It appears the residential finance sector is about to gain another new mortgage insurance company. A de novo MI called NMI Holdings said this week it raised $550 million in capital through a private placement of common stock.
Bradley Shuster, who ran PMI's international operations until the company sold its Australian unit to QBE Group in 2008, is the chairman, president and CEO of NMI Holdings Inc., which is based in Oakland, Calif.
PMI stopped writing new policies a few months back and is slated to go into run-off mode unless it can attract new investors.
In a press release Shuster said, “We are pleased to have completed this equity offering. We are eager to begin the state insurance and Fannie Mae/Freddie Mac approval processes to establish an underwriting-focused mortgage insurer that we believe will deliver a superior level of service and be committed to its customers, employees and investors.”
Schuster added, “We believe mortgage insurance is a critical component of the U.S. housing finance system, and we look forward to assisting families realize the American dream of homeownership.”
Since the housing bust, at least two MIs have stopped writing policies with another on the verge of shutting down.
In this vacuum there has been just one new player in the space, Essent, which was financed by Goldman Sachs, but does not disclose its volume numbers to National Mortgage News.
