Freddie Suspends Triad

Triad Guaranty Inc., Winston-Salem, N.C., said it has been suspended by Freddie Mac as an approved mortgage insurer. The company had previously fallen out of Freddie Mac and Fannie Mae Type I mortgage insurer eligibility requirements due to downgrades by the rating agencies. Triad said it will appeal the decision and that Freddie Mac will continue to purchase loans to be insured or committed to by insured by Triad during appeals process. Mark K. Tonnesen, president and chief executive of Triad, said, "Freddie Mac and Fannie Mae are both continuing to accept new insurance written or committed by Triad. We welcome the opportunity to provide both the GSEs and our regulators with more details concerning our anticipated voluntary run-off plan and the benefits we believe can be achieved by completing the proposed transaction with Lightyear." Triad added it is still in negotiations with Lightyear Capital LLC, New York, over the creation of a new mortgage insurance company.