guaranty insurance

8 Dec 2017 | When Obligated Parties Fail to Pay Debts | 640×423

guaranty insurance

Most bonds that are issued are insured by a financial guaranty firm, also referred to as a monoline insurer, against default.

Originally a form of insurance issued back in the 1930’s as mortgage guaranty insurance and forty years later was revised to include several different forms, including municipal bond guaranty insurance, limited partnership investor bond insurance, residential value insurance, to name a few. Today, most states exclude mortgage guaranty or any consumer-oriented credit insurance from their definition of financial guaranty insurance.

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