Regulators seize control of Arizona’s PMI mortgage insurance branch

Arizona insurance regulators have seized control of a subsidiary of PMI Group, an international private mortgage insurance company. The seizure comes as the latest development in the ongoing struggle between regulatory authorities and the insurers involved in the 2008 mortgage crisis, which was a major factor in the recent economic recession. According to the Arizona Superior Court, regulators have full control of the company and will begin refunding 50% of claims beginning this week. PMI is the second mortgage insurer to be subject to such action in the U.S. When…

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U.S. mortgage insurance on the brink of collapse, changes for the housing market loom

The U.S. mortgage insurance market is on the cusp of a major revolution, but not for the better. The problems stem from the 2008 worldwide economic recession. The recession took a massive toll on the U.S. housing market, resulting in a crisis that persists to this day. Several insurance companies that specialized in mortgages floundered in the wake of the recession and those that survived now hold too much risk to continue writing policies. Insurers lost billions as a result of the housing crisis, losing much of the surplus capital…

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