Hedge funds led by Paulson & Co. and Maverick Capital are piling into mortgage insurers in a bet that some of the companies worst hit by the U.S. housing crash will be among the biggest winners in the rebound.
Four mortgage insurers will pay more than $15 million in penalties to settle claims they paid illegal kickbacks to lenders in exchange for business, the Consumer Financial Protection Bureau said today.
American International Group Inc., the insurer that was rescued by the U.S. government in 2008 after soured bets on mortgage securities, is building a unit to buy individual home loans amid a rebound in the housing market.
Intrade, the betting website that halted trading last month amid a probe into suspected financial irregularities, told customers it has found a $700,000 shortfall in client funds as it seeks their backing for a survival plan.
A unit of American International Group Inc., the insurer majority owned by the U.S. government, filed a notice of appeal challenging a judge’s order to pay more than $45 million to SunTrust Banks Inc. to fulfill mortgage insurance contracts.
American International Group Inc., the insurer that counts the U.S. as its largest shareholder, promoted Donna DeMaio to run the mortgage guaranty business as the company expands bets on a housing rebound.
American International Group Inc., the insurer bailed out by U.S. taxpayers, is investing in home- loan insurance, a business that Aldo Zucaro, chief executive officer of rival Old Republic International Corp., said doesn’t make sense.