Introducing Arch MI Equity Secure

Insure second liens to increase your profitability while reducing risk

How do you originate more loans in a challenging market?

Grow your business without significantly growing your risk exposure — by insuring second-lien loans with a leading mortgage insurance provider. Through Arch Mortgage Assurance Company (AMAC), Arch MI is partnering with NFP® P&C to expand your lending opportunities, increase your income and reduce (and potentially eliminate) the losses from default.

As more homeowners tap into their equity, Arch MI Equity Secure opens up a new market for lenders, one with streamlined originations and minimal expense:

  • Loss protection that pays the full balance of the eligible covered loan.
  • Coverage for eligible HELOCs, Purchase Money Seconds, HELOANs.
  • Eligible second-lien volume on portfolio insurable up to a 10% annual Stop Loss.
  • Delegated loan underwriting authority with the option to submit non-delegated.
  • Rate structure that allows for a single rate for all loan types.

Protect Your Portfolio, Offer Competitive Products, Boost Your Interest Income

A fully insured program like Arch MI Equity Secure means you can expand your equity loan offerings safely and profitably. With a protected portfolio, you have the capacity and confidence to market, originate and close more second-lien loans.

Reduce Your Expenses and Make More Loans …

  • Protects lender against borrower default.
  • Slight increase in APR can cover cost of risk transfer (with no additional disclosure to borrower required in most circumstances).
  • No foreclosure required when filing a claim.
  • May reduce or eliminate REO expenses for lender.
  • Eliminates/reduces loan loss reserve requirements and protects balance sheet.

… While Borrowers Save Time and Money

  • Accepts AVMs, rather than formal appraisals, on certain transactions.
  • Allows basic title search in lieu of formal title insurance on certain transactions.

How Arch MI Equity Secure Works

The program is available through the partnership of AMAC with NFP P&C as servicer. Both companies are highly rated for their expertise, financial strength and mortgage industry experience.

In the case of default, the process is easy and streamlined for your convenience:

  • Policy activates when a claim is made — after the lender has attempted to collect, often within a 90-day period. Once the loan is deemed uncollectible, the lender can then file a claim.
  • Because the policy will pay off the balance of the loan, there are no required foreclosure proceedings.
  • The lender assigns the mortgage and note to AMAC and is reimbursed for the claim amount.
  • No foreclosure is required to file a claim, potentially reducing or eliminating typical REO costs from a servicing perspective.

Enroll in Arch MI Equity Secure Today

Insuring second liens with Arch MI Equity Secure leads to more originations, minimal risk and expense, and the likelihood of referrals and repeat business.

Contact your Arch MI Account Manager and set up a meeting to discuss your enrollment in the program.