National Mortgage Insurance Corp. has cleared two of the biggest hurdles it faced before being able to start writing private mortgage insurance policies. Fannie Mae and Freddie Mac have approved the company for lenders to use its product as credit enhancement on low-downpayment mortgages.
But originators shouldn’t expect to be able to use National MI tomorrow; it does not expect to be writing policies until the second quarter of this year.
Glen Corso, executive vice president and general counsel of National MI, said, “The government-sponsored enterprises have told us the systems changes they require to be able to accept mortgages with our insurance policies will take until sometime in the second quarter to complete. We understand the GSEs will provide more precise guidance to lenders in forthcoming lender bulletins.”
Recently National MI was approved by New York’s Department of Financial Services, which regulates both insurers and mortgage lending in the state (as well as state-chartered banks). This brings the company to approvals from 24 states as well as the District of Columbia. It plans to be a national underwriter.