The California Insurance Department (CDI) has authorized National Mortgage Insurance Corporation (National MI) to write mortgage insurance in the state.

National MI president and CEO Bradley Shuster said, "Approval by the California Insurance Department is a critical step toward our operational launch, and in achieving our goal to provide mortgage insurance to homeowners in California and throughout the country."

According to National MI general counsel Glen Corso, the company has already applied for state licensing in all 50 states and the District of Columbia, and is also seeking approvals from Fannie Mae and Freddie Mac to start writing insurance.

"We are making good progress in working with both Fannie Mae and Freddie Mac to receive their approvals, and are on track to do business in early 2013," Corso added.

Founded by executive vice president and chief financial officer Shuster and Jay Sherwood, National MI received approval for participation in an accelerated licensing process sponsored by the National Association of Insurance Commissioners (NAIC) in June 2012.

Its available capital will support mortgage insurance coverage on more than $30bn of mortgage loans, sufficient to provide homeownership for roughly 150,000 households across the US, according to the company estimates.