The struggling lender’s pivot to reverse mortgages creates an opportunity for the big private mortgage insurer to acquire Agents National Title and Boston National Title.
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Finance of America’s pivot to reverse mortgage lending has opened up an opportunity for private mortgage insurer Essent Group to get into the title insurance business by acquiring two companies from Finance of America subsidiary Incenter for $100 million, the companies said on Thursday.
Pending approval from regulators, Essent will acquire Agents National Title, a Missouri-based title insurance underwriter with 44 state licenses, and Boston National Title, a North Carolina-based independent title agency that provides title and settlement services with licenses in 40 states and Washington, D.C.
“Title insurance is a natural complement to our mortgage insurance business with relatively low and stable loss ratios historically,” said Essent CEO Mark Casale in a statement. “The acquisitions of Agents National Title and Boston National Title add a team of seasoned title professionals to Essent and provide a platform to leverage our capital position, lender network and operational expertise across an adjacent real estate sector as we continue to expand our franchise.”
Private mortgage insurers protect lenders against losses, with Fannie Mae and Freddie Mac requiring private mortgage insurance whenever homebuyers make down payments of less than 20 percent. According to the industry group U.S. Mortgage Insurers, private insurers backed $600 billion in loans in 2021, with 65 percent of that volume for new purchases and 35 percent for refinanced loans.
Bermuda-based Essent Group is one of the nation’s six primary providers of private mortgage insurance, offering private mortgage…