Mortgage insurers slump again

Defaults stayed high in May, Triad Guaranty cut to junk by Moody’s

SAN FRANCISCO - June 30 2008 - Mortgage insurers slumped again on Monday as an industry report confirmed that defaults remain high in the business.

Shares were also dented after mortgage insurer Triad Guaranty was downgraded to junk status by Moody’s Investors Service late Friday.

MGIC Investment fell 21% to $5.52, while PMI Group dropped 16% to $1.97.

Mortgage Insurance Companies of America (MICA), an industry group, said on Monday there were 67,967 defaults in May. So-called cures, which measure problems that have been resolved, were 40,687 last month.

Mortgage insurers slump again
by Alistair Barr | MarketWatch