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First-Loss Credit Protection and More

Arch MI’s strength and innovation extend to the Hong Kong geographic and mortgage markets with the acquisition of Arch MI Asia Limited (formerly AIG United Guaranty Insurance (Asia) Limited), which began operations in 1999 as one of the first mortgage insurance providers in the territory.

Arch MI Asia has been operating a residential mortgage insurance and reinsurance business to help lenders in Hong Kong make loans to more people while lowering credit-related risk for those lenders. The business complements local government and monetary regulators’ long-term financial policies.

Arch MI Asia Products and Services

Mortgage Insurance: Arch MI Asia provides first-loss credit protection coverage up to a specified maximum loan-to value-ratio (LTV). This insurance protects the lender in the event of credit default by the borrower. The base product is designed for home purchases financed by the Hong Kong dollar, but in other markets Arch MI Asia has more than a decade of experience designing custom programs for other types of loans, including interest-only, foreign exchange, revolving mortgages, second homes, second liens and self-construction.

Risk Protection: There is more risk to the lender on low down-payment loans and lenders make fewer of them when forced to retain all the additional risk. The global experience and practical support provided by Arch MI Asia’s mortgage insurance program can be adapted to a variety of loan programs (within regulatory parameters), so lenders can offer more loans to a broader range of borrowers.

Mortgage Loan Underwriting: Because we put our own capital at risk when we agree to insure loans, our underwriting programs reflect a deep analysis of mortgage risk factors — experience developed in mortgage markets around the world. Internet-based and shared electronic applications ensure accurate and consistent underwriting of loans in any location.