Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

Mortgage Insurer Quitting Contract Underwriting

Mortgage Insurer Quitting Contract UnderwritingPMI to end contract services April 15

March 16, 2009

By staff

A new business strategy has one major mortgage insurer canceling its contract underwriting services.PMI Mortgage Insurance Co. notified its customers Friday about the move.

“PMI continues to carefully evaluate the strategic services we provide for the industry,” a letter to one customer said. “As we focus on our core mortgage insurance business, we have made the decision to discontinue providing contract underwriting services.”

The exit is effective April 15, and all loans must be submitted for underwriting by April 10.

A PMI spokesman said around 35 full-time positions and fewer than 50 temporary jobs are impacted by the move. Some affected employees could find employment in other departments, and some temporary workers may find other assignments at the lender they are currently associated with.

Headcount before the layoffs was 700 full-time employees.

PMI said the letter served as written notice to parties that entered into an underwriting services agreement, “side letter,” vendor services agreement or other agreement with the Walnut Creek, Calif.-based insurer.

“We continue to welcome your loans that require mortgage insurance underwriting at our two regional operations centers located in Illinois and Texas,” the letter stated.

Last month, PMI abandoned third-party originated business.

The strategic moves come as policies written on an industry-wide basis sank in November to the lowest level on record and defaults reached 106,484 in January — the highest since at least 1999 based on the oldest available data.

next story

back to current headlines

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...