The national mortgage crisis has slammed Triad Guaranty Inc. again, with the Winston-Salem company reporting yesterday a $150 million loss in the first quarter.
The loss was double the $75 million it posted in the fourth quarter of 2007. It had net income of $17.3 million in the first quarter of 2007. The company filed the report after the stock market closed.
Triad Guaranty operates as a private mortgage insurer to residential mortgage lenders, such as banks, credit unions and mortgage brokers. The company has a local work force of about 200.
The company had an earnings loss of $10.09 a share compared with earnings of $1.16 a year ago.
The average forecast of analysts surveyed by Zacks Investment Research was a loss of $2.53 a share for the first quarter.
"The negative trends we encountered during the second half of 2007 continued to impact us during the first quarter of 2008," Mark Tonessen, the chief executive and president of Triad Guaranty, said in a statement. "Housing prices remain under pressure across the country, and the distressed markets of Florida, California, Arizona and Nevada continue to be particularly affected."
Triad Guaranty has responded to increasing loan delinquencies and rising foreclosure rates nationwide by tightening its guidelines, reducing costs and pursuing additional capital.
It announced on May 2 that it has entered into exclusive negotiations with Lightyear Capital LLC, a New York private-equity group, with the goal of forming a new mortgage-insurance company. Lightyear would be the lead investor in the new insurer, and that Triad Guaranty initially would not have an ownership stake.
"These transactions will maintain as many positions as possible in Winston-Salem," Tonessen said.
Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com .
Email
Facebook
Google
Twitter
Favorites
More
Advertisement