AIG 2013 Annual Report Download - page 35

A Look at Mortgage Guaranty
Mortgage Guaranty Distribution Network
• National Mortgage Bankers • Community Banks
• Money Center Banks • Builder-owned Mortgage Lenders
• Regional Mortgage Lenders • Internet-sourced Lenders
• Credit Unions
Mortgage Guaranty Competition
United Guaranty competes with seven private providers of mortgage insurance, both well-established and new
entrants to the industry, and The Federal Housing Administration, which is the largest provider of mortgage insurance
in the United States.
Mortgage Guaranty Competitive Strengths and Challenges
Our competitive strengths are:
History — 50 years of service to the mortgage industry
Financial strength — strong capital position and highly rated mortgage insurer
Risk-based pricing strategy — provides products that are priced commensurate with underwriting risk using its
proprietary multivariate risk evaluation model
Innovative products — develop and enhance products to address the changing needs of the mortgage industry
Rigorous approach to risk management
We face the following challenges:
Increasingly complex regulations relating to mortgage originations
Uncertain future regulatory environment in the residential housing finance system
Increasing competition in a limited private MI market
Volatility in the U.S. housing market
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AIG 2013 Form 10-K 17
ITEM 1 / BUSINESS / OTHER OPERATIONS
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