CUNA Mutual partners with MGIC for private mortgage insurance
CUNA Mutual Group is working with Mortgage Guaranty Insurance Corp. to provide private mortgage insurance to credit unions.
The private mortgage insurance program will be called CUNA Mutual Group Private Mortgage Insurance, provided by MGIC, according to a press release on Monday. The partnership between the two will be a joint sales and marketing agreement, instead of a joint venture, according to Michael Zimmerman, senior vice president of investor relations at MGIC.
CUNA Mutual retreated from the mortgage insurance business in 2014 after selling its joint venture with PMI Mortgage Insurance to Arch Capital Group. That joint venture soured when PMI was put into receivership after it had to pay out too many claims during the Great Recession due to a surge in foreclosures. It subsequently declared bankruptcy.
The new program will insure credit unions against defaults on mortgages with loan-to-value ratios greater than 80%.
“Through our new partnership with MGIC, we can now protect credit unions from risk, so they can focus on helping more members reach their dreams of home ownership,” Laurie Winger, CUNA Mutual’s chief financial and product officer, said in the press release.