National MI Approved as Eligible Mortgage Insurer by GSEs

Fannie Mae and Freddie Mac approved ""National Mortgage Insurance Corporation"":http://www.nationalmi.com/ as an eligible mortgage insurer, the new private insurer announced.

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According to National MI, the GSEs have indicated they will be ready to accept loans insured by the company in the second quarter of 2013.

""These approvals by Fannie Mae and Freddie Mac mark a huge milestone for National MI,"" said Bradley Shuster, president and

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CEO of National MI. ""I thank both Enterprises for their prompt actions and for recognizing the importance of a new mortgage insurance entrant at this critical time for the housing industry.""

Shuster added National MI's entry injects over $500 million of private capital into the market and provides essential borrowing capacity to homebuyers who qualify for a mortgage, but may not possess a large down payment for a home.

In 2012, NMI Holdings, Inc. was able to raise $550 million in private capital for the new venture.

Founded by Shuster and Jay Sherwood, the California-based company is seeking to expand into all 50 states and is currently licensed in 24 states, as well the District of Columbia.

National MI expects to receive approval from the remaining states over the next several months.

""National MI's approval to provide mortgage insurance on loans delivered to Fannie Mae will provide greater capacity in the market,"" said Rob Schaefer, Fannie Mae VP of credit enhancement strategy and management. ""We appreciate National MI's ongoing work to meet our eligibility requirements and look forward to working with them as they serve Fannie Mae and our lender partners.""