Real Estate News 05/15/08
HOMEOWNERS INSURANCE
Several Allstate insurance subsidiaries were suspended from writing new policies after an appeals court ruled Wednesday that the company could be punished by the state for not turning over documents on how it sets property insurance rates. However, the suspension may not last long, as Allstate has continued to give regulators the documents requested while the dispute went through the courts.
LAWSUIT
A federal judge in Los Angeles has ruled that a shareholder lawsuit against Countrywide Financial Corp. executives and directors should go to trial, rejecting arguments to dismiss the case. The suit contends that Countrywide directors and officers failed to provide enough oversight of the lender and misled shareholders about the company’s true financial state.
HOUSING AID
Housing and finance experts discussed the mortgage crisis and ways to restore stability in the system earlier this week in Washington, D.C. "The right way to tackle the mortgage crisis is to have pinpoint, targeted efforts that address each variable in the housing crisis without asking the taxpayer to bailout lenders or to cover loans that are best described as moral hazards," said FHA Commissioner Brian Montgomery.
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