Correcting and Replacing previous Amerin announcement.CHICAGO--(BUSINESS WIRE)--March 25, 1997--Amerin Corp. (NASDAQ NASDAQ
in full National Association of Securities Dealers Automated Quotations
U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMRN), the parent company of Amerin Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Corp., said today that it was seeking a meeting with the New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Insurance Department to resolve concerns raised in a recent department opinion about the legal status of captive captive
said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. mortgage reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. , a new concept pioneered by the company. On March 20, Amerin received a letter from the department which apparently had been sent to all private mortgage insurance companies, stating that, in the opinion of the department's general counsel, captive reinsurance structures violate New York State insurance law.
Amerin chairman and chief executive officer Gerald L. Friedman said: "We were surprised to receive the department's letter. In designing the captive reinsurance concept, we took extraordinary steps to ensure that it complies with all applicable federal and state regulations. In fact, more than a year ago, we met with both federal and state regulators, including the New York Insurance Department, to discuss a specific captive reinsurance program. Until we received the letter, the department had voiced no objections to the concept. Obviously, we are anxious to meet with the department to discuss their opinion and clarify the issues."
Although it is a relatively new concept, captive reinsurance has been approved by the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. and by various mortgage agencies. It is being studied or implemented by several major commercial banks and mortgage companies, Friedman noted, and Amerin does not believe that the issues raised by the department regarding captive mortgage reinsurance will have a material adverse effect on Amerin's business.
Amerin provides private mortgage insurance to leading mortgage originators. The company's products are discount Borrower-Paid Mortgage Insurance and Lender-Paid Mortgage Insurance. Amerin's approach to sales and underwriting Underwriting
1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt).
2. The process of issuing insurance policies. reduces the cost of its insurance and offers operating efficiencies to mortgage lenders and their borrowers. Home buyers who make down payments of less than 20 percent of the value of the home are usually required by the mortgage lender to qualify and pay for mortgage insurance on their mortgage loans. If the homeowner defaults on the loan, mortgage insurance pays the lender or the owner of the loan for its losses up to a specified coverage amount.
CONTACT: Amerin Corp., New York
Bill Campbell, 212/254-6670