AIG United Guaranty Mexico approved to begin operations.

AIG United Guaranty Mexico S.A., Col. Lomas de Chapultepec, Mexico--a subsidiary of United Guaranty Corporation, Greensboro, North Carolina--announced it has received approval from Mexico's minister of finance to operate as a licensed mortgage insurer in Mexico.

Since 2004, AIG United Guaranty has provided, through a U.S.-based subsidiary, mortgage guaranty insurance coverage for loans guaranteed by SHF (Sociedad Hipotecaria Federal S.N.C.), Mexico's federal mortgage lending institution, according to Octavio Figueroa, president and chief executive officer of AIG United Guaranty Mexico.

"Over the past four years since we began working in Mexico, we have focused on building relationships with both SHF and the mortgage lenders," said Figueroa. "Now that we can write business directly with lenders, we are pleased to use our international experience to provide Mexican lenders with a new option in private mortgage insurance."

The company has also initiated operations with several key mortgage lenders in Mexico and, with the local license, AIG United Guaranty Mexico can now provide mortgage insurance products directly to mortgage lenders, explained Figueroa.

In addition to AIG United Guaranty operations in Mexico, the company told Mortgage Banking it is writing business in established mortgage markets such as Canada, Israel and Hong Kong, as well as in developing markets such as South Korea and Hungary.

The company said it planned to begin writing business locally during the fourth quarter of 2008, added Figueroa.