AIG 2013 Annual Report Download - page 34

Other Operations
Mortgage Guaranty Business Strategy
Mortgage Guaranty
Mortgage Guaranty (United Guaranty Corporation or UGC) offers private residential mortgage guaranty insurance,
which protects mortgage lenders and investors from loss due to borrower default and loan foreclosure. With over
1,000 employees, UGC currently insures over one million mortgage loans in the United States. In 2013, UGC
generated more than $49 billion in new insurance written, which represents the original principal balance of the
insured mortgages, making it a leading provider of private mortgage insurance in the United States.
Products and Services: UGC provides an array of products and services including first-lien mortgage guaranty
insurance in a range of premium payment plans. UGC’s primary product is private mortgage insurance. The
coverage we provide — which is called mortgage guaranty insurance, mortgage insurance, or simply ‘‘MI’’, protects
lenders against the increased risk of borrower default related to high loan-to-value (LTV) mortgages — those with
less than 20 percent equity — enabling borrowers to purchase a house with a modest down payment.
Homeowner Support: UGC also works with homeowners who are behind on their mortgage payments to identify
ways to retain their home. As a liaison between the borrower and the mortgage servicer, UGC provides the added
support to qualified homeowners to help them avoid foreclosure.
Risk Selection:
Innovation:
Ease of Use:
Expense Management:
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AIG 2013 Form 10-K16
ITEM 1 / BUSINESS / OTHER OPERATIONS
Ensure high quality new business through continuous focus on risk
selection and risk-based pricing using disciplined underwriting and a proprietary, multi-variant
risk evaluation model.
Continue to develop and enhance products, technology, and processes that
address the needs of stakeholders in the mortgage system.
Reduce complexity and enable stakeholders to easily utilize our services
throughout the mortgage insurance process.
Streamline our processes through the use of technology and shared
services.
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