Private mortgage insurer United Guaranty is cutting 160 employees, mainly at its Greensboro, North Carolina headquarters, according to a statement from the company.
The struggling unit, which is a part of the AIG disaster, had roughly 500 employees in the area; the layoffs account for less than 15 percent of United Guaranty’s total worldwide workforce.
The layoffs were the result of market conditions, which have been less than favorable for some time now, though the company said it continues to write new loans and book solid business.
However, PMI providers have been getting rocked by losses since the mortgage crisis got underway in late 2007.
In 2008, United Guaranty reported about $2.5 billion in losses and another $500 million in the first quarter of this year.
This has forced the company to make a series of underwriting changes, with the latest bringing the minimum credit score up to 680 for all loans and 720 for broker originated loans.
Back in December, private mortgage insurance defaults topped 100,000 as new insurance written fell precipitously.