A major U.S. mortgage insurer has filed for chapter 11 bankruptcy
Triad Guaranty Insurance Company, a private mortgage insurer since 1987, has filed for chapter 11 bankruptcy.
The company was to rehabilitate itself with its regulator since December 2012, but announced today chapter 11 would be in the “best interests of stakeholders” providing the opportunity to pursue alternatives to liquidation. The Illinois Department of Insurance had been responsible of Triad’s assets and operations since December 2012.
The company ceased writing new business in the middle of 2008, following the financial and housing crisis. It then entered into voluntary run-off, collecting premiums and paying valid claims, but it officially received a corrective order by the Illinois Director of Insurance in March 2009 to settle all claims with cash and deferred payments.
