PMI Mortgage Insurance Co. has been seized by its primary regulator, and a partial claim payment plan has been instituted.
Back in August, the Walnut Creek, Calif.-based company said that the Arizona Department of Insurance ordered it to stop writing new policies. At the time, the company hoped to move production to a separately capitalized mortgage guaranty insurance subsidiary.
But an “order directing full and exclusive possession and control of insurer” has been obtained by the director of Arizona’s insurance department, according to a notice on the mortgage insurer’s Web site addressed to policyholders, insureds and servicers of PMI-insured mortgages.
The regulator now has full possession, management and control of PMI.
On Monday, Oct. 24, a partial claim payment plan is being instituted. The plan is being used in lieu of a claim payment moratorium.
The plan calls for claim payments to be made at 50 percent. Any remaining amount will be deferred as a policyholder claim.
“We will continue to support our customers’ ongoing policy servicing needs and loss mitigation programs,” the notice stated. “PMI will maintain all systems, processes, and contact points for policy servicing, loss mitigation and claims operations just as we do today.”
Questions are being directed to 800.377.4764.
Related:
PMIÂ to Stop Writing Business
PMI Mortgage Insurance Co. has been ordered to stop writing new business.
