The main subsidiary of mortgage insurer PMI Group Inc. has been seized by insurance regulators in Arizona, and will begin paying just 50% of claims beginning Monday, according to its website…… Mortgage insurers have suffered from billions of dollars in losses on policies they sold in the years just before the housing bubble burst. PMI alone has reported about $3 billion in losses since the fourth quarter of 2007.
CDS signaling trouble for Chinese banks – macrobusiness.com.au
Credit markets are also now showing distrust in Chinese banks. Credit default swaps spreads for Bank of China and China Development Bank have surged according to Société Générale, and they are rising at much faster rates than the rest of Asia ex. Japan
via CDS signaling trouble for Chinese banks – macrobusiness.com.au | macrobusiness.com.au.
Home building down 5% in August as slide continues – latimes.com
U.S. builders broke ground on fewer homes in August, more evidence that the housing market remains depressed.
The Commerce Department said Tuesday that builders began work on a seasonally adjusted annual rate of 571,000 homes last month, a 5% decline from July and a three-month low. That’s less than half the 1.2 million homes that economists say is consistent with healthy housing markets.
via Home building down 5% in August as slide continues – latimes.com.