Tag: Freddie Mac

Louisiana home insurance customers with UPC might need new policies soon

Logan B.
Home insurance Policy Cancelled

Commissioner Donelon said that the first to be affected are those with Freddie Mac-backed mortgages. Louisiana Insurance Commissioner Jim Donelon is urging home insurance policyholders to find out if they are likely to lose their home insurance through UPC and to take action early if so. Florida-based United Property and Casualty is the latest insurer to find itself struggling in the state. The home insurance company will stop writing new policies in Louisiana starting January 1, 2023. “That is because their financial rating has been downgraded, to the point where…

Read More

Will stopgap measure dig Florida home insurance market out of crisis?

Marc
Florida home insurance - Home in Florida

Regulators have announced a plan using Citizens to avoid consequences of financial ratings agency downgrades. Regulators have announced that they will be using Citizens as a part of a Florida home insurance stopgap plan in the hopes of avoiding the ramifications of financial ratings agency downgrades across several property insurers. The plan is meant to provide a temporary fix, making sure residents will maintain their coverage. The Florida home insurance stopgap plan will use the state’s insurer of last resort, Citizens, as a financial backstop. The insurer will take on…

Read More

Old Republic maybe getting a second look

Old Republic International, a multinational insurance organization, exited the mortgage insurance business just over two months ago. The company had been operating under a waiver provided by federal insurance regulators that allowed it to sell policies. When the waiver expired, the company took the opportunity to renovate its mortgage policies to accommodate changes made to insurance laws in a number of states. Now, the insurer is looking to re-enter the national market, hoping to gain favor with federal regulators and investors. Old Republic’s goal hinges on whether the company can…

Read More

Goldman Sachs sued by Liberty Mutual regarding losses from Freddie Mac investments

Investment banker Goldman Sachs & Co. was the target of a lawsuit by Liberty Mutual Insurance Co. and a number of its subsidiaries, for “making materially misleading statements and omissions” in November 2007, for Freddie Mac preferred stock offerings.  According to the lawsuit which was filed at a Massachusetts U. S. District Court, Liberty Mutual and its subsidiaries – Employers of Wausau, Safeco, Liberty Life, and Peerless – had made investments of $37.5 million within the Freddie Mac (Federal Home Loan Mortgage Corp) Series Z offering, which was made up…

Read More