Citing worries about subprime mortgages, Fitch Ratings has downgraded the insurer financial strength rating of Security Benefit Life Insurance Co., Topeka, Kan., and is keeping it on Rating Watch Negative. Fitch said the downgrade stems from Security Benefit's acquisition of Rydex Investments, specifically from concerns about the financing of the transaction and its effect on Security Benefit's balance sheet fundamentals. Fitch said it was maintaining the negative watch status based on Security Benefit's exposure to subprime mortgages through its investment in mortgage-backed securities. "The company's surplus exposure to subprime-related investments is significantly above average for the life insurance industry, and Fitch believes that deteriorating conditions in the mortgage market and the economy as a whole could further impair the quality of Security Benefit's portfolio of asset-backed securities," the rating agency said.
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Because of rising home values, more transactions have proceeds over the federal tax exemption, especially in California, a CoreLogic study found.
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The top five producers had an average dollar loan volume of more than $140 million in 2023.
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The threats to companies loom as borrowers face soaring homeowners insurance costs, ex-Ginnie Mae head Ted Tozer explains.
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April 22