Freddie Mac has approved PMI Mortgage Assurance Co. (PMAC), a subsidiary of PMI Mortgage Insurance Co. (MIC), as a direct issuer of mortgage guaranty insurance.
Pursuant to Freddie Mac's approval, PMAC may write new mortgage insurance business in certain states in the event that MIC is required to cease writing new mortgage insurance business in those states due to its inability to meet applicable regulatory capital requirements.Â Freddie Mac's approval, which is subject to certain conditions and restrictions, will remain in effect until December 31, 2011.
In February, the mortgage insurer announced that Fannie Mae had approved PMAC as a direct issuer of mortgage guaranty insurance.
PMAC will insure new loans under the same policy terms and conditions as MIC, and will contract with MIC to provide it with sales, operations and other support services.
SOURCE: PMI Mortgage Insurance Co.