Industry NewsMortgage

Arch MI moves beyond traditional private mortgage insurance pricing models

Company offers new, risk-based model to calculate mortgage insurance rates
  • Private mortgage insurance (PMI) provider Arch Mortgage Insurance Co., announced this week that it will move beyond the conventional rate sheets used for decades in the industry and introduce a new, risk-based model for pricing coverage.
  • The company’s new program, called RateStar, offers a more targeted approach and uses a combination of loan characteristics and other risk factors to determine the most precise premium rate for each loan.
  • Instead of loans being grouped in large risk buckets, each loan will be priced based on its individual risk attributes.

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Private mortgage insurance (PMI) provider Arch Mortgage Insurance Co., announced this week that it will move beyond the conventional rate sheets used for decades in the industry and introduce a new, risk-based model for pricing coverage. The company’s new program, called RateStar, offers a more targeted approach and uses a combination of loan characteristics and other risk factors to determine the most precise premium rate for each loan. Instead of loans being grouped in large risk buckets, each loan will be priced based on its individual risk attributes. [gview file="http://www.inman.com/wp-content/uploads/2015/10/Monthly_Rate_Card_Lender_072815.pdf"] David Gansberg, president and CEO of Arch MI, said RateStar offers benefits to both loan originators and their customers. RateStar is integrated with most loan origination systems and pricing engines and can compare Arch MI product rates to FHA rates. Arch MI will honor RateStar quotes for 90 days as long as there is no cha...