Alternative Markets

Tailored for Your Institution’s Needs

Our experience includes solutions for large banks, mortgage banks, community banks, credit unions and other entities in need of creative risk management solutions.

Our affiliation with the highest rated mortgage insurer in the industry coupled with innovative structures and risk-based pricing ensures efficient transactions with a reliable counterparty. Solutions include Pool, Mod Pool, Declining Coverage and other bespoke transactions.

Clients Served:

• Portfolio lenders.
• Government agencies.
• Institutional investors.

Arch Mortgage Risk Transfer (Arch MRT), a Washington, D.C.-based subsidiary of ACGL, is designed to broaden private capital participation in the U.S. housing finance system. Arch MRT transfers 100% of the mortgage credit risk it insures to a panel of diversified, well-capitalized and highly rated (re)insurers that provide high-quality assets in trust.

In addition to expanding the capital sources willing to take U.S. mortgage credit risk, Arch MRT structures can incorporate fully funded, partially collateralized and forward commitment features. Execution incorporates a transparent, competitive bid process among capital providers for pricing.

The Mortgage Insurance Linked Note Pioneer

Arch obtains fully funded reinsurance protection through the issuance of mortgage insurance linked notes (ILNs) through its Bellemeade program. Under this program, Arch’s mortgage insurance subsidiaries enter into a reinsurance contract with a special purpose insurer that issues ILNs to fund its obligation to Arch. As of November 2020, the Bellemeade program has completed 13 transactions totaling more than $6.2 billion in issued securities, providing protection on $587 billion of insured mortgages.

The Bellemeade program is a critical tool used to manage capital needs and mitigate losses under financial stress scenarios while providing key insights from a broad spectrum of institutional investors regarding the housing finance environment in which we operate.