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Press release from Business Wire

United Guaranty Fully Supports HARP Revisions

<p class='bwalignc'> <b>Mortgage Insurer Will Work With Servicers to Streamline Refinances for Homeowners</b> </p>

Monday, November 21, 2011

United Guaranty Fully Supports HARP Revisions16:55 EST Monday, November 21, 2011 GREENSBORO, N.C. (Business Wire) -- United Guaranty Corporation today reaffirmed that it and its mortgage guaranty subsidiaries (United Guaranty) fully support the Obama administration's efforts to keep families in their homes through the Home Affordable Refinance Program (HARP). The administration recently announced revisions aimed at widening the program's reach by allowing borrowers who are current on their mortgages—but unable to get traditional refinances because the value of their homes has declined—to participate in the program and benefit from historic low interest rates. “After a thorough review of how the changes relate to our portfolio, United Guaranty will responsibly expand our already robust participation in the program by waiving representations associated with the original loan file for a majority of our portfolio,” said Brian Gould, Senior Vice President–Loss Management. “With this change, we can streamline the process to obtain a HARP loan, ensuring that families are included in and informed of the program—even if previous unsafe practices of certain lenders might otherwise have prevented servicers from including homeowners with United Guaranty-insured loans in the program. We've evaluated our portfolio of loans to identify loans that are unlikely to be defective.” Eric Martinez, CEO of the Greensboro, NC-based mortgage insurer, said, “We are committed to helping homeowners understand their refinance and modification options for their mortgages. In fact, United Guaranty is a leader in the industry in successfully modifying loans and continuing to insure them. We have helped 17,037 families receive HARP modifications since its inception in 2009. As an industry leader, United Guaranty views this thoughtful execution as our responsibility to the health of our industry and the safety of our customers.” 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 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. American International Group, Inc.Mark Herr, O: 212-770-3505C: 718-685-9348Vice President?AIG Media Relations