Triad Received 'CO' From Illinois Director of Insurance

Triad Guarantee recently received a corrective order from the Illinois director of insurance, which would impact its insurance subsidiaries, Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation.Under the order, effective June 1, all valid claims under Triad's mortgage guaranty insurance policies will be paid 60% in cash and 40% by the creation of a deferred payment obligation. "Continuing volatility in the housing and mortgage markets, a high incidence of fraud and noncompliance with underwriting programs in the loan origination process make it very difficult to forecast Triad's future financial position and claims," said Triad CEO Ken Jones. The company said "there is more uncertainty today than when we entered run-off in July 2008." The MI, the nation's smallest, is in the process of self-liquidation. Its shares trade for just 29 cents each.