CUNA Mutual Group has hired Wisconsin Insurance Commissioner Sean Dilweg -- the man responsible for restructuring troubled bond insurer Ambac Securities – to head its mortgage insurance business.
Dilweg also will be responsible for managing CUNA Mutual's interest in CMG Mortgage Insurance Co., a joint venture between CUNA Mutual Insurance Society and PMI Mortgage Insurance Co. CMG provides private mortgage guaranty insurance to protect credit unions against potential losses in the event of borrower default.
The Ambac deal, which divided the troubled insurer into two separate entities (one to pay claims on municipal bonds, the other on MBS and private label ABS) created controversy in the bonds markets, where entities like corporate credit unions were left holding billions of dollars on uninsured losses.
The hiring of Dilweg from outgoing Democrat Gov. Jim Doyle's office, comes on the heels of new governor Scott Walker, a Republican, appointing Ted Nickel, an executive at Church Mutual Insurance Co., as the state's new insurance commissioner.
"This new position represents CUNA Mutual's ongoing commitment to the mortgage insurance business and its important role in the credit union marketplace," said Jim Power, senior vice president and chief products officer for the Madison-based CUNA Mutual.
"Sean Dilweg is well known and respected within the insurance community and a high-level addition to the CUNA Mutual team," said Power. "His insights and experience will help us enhance the products and services we provide to credit unions."
