Mortgage Insurer Triad Guaranty Inc cuts payout to 60%

More trouble for mortgage servicers. Triad Guaranty Inc. , a troubled mortgage insurer, announced it will reduce it’s payment on claims to 60%. The remaining 40%, for all intents and purposes,will be paid in the form of an IOU. Other insurers are expected to follow Triad’s lead which will result in increased losses for servicers as recovery on bad loans shrink.

HousingWire