Mortgage Daily Logo

PMI to Stop Writing Business

Mortgage News

PMI Mortgage Insurance Co. has been ordered to stop writing new business.

In a letter to its customers on Friday, the Walnut Creek, Calif.-based company said regulators have ordered it to stop writing new policies after Aug. 19.

PMI Mortgage Assurance Co. must also stop doing business.

On pending commitments already in place, policies can be written until Sept. 16.

“We regret that we were not able to grant you a more favorable notice period,” Friday’s message stated. “However, we were uncertain until yesterday how long the notice period would be, and we were not in a position to communicate with you earlier.”

Parent The PMI Group Inc. warned of the impending shutdown in a Securities and Exchange filing earlier this month.

Among alternatives being considered by PMI is an attempt to move production to a separately capitalized mortgage guaranty insurance subsidiary — an alternative actively being pursued with its primary regulator, the Arizona Department of Insurance, as well as with Fannie Mae and Freddie Mac and their regulator, the Federal Housing Finance Agency.

“Since the mortgage crisis began, it is unfortunate for the mortgage industry to now witness the third mortgage insurance company to cease writing new business,” the customer message stated. “As a company completely dependent on private capital, we have had to stabilize our company through extensive internal and external capital initiatives.

“It is our sincere hope that private capital will again prevail to strengthen this industry.”

Triad Guaranty Insurance Corp. stopped issuing new mortgage insurance policies in July 2008.

PMI was founded in 1972 by Preston Martin.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam