Calif. Loosens Mortgage Guaranty Insurance Rule

Law360, New York (October 12, 2009, 6:12 PM EDT) -- A California bill signed into law Monday allows some mortgage guaranty insurers to continue writing new business even if their surplus dips below required levels, if they can demonstrate that they are financially healthy.

California SB 291, signed by Gov. Arnold Schwarzenegger, revises existing law to give the state's insurance commissioner authority to allow the insurers to continue writing new business if it appears their business will remain viable.

Previously, mortgage guaranty insurers were required to maintain a certain policyholders surplus and to cease new business...
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