As of September 30, 2010, Republic Mortgage Insurance Company (RMIC) fell below the minimum policyholders’ position required by its domiciliary state of North Carolina. Under North Carolina law, the minimum policyholders’ position is not less than one twenty-fifth of the insurer’s aggregate insured risk outstanding, excluding reinsurance ceded and including reinsurance assumed. RMIC received waivers from this requirement from its regulator, the North Carolina Department of Insurance (NC DOI), and thereby was temporarily allowed to continue writing new business. The recent extension of the waiver granted by NC DOI expires August 31, 2011, with no indication that any further extensions will be granted under RMIC’s current circumstances. It is Fannie Mae’s understanding that NC DOI will prohibit RMIC from writing any new mortgage insurance policies in North Carolina on or after September 1, 2011. To view the entire Selling Guide, click here.
