MADISON, Wis. – CUNA Mutual Group and Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corp. said they have entered into a partnership to provide private mortgage insurance to credit unions.
According to the companies, the new program, known as “CUNA Mutual Group Private Mortgage Insurance, provided by MGIC,” is designed to make home ownership more accessible to credit union members by reducing risks for lenders.
“At CUNA Mutual Group, we are committed to helping all consumers achieve a brighter financial future,” said Laurie Winger, chief financial and product officer at CUNA Mutual Group, in a statement. “Through our new partnership with MGIC, we can now protect credit unions from risk, so they can focus on helping more members reach their dreams of home ownership.”
CUNA Mutual Group added that private mortgage insurance helps members purchase a home faster by eliminating the need for a 20% down payment. “In turn, the program protects lenders with a financial guaranty against defaults on mortgages with loan-to-value ratios greater than 80%,” CUNA Mutual Group noted.
Jay Hughes, EVP-sales and marketing with Milwaukee-based MGIC, said the company is “excited to join forces with the highly respected CUNA Mutual Group. Together we look forward to bringing our solutions and experience to the entire credit union sector.”
Beyond mortgage insurance, MGIC provides credit unions with other portfolio loan products, tools for generating leads and for educating first-time homebuyers, CUNA Mutual Group said.
“Our partnership brings together two strong financial organizations that have remained committed to their missions through many economic cycles,” added Winger. “We are excited to combine efforts to provide credit unions with access to a set of unique, ready-to-market mortgage products that help differentiate their offering with specific member needs in mind.”
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