Republic next mortgage insurer to fail
01/26/2012
Republic Mortgage Insurance Company, the sixth largest U.S. mortgage insurer with nearly
$1.5 billion in assets, was placed under regulatory supervision by North Carolina regulators on
January 19. It is the largest subsidiary of Old Republic International Corp (ORI) and follows the
failure in August of
PMI, the third-largest mortgage insurer.
According to the order, the Commissioner of Insurance feared the continuation of business by
Republic Mortgage Insurance Co would be "hazardous to the public or to holders of its policies or certificates
of insurance. Claims payments will be limited to no more than fifty percent, with the balance deferred and credited
to a temporary surplus account. A corrective plan has been ordered to be completed to bring the company into
compliance with North Carolina statutes.
As of September 30, 2011, Republic Mortgage Insurance Co reported capital of $100.3 million and a loss of
$286.6 million. It had been rated "Weak" since 2008 by Weiss Ratings and held an E ("Very Weak")
rating when ordered into supervision.
See also:
Underwater Mortgage Insurers Help Borrowers Stay Afloat
Mortgage Guaranty Insurance – Market Collapsing, Insurers Next?