American International Group, Inc. : United Guaranty and REMN Announce Pilot Agreement for New CoverEdgeSM Product Post-Close Loan Analysis Is Designed to Virtually Eliminate Coverage Rescissions and Prevent Buybacks

NEWSRELEASE

United Guaranty Corporation

230 N. Elm Street
Greensboro, NC 27401
800.334.8966
For Immediate Release Contact Liz Urquhart,AVP-Corporate Communications O: 336.333.0461 | C: 336.404.6710

United Guaranty and REMN Announce Pilot Agreement for New CoverEdgeSM Product Post-Close Loan Analysis Is Designed to Virtually Eliminate Coverage Rescissions and Prevent Buybacks

GREENSBORO, NC, January 3, 2012-United Guaranty Corporation today announced that Real Estate Mortgage Network, (REMN), a national mortgage lender headquartered in River Edge, New Jersey, has signed a pilot agreement to incorporate United Guaranty's CoverEdgeSM-the mortgage insurer's industry- changing underwriting process that makes mortgage loans virtually rescission-proof-in its operations.
The process, which features a comprehensive credit and documentation analysis at loan origination and immediately after loan closing, addresses the factors that most commonly lead to denials, rescissions, and payment delays when claims are filed. These include lack of documentation, loan attributes changing prior to closing, underwriting issues, and fraud and misrepresentation.
"With CoverEdge, we add document and other loan analyses to post-closing instead of waiting until the loan is delinquent," said Kim Garland, United Guaranty's chief operating officer. "The CoverEdge review ensures that all essential documents are in place and stored electronically for the life of the loan and guideline requirements have been met. We expect it to eliminate a large percentage of issues with claims filed and significantly reduce the time to process claim payments to our customers."
According to Garland, despite serious consequences-including forced loan repurchases-related to previous mortgage manufacturing, processes have remained largely unchanged by the company's competitors since the housing crisis began. This perpetuates a generation of loans that are problematic when they default. The CoverEdge pre- and post-closing reviews nearly eliminate all risk of rescission of coverage in the future.
Fannie Mae has endorsed the product, CoverEdge, and it is currently being reviewed by Freddie Mac.
"This product addresses the needs and challenges of the current lending environment," said Real Estate Mortgage Network's Chief Executive Officer Peter R. Norden. "REMN is pleased to participate in the pilot program."
"We're committed to not only revitalizing, but reinventing, ourselves and our industry," said Eric Martinez, United Guaranty CEO. "CoverEdge makes the industry a safer place by replacing the traditional underwriting process with a process that screens out fraudulent and uninsurable loans. As an industry leader, we're making a difference for our customers through innovations like CoverEdge, enabling them to build a future based on what we've learned from the past."
REMN To Pilot United Guaranty's 2
CoverEdge Product January 3, 2012

About United Guaranty

United Guaranty Corporation and its subsidiaries provide innovative, quality risk solutions that help mortgage lenders remain competitive while generating a profitable and responsible book of business for their stakeholders. Products include first-lien private mortgage insurance-most notably Performance Premium, an industry-leading risk-based pricing option-and compliance review services. Among United Guaranty's suite of loan analysis and risk management tools are indices that measure loan risk and geographic quality. United Guaranty was established in Greensboro, North Carolina, in 1963 and has been a company of American International Group, Inc. (AIG) since 1981. The company's international locations include operations in Hong Kong, Seoul, Tokyo, Sydney, London, Madrid, Milan, Budapest, and Mexico City.

About REMN

Founded in 1989 and headquartered in River Edge, NJ, Real Estate Mortgage Network, Inc. is a national lender serving the mortgage lending needs of home buyers, homeowners, real estate professionals and builders across the country. One of the largest non-bank mortgage lenders in the US, REMN is passionately committed to quality customer service and employs more than 600 people nationwide. REMN's Web site is www.remn.com.

About AIG

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
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