Author: Farkas Laura

The White House announced early today that President Bush has approved a plan to expand a housing program to insure loans for credit-worthy homeowners unable to meet mortgage payments and which is expected to help about 500,000 borrowers by the end of this year.     The expansion is designed to help about 100,000 homeowners,… Continue reading BREAKING NEWS: Expanded Homeowners Program Approved by Bush

Yesterday we reported that the International Monetary Fund (IMF) stated that the credit crunch could result in $1 trillion in losses. The IMF also reported that world economic growth will slow to 3.7% in 2008 and 2009, 1.25% lower than growth in 2007.     The downturn will be led by the US, which the… Continue reading IMF: World Economy Forecasted for Slower Growth

According to data published today by the Mortgage Bankers Association, applications for U.S. home mortgages jumped last week, fueled by the ongoing increase in activity for government-backed loan programs.     The MBA said its seasonally adjusted index of mortgage application activity rose 5.4 percent to 725.6 in the week ended April 4. A year… Continue reading Also On the Home Front: Mortgage Apps Up Due to Fed-Backed Loan Programs

OLDWICK, N.J.–(BUSINESS WIRE)–April 8, 2008–A.M. Best Co. has downgraded the financial strength rating (FSR) to A- (Excellent) from A (Excellent) and the issuer credit rating (ICR) to “a-” from “a” for Mid-Continent Insurance Company (Mid-Continent) (Somerset, PA). The outlook for these ratings is stable.    These rating actions follow Mid-Continent’s significant loss reserve strengthening that… Continue reading A.M. Best Downgrades Ratings of Mid-Continent Insurance Company

According to MarketScout, U.S. property/casualty insurance rates dropped an average of 12% in March compared with the same period last year. However, the decrease rate seems to be moderating, according to the Dallas-based electronic insurance exchange. “We anticipate rate decreases to moderate for the remainder of 2008,” Richard Kerr, MarketScout’s chairman and chief executive officer,… Continue reading MarketScout: P/C Rates Drop Moderating

According to the RIMS Benchmark Survey™, the industry’s leading survey of policy renewal prices as reported by corporate risk managers, commercial lines insurance premiums experienced the largest quarterly drop since 2005 during the first quarter of 2008.    Undeterred by mounting claims from the meltdown of the sub-prime mortgage market, the average directors and officers… Continue reading RIMS Benchmark Survey: Commerical Lines Premiums Down

While speaking to reporters before Morgan Stanley’s annual meeting today, Chief Executive Officer John Mack said the credit crisis will last `”a couple of quarters” longer as it spreads to commercial real estate, European lenders with sub-prime holdings and U.S. mid-sized banks. “It’s going to be a difficult year for the Street,” Mack said.   … Continue reading Morgan Stanley CEO Mack Speaks on Credit Crisis at Company Meeting

The following is reaction to the Treasury Department’s “Blueprint for a Modernized Financial Regulatory Structure,” which endorses an optional federal charter system for insurance.     “The current regulatory structures make serving insurance customers across the country complicated, costly and cumbersome. Increasingly, insurance challenges are also national and international in scope. In the 21st century,… Continue reading More Weigh In on Treasury’s Proposal for OFC

Potential losses from the credit crunch could reach $945B or higher, according to the International Monetary Fund (IMF) Global Stability Report.    The overseer of the global company says that losses are spreading from sub-prime mortgage assets to other sectors, such as commercial property, consumer credit, and company debt. It says that there was a… Continue reading IMF Report Says Credit Crunch Could Reach $1 Trillion

The largest U.S. savings and loan, Washington Mutual, stated that will receive a $7 billion capital injection from private equity firm TPG and other investors, about $2 billion more than previously reported.     The company also said it expects to report a first-quarter loss of $1.1 billion, or $1.40 per share. Additionally, it expects… Continue reading WaMu Rescue Comes as $7Billion in Capital Infusion