Euclid Mortgage forms advisory panel as it pushes ahead with 1.1 UW launch plans
Joe Monaghan’s newly formed MGU Euclid Mortgage has formed an advisory panel for clients ahead of its planned underwriting launch on 1 January 2025, The Insurer can reveal.
Monaghan, who spearheaded the development of Aon’s mortgage reinsurance offering during a lengthy tenure with the broker, has partnered with Euclid Program Managers to create the new MGU, as revealed by this publication in May.
Monaghan told The Insurer the MGU is on track to begin underwriting at 1 January, with discussions ongoing with potential carrier partners.
He said the newly created panel will meet with those carrier partners to provide insight into conditions in the US housing and mortgage market.
The Mortgage Advisory Panel will include Andrew Bon Salle, former head of Fannie Mae’s single family business, Claudia Merkle, former CEO of US mortgage insurer National MI, and Ivy Zelman, founder of Zelman & Associates, one of the leading housing market research firms.
Monaghan was bullish in his expectations for growth in reinsurance demand.
“The recent easing of inflation and Fed chair Powell’s comments before Congress has increased market watchers’ probability of a September rate cut,” he said.
“Mortgage rates dropped on that news and the 30-year mortgage was below 7 percent by the end of this week.
“There are many analysts that think the 30-year rate will continue to decline and may move near or below 6.5 percent by year end and towards 6 percent or even below that level as we approach the spring selling season in 2025,” he continued.
“This is likely to drive a material increase in mortgage volume which will lead to increased reinsurance demand.”
Monaghan added that credit underwriting continues to be very strict and the quality of the underlying portfolios is “extremely solid”.
In an interview with this publication last month, Monaghan revealed Euclid Mortgage will be looking to deploy between $500mn and $600mn in capacity over time, with plans to expand to other capital relief-type deals internationally.
