National Mortgage Insurance Corporation (National MI) has announced that it has agreed to insure an amount approximating $5 billion in residential mortgages in its first risk transfer transaction with Fannie Mae, with an expected effective date in the third quarter of 2013. The transaction is contingent on National MI receiving regulatory approval of the pool policy of insurance by the District of Columbia Department of Insurance, Securities and Banking.
The transaction was offered through a formal bid process to private mortgage insurers. Fannie Mae selected National MI as the insurer based on its favorable terms and conditions, and beneficial risk share attributes.
National MI began writing business in April of this year. Both Fannie Mae and Freddie Mac approved National MI as a qualified mortgage insurer in January of 2013.