Arch Capital Group Ltd., Hamilton, Bermuda, has completed the acquisition of CMG Mortgage Insurance Co. and the operating platform which had been used by PMI Mortgage Insurance Co.
CMG is being renamed Arch Mortgage Insurance Co., and has obtained approvals from Fannie Mae and Freddie Mac.
It is ready to start doing business immediately, a press release says.
Arch now becomes the latest entrant into the private mortgage insurance field, which already consists of four legacy companies and two start-up operations. CMG was a joint venture between PMI and CUNA Mutual Group that specialized in providing mortgage insurance on loans originated by credit unions.
PMI's failure and subsequent bankruptcy filing led to CMG being placed on the market. Arch already has entered into a distribution agreement with CUNA Mutual. CMG's sales team will remain CUNA Mutual employees to serve credit union customers.
Technology interfaces and support personnel will not change, making this a seamless transition, CUNA Mutual says in a press release.
The charter of the mortgage insurer has been changed to allow it to provide coverage on loans from other originators, not just credit unions.
Arch U.S. MI's president and CEO is David Gainsberg. He joined Arch 2001 and has 20 years of experience in actuarial, underwriting and senior management positions in the insurance industry.
Gainsberg reports to Andrew Rippert, CEO of Arch Worldwide Mortgage Insurance and Reinsurance Group; currently is he president and CEO of Arch Mortgage Insurance Ltd., which is headquartered in Ireland.
PMI's and CMG's senior management have joined Arch U.S. MI.
There soon could be an eighth active private mortgage insurer if Old Republic International Corp. is successful in its plans to recapitalize and spin-out Republic Mortgage Insurance Co. At one point there were just seven active participants in this business: MGIC, Commonwealth, Amerin, PMI, United Guaranty, Triad and RMIC. Commonwealth and Amerin merged to form Radian.