WINSTON-SALEM, N.C., April 11 /PRNewswire-FirstCall/ -- Triad Guaranty
Inc. (Nasdaq: TGIC) today said that despite rating downgrades it continues
to be a qualified mortgage insurer with the GSEs and is continuing to write
new mortgage insurance business.
Mark K. Tonnesen, President and CEO of Triad Guaranty Inc. said, "The
GSEs are supporting Triad. There is no change in our status as a qualified
mortgage insurer. We appreciate their cooperation and the confidence this
gives to our customers. This is an important step in the transaction that
we are currently working on. Negotiations are progressing and our current
goal is to complete this transaction by the end of this quarter. If the
transaction is completed, we would put our existing insurance operations
into a voluntary run-off and a newly capitalized mortgage insurer, which
would be a separate company from Triad Guaranty Inc., would be created.
While there are no assurances that our efforts to complete this transaction
will be successful, the support of key stakeholders while we continue
negotiations is something we can build upon.
"We recently repaid in full our $80 million credit facility. With
approximately $1 billion of assets in our insurance company, we have
significant claims paying resources at our disposal and our claims paying
activities continue as usual.
"These are trying times for our company. Although we face significant
challenges, we remain committed to all key stakeholders as we attempt to
complete this transaction."
Triad Guaranty Inc.'s wholly owned subsidiary, Triad Guaranty Insurance
Corporation, is a nationwide mortgage insurer providing credit enhancement
solutions to its lender customers and the capital markets. This allows
buyers to achieve homeownership sooner, facilitates the sale of mortgage
loans in the secondary market and protects lenders from credit
default-related expenses. For more information, please visit the company's
web site at http://www.triadguaranty.com
Certain of the statements contained in this release are
"forward-looking statements" and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
statements include estimates and assumptions related to economic,
competitive, regulatory, operational and legislative developments. These
forward-looking statements are subject to change, uncertainty and
circumstances that are, in many instances, beyond our control and they have
been made based upon our current expectations and beliefs concerning future
developments and their potential effect on us. Actual developments and
their results could differ materially from those expected by us, depending
on the outcome of a number of factors, including our ability to enhance our
capital resources, the possibility of general economic and business
conditions that are different than anticipated, legislative, regulatory,
rating agency and other similar developments, changes in interest rates,
the housing market, the mortgage industry and the stock market, stronger
than anticipated competitive activity, as well as the factors described
under "Risk Factors" and under "Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995" in our Annual Report on Form 10-K
for the year ended December 31, 2007 and in future filings by us in other
reports and statements that we file with the Securities and Exchange
Commission. Forward-looking statements are based upon our current
expectations and beliefs concerning future events and we undertake no
obligation to update or revise any forward-looking statements to reflect
the impact of circumstances or events that arise after the date the
forward- looking statements are made.
SOURCE Triad Guaranty Inc.
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Related links:
http://www.triadguaranty.com
CONTACT:
Ken Jones, Senior Vice President and CFO of
Triad Guaranty Insurance Corporation, +1-336-723-1282 ext. 1105,
kjones@tgic.com
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