Credit Union Mortgage Institution Turns 20
Arch Mortgage Insurance, formerly CMG Mortgage Insurance, celebrated its 20th anniversary of writing insurance for credit union housing finance loans this year.
The firm opened its doors as CMG Mortgage Insurance in 1994 through a partnership between CUNA Mutual Group and a subsidiary of private mortgage insurer PMI.
The alliance flourished until 2011 when the Arizona Department of Insurance took the parent PMI company into receivership, a casualty of the housing finance crisis and Great Recession.
CMG MI said it was among the first to recognize the generally higher quality of credit union mortgage loans.
While neither CMG MI nor the PMI subsidiary that owned the firm were ever placed in receivership or were directly involved in the resolution of PMI’s bankruptcy, the legal tangle still meant a court had to approve of the company’s sale to the U.S. subsidiary of Arch Capital Group Ltd., a Bermuda-based multinational financial firm.
With the court’s approval, Arch Capital purchased CMG MI for roughly $300 million in early 2013.
Since then, the firm kept CMG MI’s focus on credit unions and credit union mortgage loans, maintaining familiar staff and procedures and endeavoring to present a seamless transition to its customers, according to company executives who attended the American Credit Union Mortgage Association’s annual conference in Las Vegas in mid-September.
“We’re proud to say we pioneered the credit union space for mortgage insurance,” Richard Izen, EVP of sales and marketing at Arch Mortgage Insurance, said. “Credit unions recognized the value we brought to their mortgage business and made us the leader for two decades. In 2014, we have a new name but our commitment to the credit union movement is unchanged.”
Izen said Arch Mortgage Insurance will soon roll out contract underwriting services.