Mortgage Insurers Hurt by Defaults
Triad Guaranty, in recent filings, has made known its intention to tap an $80 million credit line in an effort to preempt any cash shortages they might see amid (meaning they can barely afford the…) rising defaults on U.S. home loans.
Bloomberg, making note of Triad’s huge decline in value on the stock market, proceeded to quote:
“We’re seeing an increase in defaults in Florida and California along with the rest of the industry, but this is more to demonstrate our financial flexibility than to meet any immediate need,” Triad Chief Financial Officer Ken Jones said in an interview.
The company placed the funds in short-term investments, the filing said.
While being foreclosed upon generally hurts banks the worst, there are options to homeowners that wish to keep their homes. One such option is to explore the use of a Home equity line of credit.
Homeowners can often manage the payments required on their home by creatively using funds from a home equity line to cover months when they fall behind, and pay extra to their mortgage when they can afford to do so.
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