Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
Nye Lavalle
Banking
SEC Probing MGIC, Radian
By TSC Staff
11/21/2007 11:59 AM EST
URL: http://www.thestreet.com/newsanalysis/banking/10391252.html

Updated from 10:28 a.m. EST

Federal regulators are probing mortgage insurers MGIC Investment (MTG) and Radian Group (RDN) over their failed merger and joint venture in an investment vehicle focused on risky mortgage-backed securities, according to the two companies.

In separate quarterly reports filed Wednesday with the Securities and Exchange Commission, MGIC and Radian said the commission's Division of Enforcement in October had requested documents and other information primarily related to their joint venture, Credit Based Asset Servicing and Securitization, or C-Bass, their failed merger and other subprime mortgage assets.

MGIC in August sued Radian in federal court in Milwaukee, asking for more documentation after Radian advised the New York Insurance Department that it was "not obligated" to complete the all-stock, $4.7 billion merger the two companies had agreed to in February. Regulators and shareholders of both companies had approved the deal.

The two sides mutually agreed to scrap the merger in September, ending any outstanding litigation.

The beginning of the end for the merger came when the two companies in July said they may have to write off investments in C-Bass, which saw "unprecedented losses" due to poor bets on collateralized debt obligations, or CDOs, related to subprime mortgages.

MGIC shares recently were down fractionally to $20.85, and Radian shares were flat at $10.74.
Quote 0 0
Look It's a Link :)

Thank's Good Buddy!

Quote 0 0
Nye Lavalle
It was included in the story and no need to copy
Quote 0 0
Write a reply...