Triad Guaranty negotiations fail, to layoff 100
Triad Guaranty has failed to come to an agreement with a private investment group to form a new mortgage insurer, and will go into "run-off" and cease writing new business.
The failure of negotiations with Lightyear Capital means there will be no new business written by the company. As a result, the company said it will layoff about 100 people in coming weeks. Most of Triad's employees are based at its Winston-Salem headquarters.
Freddie Mac has also denied the company's appeal of its suspension as an approved insurer for mortgage loans. Freddie Mac is a government-backed entity that guarantees loans, and without its approval Triad would not be able to find new insurance customers.
Triad, like other mortgage insurers, has been hit hard by the mortgage and housing crisis. Mortgage insurance companies pay back lenders when home owners default on their loans, as many more have in recent months.
Triad's "run-off" will begin on July 15, after which no new policies will be written and the company's operations will be limited to servicing existing policies.
In an announcement, CEO Mark Tonnesen did not go into detail as to why negotiations with Lightyear failed. The two groups had been hoping to agree to create a new mortgage insurer that would have taken over many of Triad's assets and employees.
"Certain hurdles arose that prevented the transaction from being feasible," Tonnesen said.
He said the company is continuing to look for other options "but we are not optimistic that any opportunities will surface."
The failure of negotiations with Lightyear Capital means there will be no new business written by the company. As a result, the company said it will layoff about 100 people in coming weeks. Most of Triad's employees are based at its Winston-Salem headquarters.
Freddie Mac has also denied the company's appeal of its suspension as an approved insurer for mortgage loans. Freddie Mac is a government-backed entity that guarantees loans, and without its approval Triad would not be able to find new insurance customers.
Triad, like other mortgage insurers, has been hit hard by the mortgage and housing crisis. Mortgage insurance companies pay back lenders when home owners default on their loans, as many more have in recent months.
Triad's "run-off" will begin on July 15, after which no new policies will be written and the company's operations will be limited to servicing existing policies.
In an announcement, CEO Mark Tonnesen did not go into detail as to why negotiations with Lightyear failed. The two groups had been hoping to agree to create a new mortgage insurer that would have taken over many of Triad's assets and employees.
"Certain hurdles arose that prevented the transaction from being feasible," Tonnesen said.
He said the company is continuing to look for other options "but we are not optimistic that any opportunities will surface."
Labels: Greensboro, layoffs, Triad region, Winston-Salem
<< Home