FOR IMMEDIATE RELEASE
ICBA Mortgage Issues First Dividend For MGIC Mortgage Insurance Program
Dividend shows that community bank mortgage loans continue to perform successfully
Washington, D.C. (August 13, 2010)—ICBA Mortgage, the mortgage services subsidiary of the Independent Community Bankers of America (ICBA), today announced that its captive mortgage insurance program with Mortgage Guaranty Insurance Corporation (MGIC) (NYSE: MTG) issued its first dividend payment for qualifying banks. The $50,000 dividend is based on performing community bank mortgage loans in the program.
“Community banks are relationship bankers that make common-sense loans, based on traditional underwriting standards, that make sense for their customers and that their customers can afford to pay back,” said Dave Petro, president and CEO of ICBA Mortgage. “This dividend proves that community bank mortgage loans continue to perform successfully in the marketplace, even during these volatile times. It’s further proof that the community banks haven’t changed their business practices, but are continuing to do business and extend credit based on the same time-honored standards they have always used.”
Launched in 2004, the MGIC captive program through ICBA Mortgage is unique in that it offers the same protections as typical mortgage insurance but gives participating banks the opportunity to earn dividends for their positive underwriting experience. The reinsurance program is possible because community banks have a proven track record of generating high-quality mortgage loans.
“When other mortgage insurance captives are going out of business, or are already defunct, the ICBA Mortgage MGIC captive mortgage insurance program is posting positive results, and we are thrilled to reward our members based on their loan success,” said Petro.
The ICBA mortgage insurance program is offered through ICBA’s captive reinsurance company, ICBA Reinsurance. Through ICBA Reinsurance, community banks can earn additional income by sharing in the underwriting results of the programs they participate in. Earlier this year, ICBA Reinsurance paid its 8th consecutive dividend to participating banks offering credit life and disability insurance. Dividends paid through this program now exceed $1.1 million.
For more information on these and other dividend producing programs visit www.icba.org.