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GLG News by Council Members Knowledgeable on Mortgage Guaranty Insurance

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July 14, 2008
Floods And Crop Futures
Analysis of: P/C Insurers Still Above Water After 2008 Midwest Floods: S&P | www.insuranceassetmanager.com
Author: GLG Expert Contributor
Will The Mid-West Floods Of Early Summer Negatively Affect Crop Futures?
June 30, 2008
The public no longer needs state run insurance programs as competition has returned
Analysis of: Growth of State-Run Property Insurance Plans Flattens | usinsurancenews.com
Author: GLG Expert Contributor
FAIR Plans are no longer the only carrier in business. 
Douglas RossbachJune 27, 2008
Private Mortgage Insurance Companies Running Out of Options
Analysis of: Moody's Lowers Its Ratings on Radian and Two Units | online.wsj.com
Author: Douglas Rossbach, Partner, Rossbach Consulting
The mortgage  insurance industry has suffered horrific losses and is quickly losing ground in a struggle for survival. Triad announced that it will cease insuring new loans.  The three major mortgage insurers (MTG, PMI, RDN) have been downgraded below AA, the minimum rating required...
June 26, 2008
Failure of Artificially Accelerating Homeownership
Analysis of: Rise in Renters Erasing Gains for Ownership | www.nytimes.com
Author: GLG Expert Contributor
During the residential real estate bubble, underwriting standards were relaxed so far that unprecedented numbers of unqualified borrowers became new homeowners and many existing homeowners serially refinanced into loans that that they could not afford. Once the air began leaking from the bubble,...
Mark MariottiJune 19, 2008
Hardware & Software Duality
Analysis of: HP to Acquire EDS for $13.9 Billion | www.hp.com
Author: Mark Mariotti, CEO, Future Management Holdings Inc
HP is a long time solid provider of computer hardware, and EDS (founded the information technology out-sourcing industry more than 45 years ago) is a longtime provider of system services. The Plan of Merger, dated as of May 13, 2008, by and among EDS, Hewlett-Packard Company and Hawk Merger...
June 18, 2008
Will We Act on What We've Learned from the Collapse of the Housing Bubble?
Analysis of: Lessons From the Housing Bubble | online.wsj.com
Author: GLG Expert Contributor
Thsi WSJ article simply and clearly lays out the three key factors behind the current "housing crisis:"  financial engineering by Wall Street that increased risk, unconscionable enabling by rating agencies, and asleep-at-the-switch regulators.
Mark MariottiJune 17, 2008
Las Vegas Housing Parabola
Analysis of: HOME INVENTORY INCREASES IN MAY | www.lvrj.com
Author: Mark Mariotti, CEO, Future Management Holdings Inc
With 45 percent of contingent sales identified as "short sales," or sales in which the lender will be required to accept less than the principal balance owed, we can't expect investor demand to grow. Investors currently have other more liquid and stable securities to place their bets, and...
Douglas RossbachJune 12, 2008
Rating Agencies Drive Mortgage Insurer's Quest for Capital
Analysis of: Fitch Cuts Mtge Insurer Ratings; Sees Pressure Until Late '09 | online.wsj.com
Author: Douglas Rossbach, Partner, Rossbach Consulting
Recently Fitch, S&P and Moodys all lowered the ratings of the major mortgage insurance companies (MTG, RDN, PMI). The rating agencies justified these downgrades based on challenges and the high losses the MI industry is incurring as a result of the meltdown in the mortgage market. To manage this...
June 9, 2008
Banks Begin Facing Losses on Highly Leveraged Development Loans
Analysis of: Real Estate Woes of Banks Mount | online.wsj.com
Author: GLG Expert Contributor
Many banks will no longer be able to deny huge losses on their portfolios of loans to residential and other developers.  Recognition and realization of these losses will seriously damage the financial strength of many banks, particularly smaller ones.  Expect increasing bank failures.
June 9, 2008
Both insureds and agents realize the necessity of Life Insurance, no matter how hard the times, or cost.
Analysis of: Only Universal Life Sales Show Growth in the First Quarter in 2008, LIMRA Reports | www.insurancenewsnet.com
Author: GLG Expert Contributor
Insureds know they must have Life Insurance, but they are scared to buy what can be an excruciatingly complicated protective instrument. An agent seasoned by years of application can help the insured select a Life Insurance policy that will suit their circumstances.

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