USA Insurance history

2017 marks the 60th anniversary of the birth of the modern private mortgage insurance (PMI) industry.

Although the industry’s roots go back to the pre-Depression era, it has existed in its current form since 1957.

when Mortgage Guaranty Insurance Corporation (MGIC), the first PMI firm, was founded.

Its creation was motivated by the desire of its founder, Max Karl, to give lenders an alternative to Federal Housing Administration (FHA) lending.

housing finance

housing finance

Mortgage market

Although the FHA had served the mortgage market for more than 20 years, its underwriting restrictions and bureaucratic processes had made obtaining FHA insurance time consuming and inefficient, forcing lenders to look for alternatives.

Mortgage Guaranty Insurance Corporation was so successful that the PMI market soon attracted new entrants and the industry flourished.

Private mortgage insurance ballooned from $0.3 billion in 1960 to $63 billion by the late 1970s.

mortgage insurance

Although government-backed mortgage insurance through the FHA and the US Department of Veterans Affairs (VA) was still the largest player.

PMI’s success introduced competition and ended the government’s monopoly.

Compétitive dynamic

This competitive dynamic between private and government insurance programs exists today and influences borrower decisions while shopping for a mortgage.

And the PMI industry has continued growing in recent decades and has made it possible for millions of households to become homeowners.


But the industry’s growth did not follow a straight trajectory. Periods of sustained growth were often followed by episodes of industry-wide stress and subsequent rebuilding, including during the last housing crisis.

Since this commencement, private and government protection have assumed integral jobs.

Private mortgage insurers have traditionally played a bigger role during periods of mortgage market expansion.

while the government has increased its countercyclical role during downturns, ensuring a supply of credit through the cycle.

department of Mortgage

The formal regulatory oversight of the PMI industry, conducted by the department of insurance in each state.

Has played an important role in mitigating the effect of downturns on the industry.

Additionally, as major counterparties to Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs), private mortgage insurers are subject to intensive (PMIERs).

they are more rigorous than the standards promulgated by state regulators and were strengthened in response to the 2008 housing market downturn.

supervision and monitoring by these agencies. The standards used by the GSEs, the Private Mortgage Insurer Eligibility Requirements.

Motor traders insurance

Motor traders insurance should note that, whilst there is a relaxation of the requirements for registration, the law requires that they are obliged to register themselves

as the keeper with the DVLA as soon as the vehicle is used on the road, unless it was legitimately used under a “trade licence” with trade plates displayed

(or three months after they acquire it, whichever is the sooner).

Motor traders must notify

A motor traders must notify DVLA Swansea that they are the new keeper of the vehicle by way of the new keeper slip on the V5C Registration document.

This MUST be done on whichever date is the earliest of :

a) The day on which the motor trader first uses, or permits to be used,

the vehicle on an open street generally than under an exchange permit

b) The day on which he first keeps the vehicle on an open street

c) The three months after the date on which the vehicle was last kept by an individual who was not an engine dealer.

This is as required by the provisions of the Road Vehicles (Registration and Licensing) Regulations 2002

Motor traders will be required to submit a completed V62 application

Motor traders will be required to submit a completed V62 application and the V5C, minus the Motor Traders Supplement V5C(3), to the DVLA, for which there is no charge.

If they are not in possession of the V5C, a payment to DVLA may also be required.

For this situation the V62 will be submitted by means of the Post Office and verification of posting got.

If it is intended to reclaim the vehicle by using an open, or ‘trade’ policy please be aware that stringent enquiries will be made to check that the policy is valid

and has been legitimately obtained – for example, that the policyholder is a legitimate trader.

Where a motor trader is trying to reclaim

Where a motor trader is trying to reclaim the car using an open trader insurance policy then the following will need to be complied with before it is accepted :

Produce stock books or work books as required under Regulation 6 of the Motor Vehicles (Compulsory Insurance)

(Information Centre and Compensation)

Body Regulations 2003 to demonstrate the vehicle was in their consideration and control at the season of seizure.

If the vehicle has been in the care and control of the policy holder for less than 14 days

The policy holder is obliged by law to keep a record of every vehicle which is used under the open certificate, this record will confirm when ownership took place.


If the vehicle has been in the care and control of the policy holder for more than 14 days the policy holder is obliged by law to notify the insurance company of the acquisition of the vehicle.

Therefore the vehicle and/or Motor traders insurance must be listed on the policy at the time of production.