As Triad Moves into Runoff, CEO Tonnesen Leaves
Triad Guaranty Inc. (TGIC) said Thursday that president and CEO Mark K. Tonnesen will retire from the company, effective August 15. William Ratliff, currently chairman of the board, will assume Tonnesen's role on an interim basis, the company said in a press statement. Tonnesen will remain a consultant to Triad for two years following his retirement, per the terms of a revised agreement with the company. He may not have much to do, given the turn of events that have transpired against Triad during the second quarter. On June 19, Triad disclosed that it would exit the mortgage insurance business and transition into runoff after a slew of ratings downgrades left the firm unable to regain authorization to write new insurance for either Freddie Mac (FRE) or Fannie Mae (FNM). The company also saw plans to court an investor in the hopes of funding a new mortgage insurer fail. "My plan was to retire at an appropriate time," Tonnesen said. "Now that the company's fundamental business and mission have changed, that time is here." Triad's Ratliff said the company has already begun a search for a successor, but did not provide further details. Disclosure: The author wsa long FRE and held no direct positions in TGIC or FNM when this story was written, although indirect holdings may exist via mutual fund investments. HW reporters and writers follow a strict disclosure policy, the first in the mortgage trade.