With Gansberg at the helm, Arch MI began creating relationships with bank and nonbank mortgage lenders. Arch also acquired PMI's technology in the deal. and CMG Mortgage Insurance, a joint venture between The PMI Group and CUNA Mutual that only did business with credit unions. In 2014, Arch Capital Group formed its PMI business by acquiring assets of PMI Mortgage Insurance Co. But the bankruptcy of The PMI Group, parent company of PMI Mortgage Insurance Co., provided an opportunity to enter the primary business. So Arch created a reinsurance unit and was working on other areas of mortgage credit risk transfer. Technology is important for ease of use by lenders in ordering PMI, he said. mortgage insurance wasn't part of the business plan because of the barriers to entry - the need to get GSE approval, which at the time was very difficult - and also the need for a technology platform,' Gansberg said. That background offered a unique perspective when Arch Capital Group began exploring entering the PMI sector.Īrch wanted to be in private mortgage insurance but 'initially, primary U.S. While many PMI executives come from a mortgage banking background, Gansberg's career is rooted in the insurance industry, first as an actuary and later as a property and casualty and reinsurance executive. By 2016, the PMI industry's annual volume of new insurance written was approximately $260 million. Nowadays, that cancellation feature is one of the biggest differentiators between PMI and its main competition, Federal Housing Administration insurance, which remains in place for the life of the loan. Al D'Amato, R-N.Y., requiring PMI cancellation after a homeowner's loan-to-value ratio falls below 80%. James Hansen of Utah introduced federal legislation with then-Sen. Then in 1997, after finding he couldn't remove coverage on a Virginia condo he owned, then-Republican Rep. PMI policies originally weren't required to include cancellation provisions, and they often didn't. Mortgage insurance use continued to grow and in 1992, the industry's annual volume of new insurance written topped $100 billion for the first time.

The GSEs used the product as a credit enhancement on low-down-payment loans they purchased. Modern private mortgage insurance is only 60 years old, dating back to when Max Karl started Mortgage Guaranty Insurance Corp. From new technology and pricing methodologies to value-add services and more favorable policy terms, PMI companies are cultivating deeper customer relationships to secure the future of their business. To that end, PMI carriers are striving to differentiate themselves. But over time we need to improve in that,' he said. We have much better coverage forms now, so there is a lot more certainty. As an industry we had some failings in the past and I think everyone who is still in the business is working hard to try and change that.

Arch mi guidelines