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AIG To Stop Insuring 40-year & $0-Down Mortgages

AIG AIG has joined CMHC and Genworth in announcing the end of insured 40-year amortizations and 100% financing.  That subdues minor speculation that AIG would buck the federal government’s June 9 announcement.

Andy Charles, president of AIG United Guaranty Canada, said today,  “We support this direction and will amend our product line-up to reflect the new policy set out by the Department of Finance, commencing October 15, 2008.”

The industry is now focusing on Canada’s #4 insurer, PMI.  PMI is apparently meeting with the Department of Finance at the end of the month to discuss the new restrictions and potential alternatives.