GLG News by Council Members Knowledgeable on Mortgage Guaranty Insurance

As part of the NAIC Model Act, Mortgage Insurers are required to maintain a AA claim paying rating in order to provide Mortgage Insurance.  As all the MI companies currently posses a AA rating, a downgraded rating in claim paying ability would prevent this company from providing MI on new...

Retained interests from securitizations made up more than 75% of the shareholder's equity at NFI. Also, the company has elected to finance these securities. Demand, never very strong to begin with, has deteriorated severely in the last month. The company could be forced to recognize a sizeable...

Is it enough to hand out business cards, go to network meetings, tell everyone you know you're "in insurance" and work sixty hours a week for a policy a day? Should an agency principal invest the money and use the latest technology to promote the agency without the exhausting and often fruitless "face...

Mr. Weber's analysis of the situation is quite accurate and highlights the areas of information we don't know.  Simply put, this roller coaster ride could be in for another precipitous drop.  It will take wise action on the part of the Federal Reserve and the current Administration...

It is wonderful that President Bush's plan to help the disenfranchised keep their homes, and in some (albeit, few) cases, this program will work. But like the cut in the commercial lending rates, this is more symbolic than helpful, and the true problems will persist after the assistance package is ...

For years now, the Mortgage and Commercial Lending arena has been the subject of great debate as to whether sound credit decisions were being made. Now, finally, the proof of careless lending practices are coming to light: the question at hand is how will we deal with the fallout?

The quality of lending which a lender has done is really the critical issue here.  Being overzealous on delivering 100% CLTV loans, particularly to stated income document clients, is really the biggest way to degrade the quality of investment. So with this postulate in place, one can subsequently...

It is not surprising to read that the rating agencies are re-calibrating their loss and capital adequacy models associated with mortgage insurers.  Many outside the industry have been openly critical of the rating agencies, blaming them in part for underestimating the risk in the system, leaving...

It's good for the industry.  Sends a signal that there will be winners, that there will be money to be made in this business.  It does seem, however, like very expensive capital for Countrywide, especially when you compare it to their preferred converts last year or earlier this year which...

When the history of the Mortgage Crisis of 2007 is finally written, it won't be about subprime or Alt-A. I believe it will be all about layered risk and Loan to Value ratios. All of these products worked and performed well - up until the LTVs started rising. 100% LTVs justs don't make sense.