligible for purchase by Fannie Mae if they have note dates on or after February 18, 2010.

The remaining two mortgage insurers, Essent and MIC, also received approval from ""Freddie Mac."":http://www.freddiemac.com/

Freddie Mac has named Essent, headquartered in Radnor, Pennsylvania, as a qualified mortgage insurer and anticipates being ready to accept business from the company by April 1, 2010. Daniel Kelly, director of mortgage insurer relations at Freddie Mac said Essent's entry comes at a time of real need in the market for mortgage insurance capacity.

""The GSEs' approvals officially launch our entry into the mortgage insurance business and enable us to begin supporting qualified borrowers,"" said Mark Casale, president and CEO of Essent. ""We've heard from lenders, borrowers, and state regulators that there is a real need for a strong, new mortgage insurance company, and we're pleased to support this critical segment of the housing finance market.""

Milwaukee-based MIC, a subsidiary of MGIC Investment Corporation, has been given approval by Freddie Mac to sell insurance in states where MGIC Investment's current mortgage operation does not meet minimum capital requirements, according to an ""article on Jsonline.com."":http://www.jsonline.com/business/84468682.html Its approval from Freddie Mac runs through December 31, 2012.