Triad Guaranty Inc (TGIC)

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News for 'TGIC' - (Triad Guaranty reports fewer mortgage defaults)


Aug 12, 2011 (Winston-Salem Journal - McClatchy-Tribune Information Services
via COMTEX) -- Triad Guaranty Inc. reported today a slightly lower loss in the
second quarter as the number of new mortgage defaults decreased.

! However, despite the foreclosure moratorium conducted by some mortgage lenders,
more Triad customers fell behind on their mortgage-insurance payments.

The Winston-Salem mortgage insurer had a loss of $4.4 million compared with $4.9
million in the first quarter.

It posted a net income of $79.1 million in the second quarter of 2010 as more
customers were able to make their mortgage payments during that time period.

Triad was one of the first victims of the financial crisis that began in late
2007.

It said in June 2008 it would discontinue writing new mortgage-insurance
business and would conduct "an orderly transition of its business to runoff."
That means that the company's revenue would come from existing policies that
eventually will expire.

Triad said it expects to exist for another four to six years.

Ken Jones, the company's president and chief executive, said high unemployment
and decreasing housing value! s continue to affect the company's revenues.

It had revenue of $46.5 million in the second quarter compared with $45.2
million in the first quarter.

"The benefit from the decline in new defaults was offset by lower cures and
lower rescissions during the quarter," said Ken Jones, president and chief
executive of Triad.

A cure means Triad and the mortgage lender were successful in helping a customer
recover from being in default, while rescissions can mean the termination of a
mortgage-insurance contract.

Jones said the company's deficit in assets was $593 million on June 30.

Triad cautioned again it can't guarantee it will be able to meet current and
future policy obligations with its current revenue stream.

Triad had an earnings loss of 29 cents in the second quarter compared with a
loss of 32 cents a year ago. Since the company went into run-off, it has not had
analyst coverage.

Jones said Triad has 70 employees, down from 250 when it made the runoff
announcement. He ! said the company's work force will remain in balance with the
amount of work required.



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Richard Craver


Copyright (C) 2011, Winston-Salem Journal, N.C.

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