Triad Guaranty Inc., the Winston-Salem-based mortgage insurer which is operating in run-off, lost $4.4 million during the second quarter, compared with net income of over $79 million one year prior.
Ken Jones, president and chief executive, explained, "The second quarter of 2010 included the positive impact of a significant change in reserve factors coupled with an additional accrual of earned premiums related to modified pool structures. These were the primary drivers of the increase in reported income for that quarter and make comparisons to the 2011 second quarter difficult."
The company's total risk-in-force fell to $6.9 billion at the end of the quarter from $8.5 billion one year earlier. Its deficit in assets also declined to $593 million from $648 million in the same time frame.
He added Triad received fewer new notices of default during the quarter, but also there were fewer cures and a lower number of rescissions. Still the company's inventory of delinquent loans fell to 24,855 from 26,484 at March 31.
Furthermore, the average age of the delinquent inventory continues to increase as settled claims was $97 million, up from the first quarter's $86 million, but well below the levels seen in 2010, including $116 million in the second quarter of that year.
"We believe the drop in net settled claims is primarily related to widely reported loan servicers' issues surrounding foreclosure policies and practices, including foreclosure moratoriums," Jones said.
