First Monetary Mutual Limited -- the only Bermuda-based captive insurance company owned and operated by NY Community Banks -- has entered into a unique partnership with MGIC to make PMI products available to First Monetary members / shareholders. The move follows a landmark federal ruling last fall that allows banks to set up subsidiary captive insurance companies and reinsure PMI.

FM's PMI reinsurance program not only gives community banks an opportunity to venture into the emerging insurance market, it provides a new source of fee income and permits them to compete on the same playing field as large commercial competitors. Participants in the program will earn fees based on the underwriting results of the pool.

“The real value of First Monetary’s PMI program lies in the ability it will give our shareholders to structure unique, insured mortgage products for the local markets they service,” says Frank Shashaty, President of First Monetary Mutual Limited. “While fee income is certainly an important benefit, the ability to get into this game early on and the opportunity to create differential competitive advantages are, strategically, far more significant where First Monetary members and all small banks are concerned. Banks that add Mortgage Impairment insurance to the mix -- another policy coverage we offer, can benefit even further by streamlining the entire mortgage lending process.”

For as little as $3500, shareholders secure a “wrap-around” D&O policy, complimentary, full-featured Internet site, deep discounts on bank support services, and bidding rights to reserve investments in your own bank.

Click here for more information on First Monetary’s PMI program and June conference or contact First Monetary at 441.295.5425.