FOR IMMEDIATE RELEASE
Maryland Bank First to Join ICBA's Unique Mortgage Reinsurance Program
Washington, D.C. (Feb. 4, 2004) - Easton Bank and Trust Co. in Easton, Md., has become the first community bank to participate in the Independent Community Bankers of America's first-of-its-kind mortgage reinsurance program.
Under an agreement between the ICBA, the nation's largest banking trade association, and the Mortgage Guaranty Insurance Corp., community banks may take part in a group mortgage reinsurance venture to tap new revenue while expanding their low-down-payment mortgage lending.
"We are delighted to be the first to join the ICBA's new mortgage reinsurance program," said R. Michael Menzies, president and CEO of Easton Bank and Trust. "It gives us a rare opportunity, not only to provide greater assistance for first-time homebuyers, but also to add more income to our bottom line."
In addition to easy access to mortgage reinsurance, the ICBA-MGIC program also provides community banks contract underwriting, homebuyer education, staff training and a customer retention program.
Michael Hindman, president and CEO of ICBA Mortgage, ICBA's mortgage services corporation, noted that ICBA is the only banking trade association to establish a mortgage reinsurance program for its members. "Our research confirmed that community banks needed such a program," Hindman said. "Yet none of our members could individually absorb the cost of starting their own mortgage reinsurance venture, nor did they have the geographical reach to make such a venture feasible."
ICBA Mortgage provides an indirect access to the secondary mortgage market through RBMG, and manages alliances with Freddie Mac and Fannie Mae for ICBA members that sell and service loans directly.
For more information about ICBA's new mortgage reinsurance program, community bankers should call ICBA Mortgage at (800) 253-5356.