Fannie Mae and Freddie Mac Approve National MI as an Eligible Mortgage Insurer

Fannie Mae and Freddie Mac Approve National MI as an Eligible Mortgage Insurer

PR Newswire

EMERYVILLE, Calif., Jan. 17, 2013

EMERYVILLE, Calif., Jan. 17, 2013 /PRNewswire/ --National Mortgage Insurance
Corporation ("National MI"), a new private mortgage insurer, has been approved
as an eligible mortgage insurer by Fannie Mae and Freddie Mac, subject to
maintaining certain conditions.National MI intends to offer mortgage
insurance on a nationwide basis and provide an innovative approach to risk

Along with their approval, Fannie Mae and Freddie Mac have indicated that they
will be ready to accept loans insured by National MI in the second quarter of
2013. Both Government Sponsored Enterprises (GSEs) will be communicating
directly to lenders regarding the timing and process.

"These approvals by Fannie Mae and Freddie Mac mark a huge milestone for
National MI," said Bradley Shuster, president and CEO of National MI. "I thank
both Enterprises for their prompt actions and for recognizing the importance
of a new mortgage insurance entrant at this critical time for the housing
industry. National MI now officially embarks on the important business of
providing mortgage insurance on mortgages to qualified borrowers."

National MI's entry injects over $500 million of private capital into the
market, and provides essential borrowing capacity to homebuyers who qualify
for a mortgage, but may not possess a large down payment for a home, Shuster

National MI was founded by Shuster and Jay Sherwood, executive vice president
and CFO of the company. In 2012, NMI Holdings, Inc. raised $550 million in
private capital for the new venture. The company has applied for licensing in
all 50 states and the District of Columbia, and recently received approvals
from several states, including California, New York, and Texas. National MI is
now licensed in 24 states as well as the District of Columbia. National MI
anticipates it will receive the remaining states' approvals over the next
several months.

"National MI's approval to provide mortgage insurance on loans delivered to
Fannie Mae will provide greater capacity in the market", said Rob Schaefer,
Fannie Mae vice president of Credit Enhancement Strategy and Management. "We
appreciate National MI's ongoing work to meet our eligibility requirements and
look forward to working with them as they serve Fannie Mae and our lender

"Freddie Mac is pleased that National MI is able to provide Freddie Mac's
Sellers with additional mortgage insurance capacity by bringing the industry
new capital at a level that is consistent with our safety and soundness
principles," said Gina Healy, vice president of Mortgage Insurance and Special
Assets Workout, Freddie Mac. "Today's announcement is a fresh sign that
private capital is returning to our country's recovering mortgage market."

The charters of the GSEs require additional credit support for conventional
loans with loan to value ratios in excess of 80 percent. This credit support
most often takes the form of private mortgage insurance which pays an
insurance benefit to the lender, or investor in a mortgage loan, under certain
circumstances when a loan defaults. The mortgage insurance provider is usually
chosen by the mortgage lender.

About National Mortgage Insurance

National Mortgage Insurance Corporation ("National MI"), is a new mortgage
insurance company with access to over $500 million of private, unencumbered
capital for the mortgage insurance sector. Headquartered in Emeryville,
California, in the San Francisco Bay Area, National MI is led by an
experienced management team with strong mortgage, financial services and
start-up experience. To learn more about National Mortgage Insurance, visit

Press Contacts

Mary McGarity
Strategic Vantage Mortgage Public Relations

Marshall Taylor
Strategic Vantage Mortgage Relations
(410) 867-1093

SOURCE National Mortgage Insurance Corporation

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