Reinsurance News

Arch offers mortgage credit assessment services to Munich Re

25th April 2018 - Author: Matt Sheehan

Arch Credit Risk Services, a unit of Arch Capital Group, has agreed to provide Munich Re with mortgage credit assessment and underwriting advisory services on a multi-year basis.

Arch Capital logoThe services provided by Arch will relate to Munich Re’s involvement in Credit Risk Transfer programs offered by U.S state-sponsored loan companies The Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac).

Founded in 2017, Arch Credit Risk Services helps clients benefit from the full mortgage underwriting and analytical expertise of Arch Capital Group’s Global Mortgage Group, which includes Arch Mortgage Insurance Company (Arch MI), the largest provider of mortgage insurance in the U.S.

Andrew Rippert, Chief Executive Officer (CEO) of Arch’s Global Mortgage Group, said: “This partnership with Munich Re further leverages Arch’s position as the industry leader in mortgage credit risk assessment.

“By offering our deep understanding of the U.S. mortgage credit market, we’re supporting Munich Re’s efforts to participate in the U.S. housing finance system. Importantly, this extension of our business model adds a fee-based revenue stream to Arch’s Global Mortgage Group.”

Doris Höpke, a member of the Board of Management at Munich Re, said: “We look forward to working with Arch and leveraging their expertise in order to expedite our participation in the U.S. Credit Risk Transfer space.

“Arch’s knowledge of the market is well-known and we believe we have found an excellent partner for this endeavor.”

Last month, Arch also established a new U.S subsidiary, called Arch MRT, to act as an intermediary in a mortgage risk transfer program offered by Freddie Mac.

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