Ambac Assurance Corp. may delay payouts on policies insuring $50 billion of residential mortgage-backed securities under a plan unveiled by Wisconsin’s insurance commissioner. The plan to restructure the portfolio of policies, filed today in state court in Madison, will pay 25% of claims now, and the balance over the next nine years at 5.1% interest, Insurance Commissioner Sean Dilweg said. Judge William D. Johnston would have to approve the department’s proposed terms. “The plan of rehabilitation maximizes claims-paying resources, limits damage to policyholders and provides a clear framework to address claims in an orderly and reasonable manner,” Dilweg said in a statement. Ambac Assurance is the Wisconsin-based bond insurance unit of Ambac Financial Group Inc., based in New York. It was the second-largest bond insurer before the onset of the credit crisis.
Ambac may stretch payments for 9 years under Wisconsin insurance plan
October 8, 2010, 1:59pm
Jason Philyaw was a reporter with HousingWire through mid-2012.see full bio
Most Popular Articles
HUD tests a new Operation Breakthrough for today’s housing crisis
“Gallia est omnis divisa in partes tres.” All Gaul is divided into three parts. Julius Caesar used those words more than 2,000 years ago to begin an account of military conquest. America’s housing affordability challenge might be described similarly. Like Gaul of yore, it divides into three parts: talk, action, and outcomes. Identifying the three […]
Jun 23, 2026
-
Builders planned for undersupply, now demand is the swing factor
Jun 23, 2026 -
Fannie Mae to expand title pilot program, Pulte says
Jun 24, 2026 -
Why we can’t get more housing construction in the US
Jun 24, 2026 -
FHFA pushes GSEs to embrace chattel loans in Duty to Serve proposal
Jun 24, 2026 -
Housing demand holds steady as regional inventory trends reshape the market
Jun 25, 2026
Latest Articles
How the housing market survived the Iran conflict
Mortgage spreads improved in 2026, keeping rates below 7% and helping demand hold up, even as oil spiked and inflation stayed hot.
-
VA loan fee hike proposal advances in Congress, drawing industry pushback
-
Homebuilding scale emerges as a fiduciary priority for boards
-
Decade-long accessibility push earns Seattle agent fair housing honor
-
Don’t give away your future: Why servicing is becoming a strategic asset
-
Florida homebuyers sue Compass over $475 transaction fee
Jason Philyaw was a reporter with HousingWire through mid-2012.see full bio