The regulator for Old Republic International Corp. (ORI) is hosting a hearing next month to review the mortgage insurer’s corrective plan for operating its mortgage insurance subsidiary in run-off mode.
Earlier this year, Old Republic made it known that its Republic Mortgage Insurance (RMIC) subsidiary would have to operate in run-off mode due to steep losses and a need for more capital.
The North Carolina Department of Insurance has called a hearing for Oct. 16 to review and discuss whether the deferred payment claim obligation structure it established should be revamped.
The mortgage unit’s corrective plan aims to increase the cash portion of settlement claims from 50% to 60%, a move that would reduce the deferred payment obligation retained in claim reserves from 50% to 40%.
The plan also seeks to let Republic Mortgage Insurance execute its run-off plan and to ensure the continued operation of the mortgage unit under supervision for the time period needed to accomplish all of the plan’s objectives.
