Arch Mortgage Insurance Company’s RateStar represents the new generation of risk-based pricing in the industry. This revolutionary tool gives mortgage originators a competitive advantage because it allows them to dynamically price mortgage insurance coverage by individual loan risk attributes. At the same time, RateStar supports lenders’ needs for convenience, ease and efficiency.
RateStar goes beyond the traditional mortgage insurance characteristics used to determine the cost of MI coverage, such as LTV and credit score. It takes into account other risk factors, such as a co-borrower or loan purpose, to match the loan to Arch MI’s most competitive rates, so originators may compete more effectively, qualify more borrowers and close more loans.
Here are three ways RateStar can help originators expand their business:
1. Deliver individualized service
RateStar takes a more personalized approach to assessing risk, an approach in tune with Millennials who are accustomed to being treated as unique individuals and not part of an undifferentiated “bucket” of minimum characteristics (the rate sheet approach).
It more precisely matches MI rates to individual loan risk, enabling lenders who use it to offer more affordable home loans to eligible borrowers in this demographic. This can be a particular advantage in attracting Millennial borrowers, whose experience with the Great Recession and worries about employment have led them to be very concerned about the costs of assuming a mortgage.
The RateStar interface is fast and easy to use, eliminating unnecessary delays and boosting turnaround times. Speedy answers are important to Millennials and lenders need to respond quickly or lose the business.
2. Offer lower monthly payments
RateStar represents the culmination of Arch MI’s commitment to leveraging the most current developments in technology and automation to create a risk-based pricing program that goes beyond conventional rate sheets.
RateStar instantly analyzes a wide range of loan characteristics to more precisely match Arch MI’s most competitive rate to the individual loan risk. Lenders can save, share and print RateStar quotes or view side-by-side comparisons to pick the best option for their borrower. The win-win is lower monthly payments for eligible borrowers in a risk-appropriate environment.
3. Get rate quotes instantly
ArchMI has invested in technology that makes getting a RateStar quote easy and fast. The interface at archmi.com/ratestarlogin is seamless and integrated with most industry LOS and pricing engines, and also is available on the Arch MI Mobile App.
To address lender concerns about protecting their pipelines, each RateStar Final Quote comes with the Arch MI Promise, which guarantees the rate for 90 days (unless it becomes unavailable under state law).
“With our commitment to real innovation, Arch MI has proven itself to be the partner that can transform and expand lending horizons,” said David Gansberg, president and CEO of Arch MI.
David Gansberg, President and CEO
As president and CEO, David Gansberg has responsibility for managing all aspects of Arch MI. He leads an executive management team comprising the chief risk officer, chief financial officer, general counsel, executive vice president of sales and marketing and chief operating officer. Before being appointed to this role, Gansberg held a variety of positions with subsidiaries of the Arch Capital Group, including EVP of Arch Reinsurance Company. He began his career as an actuary for Cigna and he is a member of the American Academy of Actuaries and Casualty Actuarial Society.
Chris Hovey, EVP, Chief Operations Officer
As chief operations officer, Chris Hovey has responsibility for Arch MI’s national underwriting operations, servicing and loss management and IT. Previously, Hovey was chief operations officer for PMI Mortgage Insurance Co. He originally joined PMI in 2002, where he held successive positions in IT, mortgage operations and portfolio analytics before serving as senior vice president for servicing operations and loss management. He is a recognized expert on mortgage servicing, having created the first servicing performance scorecard.
Cheryl Feltgen, EVP, Chief Risk Officer
As chief risk officer, Cheryl Feltgen has responsibility for risk management oversight of Arch MI. Her responsibilities include risk analysis and pricing, actuarial services, credit risk policy administration, quality control and product management. Prior to joining Arch MI, Feltgen held the position of senior vice president-chief enterprise risk management operating officer at Fifth Third Bank for five years. Prior to Fifth Third Bank, Feltgen served as senior vice president-chief risk officer at Washington Mutual and executive vice president-risk management at General Electric.