Great news - Canada has finally got a new private mortgage insurer, United Guaranty, on board to hopefully cure the two way monopoly held by CMHC & Genworth in the mortgage default insurance market.  Here is a copy of the press release to announce the entry of United Guaranty...

TORONTO - AIG United Guaranty Mortgage Insurance Company Canada, which provides mortgage default insurance designed to increase home ownership, has obtained approval as a private mortgage insurer under the National Housing Act Mortgage-Backed Securities program (NHA MBS).

AIG United Guaranty's(1) approval allows for single-family residential mortgages insured by AIG United Guaranty to be eligible under the NHA MBS program. "We are pleased to announce our approval into the NHA MBS program, which allows our lending partners to securitize AIG United Guaranty-insured mortgages and support effective capital and liquidity management practices," said Andy Charles, president and CEO. "This demonstrates to the investment community the strength and strong partnership that AIG United Guaranty offers the Canadian asset-backed securities market."

The mortgage insurance subsidiaries of AIG United Guaranty provide mortgage default insurance and other private-sector risk management products to financial institutions worldwide. Mortgage insurance coverage on low-down-payment loans protects a lender against losses due to homeowner default. Home ownership studies show that loans with limited down payments have an increased likelihood of default, particularly in periods of severe or prolonged economic distress.  For more information, visit the United Guaranty website at: http://www.aigug.ca