Triad Sees Deficit Related to MI Unit's Runoff In Mixed Results

While there was some good news in the first quarter results for Triad Guaranty Inc., its deficit in assets related to the runoff of its mortgage insurance business increased to nearly $733 million as of March 31. Ken Jones, president and chief executive, explained this means to meet all of its existing obligations, Triad would have to earn an equal amount during the remaining run-off period. The company had a net loss of $28 million for the first quarter 2010, an improvement over losses of $79 million for the fourth quarter 2009 and $55 million in the first quarter 2009. Jones said Triad's cure rates increased in the first quarter for the first time since the first quarter 2009, attributing it to improved results from the government's loan modification efforts. He added that the first quarter of a year normally sees an improvement in the cure rate, and thus right now "we are unable to determine whether the lower first notices of default and the improved cure rates experienced during the quarter reflect typical seasonality, or whether they mark the beginning of a recovery in the U.S. mortgage and housing markets."