New Mortgage Insurer Approved In Pennsylvania

nnsylvania Insurance Department has given a newly formed company the green light to write mortgage insurance. With the department's [link=][u]approval[/u][/link], Essent Guaranty Inc. has become the first private mortgage insurer established in the U.S. since the mortgage market began its descent. The company, which has secured $500 million in equity funding from investors such as Goldman Sachs and J.P. Morgan, is seeking approvals from other state insurance departments. Essent has also been approved by a National Association of Insurance Commissioners (NAIC) working group to participate in an expedited licensing pilot project, which streamlines state-specific application requirements. ‘As part of its decision to accept Essent's licensing as part of the streamlined pilot program, NAIC's working group recognized the significant need for another mortgage insurance company with experienced management and the capability to provide support for more home buyers nationwide,’ says Jill Jacobi, co-chair of the NAIC's National Treatment and Coordination Working Group. In a company statement, Essent says it anticipates becoming a nationally licensed mortgage insurer. ‘Approvals by the Pennsylvania Insurance Department and NAIC are critical milestones in the development of Essent's mortgage insurance business," says Mark A. Casale, president and CEO of the Radnor, Pa.-based insurer. Fannie Mae spokesperson Amy Bonitatibus says the company views Essent's announcement as ‘a positive sign for the company and its market segment,’ according to a [link=][u]Bloomberg[/u][/link] report. SOURCES: [link=]Essent Guaranty[/link], [link=]Bloomberg


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