""American International Group"":http://www.aig.com/home_3171_411330.html (AIG) announced the creation of a new business unit to expand its mortgage investments.
[IMAGE]The new company, named Connective Mortgage Advisory Company, ""draws upon AIG's investment expertise and the experience of its mortgage insurance subsidiary, United Guaranty Corporation, to identify and buy residential whole loan mortgages as investments,"" AIG said in a release.
AIG will manage the loan servicing component for all loans purchased by Connective as long-term investments.
William Dooley, EVP of investments and financial services for AIG, explained, ""Direct investment in residential mortgage loans offers attractive investment returns and enables a proactive approach to managing mortgage risk.""
The new investment venture stems from AIG's experience with ""United Guaranty"":https://www.ugcorp.com/, its mortgage insurance subsidiary. United Guaranty ""is contributing deep knowledge of the residential mortgage landscape to the Connective project,"" the release says.
""With the support of AIG, United Guaranty became the mortgage insurance market-share leader with risk-based pricing products,"" said Donna DeMaio, CEO of the subsidiary. ""United Guaranty's understanding of residential mortgage markets combined with AIG's investment expertise creates unique new investment opportunities for AIG.""
Connective will establish correspondent relationships with lenders, underwrite loans, and provide support throughout the loan purchase process. There are no plans for Connective to conduct any direct lending or securitization, AIG said.