AIG Unit Noticeably Absent from New Mortgage Insurance Lobby
AIG's United Guaranty Corp. has again elected to go off on its own and will not join the new trade group being formed by the other private mortgage insurers.
The companies behind USMI, as the new group is being called, plan to hold a press conference on Monday morning to announce its formation.
"United Guaranty has declined participation in the new trade organization USMI at this time. As part of a larger organization, we leverage AIG and United Guaranty internal resources both in Washington and with state regulators," says UG's CEO Donna DeMaio.
"However we do stay in regular communication with the companies that participate in U.S. M.I. as well as participate on specific projects, such as the development of an industry capital solvency model."
The new group replaces the Mortgage Insurance Cos. of America, which at the time of its demise at the end of January only had three members: Radian Guaranty, Mortgage Guaranty Insurance Corp. and Genworth Mortgage Insurance Co.
Those three companies, plus the two de novo MIs, Essent Guaranty and National MI as well as Arch MI (the renamed CMG) are part of this new group.
MICA membership fluctuated over the years. Radian left the group in 2003 because the trade group opposed its attempt to offer an alternative product to title insurance. It rejoined the group several years later.
United Guaranty pulled out of MICA in March 2011. At that time it put out a statement, which said its interests, had diverged from the other private mortgage insurers.
Then as Triad, Republic Mortgage Insurance Co. and PMI entered into run-off because of the housing crisis, they left the group as well. CMG, a joint venture between CUNA Mutual and PMI, remained an active insurer and recently was acquired by Arch. Arch is turning the company, which had specialized in providing credit enhancement on loans originated by credit unions, into a full-service MI.
RMIC, whose parent company Old Republic International Corp. is looking to recapitalize and reactivate it, is not listed as a member of new group either.