While it assured members three other monoline insurers willcontinue to meet future obligations, Southwest Corporate recordedOTTIs on mortgage-backed securities guaranteed by two insurers inits newly released April 2009 financial statements.

The New York-based Financial Guaranty Insurance Co., whichrepresents about 22% of Southwest's insured investments, had itsexternal ratings recalled by the three major agencies. Even thoughFGIC is currently timely paying 100 percent of all principal andinterest claims, Southwest said it recorded only 70% reliance onFGIC-backed investments.

A second insurer that enhances much less of Southwest'sinvestment portfolio, Syncora Holdings, was instructed by the NewYork Insurance Department to suspend claim payments, effectiveApril 29, unless it restored regulatory surplus by May 29. Thatdeadline was extended to tonight according to Syncora's Web site.(www.syncora.com)