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.
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MGIC, Radian End Merger Deal
As Joint Venture Sustains Losses
By KEVIN KINGSBURY
September 5, 2007 7:45 a.m.
Mortgage insurers MGIC Investment Corp. and Radian Group Inc. have agreed to terminate their merger agreement some two months after the deal became jeopardized by losses at their subprime-mortgage joint venture.

"Current market conditions have made combining the companies significantly more challenging. Both MGIC and Radian believe it is in their best interests to remain independent companies at this time," the companies said. They said all litigation the firms filed against each other will be withdrawn and that no money changed hands in ending the merger agreement.

Last month, MGIC said it doesn't have to complete the acquisition of Radian, initially valued at $4.9 billion, in light of the "impairment" in their joint venture, Credit-Based Asset Servicing & Securitization LLC, known as C-BASS. Radian disagreed with MGIC's assessment and legal action between the companies ensued.

MGIC's announcement about possibly pulling out came days after it and Radian said the "unprecedented" disruptions in the market for risky mortgages might have wiped out their stakes in C-BASS, valued at more than $1 billion two months ago. The losses fueled market speculation that the two insurers, which each own 46% of C-BASS, wouldn't be able to sell their holdings in the venture, thereby potentially derailing the merger. The companies had intended to reduce their holdings in C-BASS so as not to have to consolidate it onto the combined company's balance sheet, and had been counting on a sale to pay for part of a planned share buyback after the merger, which was originally expected to close in October.

Shares in Milwaukee-based MGIC, the nation's largest home-loan insurer, and Philadelphia-based Radian have taken a heavy beating since their disclosure about losses in C-BASS, which specializes in buying at a discount mortgages extended to people with weak credit and repackaging them into mortgage-backed securities to sell to investors.

MGIC's stock was at $62.93 the day before the takeover agreement was announced Feb. 6; the stock closed Tuesday at $30.34. That has cut the Radian deal's value by 52%.

Radian will hold a 10 a.m. EDT conference call to update its strategy and "key financial information." Chief Executive S.A. Ibrahim said, "While there are significant credit challenges in today's mortgage market, we also believe that there are tremendous opportunities for our company in the mortgage insurance and financial guaranty markets."

There was no premarket trading for shares of Radian or MGIC
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Hi All,

Can't help but make a post on this. 

I'm wondering if, after Gary went dark and began his meetings with the N.Y. attorney firms & several others, has anything to do with with the MGIC & Radian deal falling through?

It's no secret that Gary has targeted Litton, C-BASS & MGIC.  This smells of a "divide & conquer" move.  Time will tell.

Best to all.

Bob
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srsd

Hi Bob,  How are you doing.  I still think about you and your family and pray that everything works out for you.

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TommyD
Also check the link below that states C-Bass/Litton Loan may be up for sale...


http://www.bizjournals.com/philadelphia/stories/2007/09/03/daily10.html
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Hi SRSD,

We're doing well.  Not back in our home, YET!, but it won't be long now.  Thanks for the thoughts and prayers, they sure have come in handy. 

In regards to sale of Litton and C-BASS, I doubt Litton will be sold.  Right now Littton is the income producer for all.  There was talk about Fannie buying Litton but taking on the litigation liability would be foolish.  Buying Litton would be like buying The Associates.  Ask Citi.  IMHO

Might have some interesting news today.  I should hear from Gary after a hearing. 

Best To All,
Bob
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