American International Group Inc. -- which originates and insures mortgages, and is also a major investor in mortgage-backed securities -- says the downturn in U.S. housing markets is hurting its business, but that the company's exposure to subprime investments is limited. In a Securities and Exchange Commission filing Thursday, AIG reported net income for the quarter was up 34 percent to $4.28 billion. That's despite a 63 percent decline in profits from consumer finance, including mortgage lending, and a $255 million loss in capital markets. AIG and its subsidiaries are involved in four aspects of mortgage lending. The company makes mortgage loans through its subsidiary American General Finance Inc., and provides mortgage guaranty insurance through another subsidiary, United Gu...
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