The comptroller of the currency has approved an application by Chase Manhattan Bank to set up a captive mortgage reinsurance subsidiary, opening the door for banks to share in the premiums of the highly profitable mortgage insurance industry.

Chase is the first bank to receive such approval. The OCC said in an interpretive letter in October that banks could engage in mortgage reinsurance.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.