Fitch Upgrades NYC Residential Mortgage Insurance Corporation Claims Paying to 'AA-'
- Fitch Financial Wire -
NEW YORK, April 11 /PRNewswire/ -- The claims paying ability of the Housing Insurance Fund of New York City Residential Mortgage Insurance Corp. (REMIC) has been upgraded to 'AA-' from 'A+' by Fitch Investors Service. The rating action reflects continued underwriting strength, prudent and experienced management, sound capitalization and excellent asset quality. Mitigating these factors are REMIC's portfolio concentration in New York City, the legislatively-defined public policy role and broad mandate and the relatively new and growing book of business in the Housing Insurance Fund.
REMIC has had an excellent track record in terms of underwriting performance. In the combined 24 year history of REMIC and New York City Rehabilitation Mortgage Insurance Corp. Old REMIC), only two claims, totaling approximately $250,000, have been paid. Its delinquency and default experience has been equally impressive -- currently represented by seven properties that are in default out of 163 total properties (under Old REMIC), in which aggregate Anticipated losses are less than $100,000. Additionally, there have been 230 other properties committed or insured previously under Old REMIC, but lapsed without default. This success is attributable to sound underwriting and REMIC's defined role of promoting affordable housing financing in New York City. Such properties have historically produced very low vacancy rates and have had minimal correlation to the boom and bust real estate cycles that have impacted private sector mortgage lenders and insurers. REMIC is required to maintain risk-to-capital levels of 5:1, which are more conservative than private sector mortgage insurers, which can underwrite at up to 25:1, and REMIC's average loan-to-value of approximately 44% is also more conservative than the norm for private mortgage insurers of about 90%.
REMIC was created in January 1993 as a public benefit corporation under New York State Private Housing Finance Law and is a wholly owned subsidiary of New York City Housing Development Corp.
SOURCE Fitch Investors Service
/CONTACT: David K. Matthews, 212-908-0695, or Daniel J. Moyer, 212-908-0618, both of Fitch Investors Service/
CO: NYC Residential Mortgage Insurance Corporation ST: New York IN: FIN SU: RTG
RC -- NYF064 -- 8980 04/11/97 16:30 EDT http://www.prnewswire.com