S&P Lowers Ratings for 4 Mortgage Insurers
- By:
- MortgageLoan.com | April 10, 2008
Amid rumored losses within the mortgage insurance business, Standard & Poor's has lowered the credit rating for four guarantors. The credit agency said most companies would not generate an underwriting profit until 2010, putting pressure on their capital.
"The downgrades reflect weaker than expected results for the fourth quarter of 2007 and the continued deterioration in key variables that influence claims for mortgage insurance," Standard & Poor's credit analyst James Brender said in a report.
The action by the rating agency means they fall below the level needed to do business with Fannie Mae and Freddie Mac, which buys mortgages. The mortgage insurers provide cover for banks and lenders in the event of a homeowner default. Such insurance is typically required
The affected companies and ratings include MGIC Investment Corporation (MTG: 10.90, -5.13%), The PMI Group, Inc. (PMI: 5.66, -8.27%), Radian Group Inc. (RDN: 5:14, -12.59%), and Old Republic International Corporation (ORI: 13.68, -2.91%).
PMI, Radian and MGIC now have 90 days to submit a remediation plan to both Fannie Mae and Freddie Mac.
Bankruptcy Reform Back on the Table
- By:
- Bill Rice - MortgageLoan.com | November 21, 2008
One of the earliest ideas for helping homeowners facing mounting mortgage debt and potential foreclosure on their home was to reform bankruptcy laws. The concept is now officially back on the table, introduced into the Congressional lame-duck session by Senator Richard Durbin (D-IL).
TARP is Closed for Relief Until Further Notice
- By:
- Bill Rice - MortgageLoan.com | November 20, 2008
Remember what a crisis the $700 billion mortgage market bailout was--the very existence of the American financial order hung in the balance.
Fixing the Housing Market, Lots of Ideas...Any Answers?
- By:
- Bill Rice - MortgageLoan.com | November 19, 2008
Almost a year into the dawning of the housing crisis (many chronologist are setting that around the January 2008 crumbling of Countrywide) ideas continue to flow, but few seem to be the answer. In fact, this seems to be the growing consensus--there is no silver bullet.
G-20 Lots of Motion, Will There Be Action?
- By:
- Bill Rice - MortgageLoan.com | November 18, 2008
The 20 most powerful industrial nations, and now the caretakers of an unprecedented global financial crisis, assembled in Washington DC over the weekend. Their mandate was broad and daunting--stabilize world markets.
FDIC Challenges Treasury with New Loan Modification Proposal
- By:
- Bill Rice - MortgageLoan.com | November 17, 2008
On the heels of the Treasury and Federal Housing Finance Agency's (FHFA) loan modification plan for Fannie Mae and Freddie Mac, the FDIC releases their own proposal. In this unprecedented, unilateral, and aggressive move by a Federal agency the FDIC is essential fighting a very public political battle directly with the Treasury and the current Administration.
Mortgage Rates Drop for Second Straight Week
- By:
- Bill Rice - MortgageLoan.com | November 14, 2008
Another week of dismal economic data have again pushed down mortgage rates. Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.14 percent, down from 6.20 percent last week. This demonstrates a steep decline from 6.46 percent two weeks prior.
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