Essent US Holdings secured $500m in equity funding from a group of investors including Pine Brook Road Partners, Partner Re, Renaissance Re, Goldman Sachs (GS) and JP Morgan Chase (JPM). The capital will allow Essent Guaranty, a Pennsylvania-based monoline, to offer private mortgage insurance on residential US property. Essent’s mission, according to a press statement today, is to support homeownership for borrowers who can afford a home but not a large down payment by insuring mortgage lenders and investors against credit losses. The company plans to provide private capital to take mortgage credit risk and work as a risk management partner with lenders and other mortgage investors. “We are pleased to have secured substantial capital from an outstanding group of investors to support mortgage risk taking in the United States,” says Essent CEO Mark Casale in the statement. “Essent is well-positioned to enter the market for primary mortgage insurance, which has historically played a critical role in helping Americans achieve homeownership.” “Along with new, private capital, Essent will offer lenders, mortgage investors, and other market participants a risk management approach tailored specifically to meet the challenges of today’s mortgage banking industry,” he adds. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.
Most Popular Articles
Thanks to increases in home prices in 2019, the Federal Housing Administration loan limit will increase for nearly all of the country in 2020.
2019 has been a year of tremendous audience and product growth for HousingWire and we couldn’t be prouder. But we’re not ready to rest on our laurels. Far from it. In fact, 2020 promises to be an even bigger year for HousingWire.