LAWSUITS NEWS & LEGAL INFORMATION
American International Group Inc.
Washington, DC: (Jun-26-07) The Office of Thrift Supervision (OTS) brought charges against American International Group Inc., over how to manage sub prime loans. The charge created a model for how one underwrites such risky assets. The OTS stated that the suit created a model that helped institutions focus on appropriate factors when assessing whether a borrower can repay their loans or when the underwriting is questionable.
In a settlement reached, American International Group agreed to pay $163 million to help sub prime borrowers stay in their homes. The OTS reached the settlement with the world's largest insurer over mortgages made by one of its units, Wilmington Finance Inc. between July 2003 and May 2006. The OTS said that the AIG unit responsible for Wilmington Finance failed to manage and control the mortgage lending activities outsourced to WFI in a safe and sound manner, but had taken steps to improve. Most of the settlement money will be used to provide affordable loans to borrowers who face a high risk of foreclosure. [REUTERS: MORTGAGE ASSESSMENT]
Published on Jun-30-07
In a settlement reached, American International Group agreed to pay $163 million to help sub prime borrowers stay in their homes. The OTS reached the settlement with the world's largest insurer over mortgages made by one of its units, Wilmington Finance Inc. between July 2003 and May 2006. The OTS said that the AIG unit responsible for Wilmington Finance failed to manage and control the mortgage lending activities outsourced to WFI in a safe and sound manner, but had taken steps to improve. Most of the settlement money will be used to provide affordable loans to borrowers who face a high risk of foreclosure. [REUTERS: MORTGAGE ASSESSMENT]
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