PMI buys a stake in Rismark

PMI Mortgage Insurance has taken a five per cent equity position in the property funds management and research company Rismark International.

Rismark managing director Christopher Joye said the transaction involved an agreement to develop an automated valuation model.

Joye said: "The Rismark research team will construct the model and PMI, the world's second biggest mortgage insurer, will commercialise it."

Joye said an innovative feature of the model was that PMI would underwrite the valuation.

PMI and Rismark have worked together before. They entered a strategic agreement to develop a mortgage insurance model for Rismark's shared equity loan.

Joye said: "We are confident of bringing a best-in-breed AVM to the Australian banking market within 12 months.

Rismark will work on the project with RP Data.