Freddie Mac Works with Mortgage Insurer over Ratings Downgrade
Triad Guaranty Insurance Corp., a mortgage insurer that is approved to work with government-sponsored enterprise Freddie Mac, now has a BBB- rating from Fitch—a drop from its previous AA- status.
While the downgrade could affect Triad’s Type I insurer eligibility status with Freddie Mac, the GSE is giving the private mortgage provider time to develop a plan to restore its AA- status.
“Freddie Mac also has decided not to automatically change Triad Guaranty's eligibility status from a Type I to a Type II Insurer under a new Freddie Mac policy announced on February 13, 2008,” the company said. “As part of that policy, Triad Guaranty must send Freddie Mac a written commitment to develop a complete remediation plan for restoring its AA- rating. The commitment must be made within 24 hours of the downgrade.”
Triad Guaranty has 90-days to submit its remediation plan for Freddie Mac’s review.
