Technology

Triad Heads into Runoff, as Plans to Create New Insurer Fail 

The credit crisis has claimed its first mortgage insurer. On Thursday morning, Triad Guaranty Inc. [stock TGIC][/stock] said that it had ended its negotiations with Lightyear Capital LLC to form a new mortgage insurance company, and Freddie Mac [stock FRE][/stock] informed Triad that the appeal of its subsidiary’s suspension as an approved mortgage insurer had been denied. Both outcomes effectively put the company out of business; Triad said it will cease issuing commitments for mortgage insurance effective July 15.