US Lawmakers Launch Probe Into Insurance Rating Firm Demotech (Correct)

Three US senators opened an inquiry into insurance ratings firm Demotech and whether its assessments may be exposing Fannie Mae and Freddie Mac — and ultimately taxpayers — to growing risks tied to climate-driven insurer failures.

In a letter sent Tuesday to Fannie Mae acting Chief Executive Officer Peter Akwaboah and Freddie Mac CEO Kenny Smith, the three Democratic lawmakers questioned why the government-backed mortgage giants continue to accept Demotech ratings as sufficient proof of insurer financial strength, despite evidence that insurers carrying those ratings have failed at unusually high rates. In a separate letter, they pressed Demotech on its own finances ...