The post-mortgage crisis era witnessed paradigm shifts that sent shockwaves throughout the housing industry. Mortgage insurers (MIs) weren’t spared: Many companies were hit hard by losses, their progress in the industry stalled by the events. When National MI was formed on a rock-solid financial footing, it breathed new life into the MI business with its innovative thinking and creative initiatives.
Today, private mortgage insurance is not only relevant in the current housing cycle – it has regained its place as a true industry essential, with National MI intuitively leading the way.
Founded in 2012 and based in the San Francisco Bay Area, National MI’s market share has risen impressively. In fact, it was the only mortgage insurer to consistently grow new insurance written every quarter in 2015. National MI was named the No.1 fastest-growing company for 2015 among the HousingWire Fast50.
The company was also recognized among the “Top Ten Places to Work in the Bay Area” by The San Francisco Business Times and the Silicon Valley Business Journal.
What is the key to the company’s growth and rapid emergence as an industry leader?
For one thing, National MI’s clean book of business and its innovative solutions have helped the company grow its market share. Mortgage insurers are, first and foremost, judged on their ability to pay claims, and National MI is unburdened by losses, unlike others that were financially affected during the recession.
But there is far more to the story.
National MI has created a structure built on transparency, which assures lenders that valid claims will be handled with forthrightness and respect, rather than the evasiveness sometimes seen during the financial crisis.
The company underwrites or validates the vast majority of its portfolio. Its unique model provides lenders with strong assurance of claim payments and also ensures lenders maintain valid coverage during periods of borrower delinquencies. National MI has helped reshape industry standards with its outstanding customer service and strategic pricing, benefiting a wide range of borrowers.
“National MI’s service culture was built to go beyond responsiveness – it is designed to be proactive, delivering confident and informed decisions that are highly useful to lenders,” said Executive Vice President Claudia Merkle, National MI’s chief of insurance operations and production.
“With Sensible Servicing, our company considers all aspects of delinquencies involving borrower hardships triggered by life events such as job loss, divorce or death,” she explained.
“This underwriting approach is more efficient and thorough. It increases lenders’ confidence in credit decisions, such as ability to repay, while reducing repurchase concerns.”
The company continually sets itself apart from its competitors with innovative products, pricing and coverage terms. The company broke new ground in 2013 with National MI SafeGuard, which introduced 12-month rescission relief on insured loans, whether delegated or non-delegated.
More recently, National MI led the industry by offering transparent and competitive borrower-paid rates that are based on a disciplined, risk-based approach.
The Millennial generation, the largest market segment the United States has ever seen, is an integral part of National MI’s target audience.
“We have been working to promote homeownership for Millennials, and have partnered with experts recruited specifically to address
the challenges Millennials face on their path to homeownership,” Merkle said.
“We are looking to help lenders engage and grow this critical demographic. The Millennial generation is quite literally the future of the industry, and National MI was created to be the mortgage insurer of the future.”