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Daily Real Estate News | December 7, 2009 | Mortgage Insurers Denying Claims
Mortgage insurers are increasingly likely to reject claims and hold lenders responsible for bad loans, says a report by Moody’s Investors Service.

Insurers have rescinded about $6 billion in claims since January, after their reviews indicated that lenders failed to do due diligence when underwriting the loans during the peak years of the boom.

If these claims are successfully denied, the losses will be transferred to the banks, but Moody’s says that many banks have already written off the majority of these bad loans.

Source: Reuters News, Al Yoon (12/04/2009)