Over Half of Arch MI's 3Q Business Is from Credit Unions

Approximately 55% of the new insurance written by Arch MI U.S. in the third quarter came from credit unions, according to the results release from its Bermuda-based parent company.

Arch MI U.S. is the renamed CMG Mortgage Insurance, and had been a joint venture between the bankrupt PMI Group and CUNA Mutual, which specialized in providing MI to credit unions. After Arch purchased the unit in January, the company said it would pursue business from all mortgage originators.

There was $2 billion of new insurance written during the quarter, Arch said. In the second quarter of this year, Arch was sixth of the seven private MIs as ranked by NIW, with $941 million written.

In addition, almost three-quarters of the $32 million of net private mortgage insurance premiums written came from credit unions.

Single-premium lender-paid MI policies accounted for the nearly $8 million in premiums written on business from other lenders during the quarter, Arch said.

Arch Capital Group's mortgage segment, which also includes its mortgage reinsurance business, had a total of $58 million of net premiums written in the period (including the $32 million from Arch MI U.S.), up from $25 billion one year prior. Nearly $9 million of the total came from a 100% quota share indemnity reinsurance agreement with PMI for business the latter company wrote between 2009 and 2011.

Arch U.S. MI had almost $6 billion of risk-in-force at the end of the third quarter.

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