Mortgage insurer PMI Group Inc. has filed for bankruptcy this week. The surprise move comes after Arizona insurance regulators seized control of the company amidst allegations of fraud and malpractice. The insurer sought to overturn the actions of regulators through the court system, but and Arizona judged rejected the company’s claims. The California company, whose mortgage insurance unit is housed in Arizona, is now seeking protection through bankruptcy. The company has listed a scant $225 million in assets, with more than $700 million in debt. PMI is one of the…
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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…
Read MoreFederal Housing Finance Agency reveals strategy to boost business
The Paragon Report has now been released, providing an analysis of the opportunities for investment in the property and casualty insurance industry as well as MGIC Investment Corporation and Radian Group , Inc. equity research. Earlier in September, the acting director of the Federal Housing Finance Agency (FHFA), Edward DeMarco, gave a number of different explanations of the ways in which there would be changes to the conservatorship of the Government Sponsored Enterprises (GSEs). Some of those changes included a new method for decreasing the exposure to long-term risk by…
Read MoreU.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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