PHOENIX – PMI Group has informed its mortgage banking clients it is halting the writing of all new insurance policies.
The move comes after the Arizona Department of Insurance placed two PMI subsidiaries under a supervisory order. The two units, PMI Mortgage Insurance Co., and PMI Insurance Co., were forced to stop issuing commitments for new policies effective close of business that day.
A statement issued by PMI Group says the two units will work with its customers, the regulator and the government-sponsored enterprises to facilitate run-off. Under the order, PMI can issue policies from existing commitments through Sept. 16.
A third subsidiary, PMI Mortgage Assurance Co., had been approved by Fannie Mae/Freddie Mac. However, as a result of the Arizona order, PMAC no longer is approved by Fannie Mae to offer mortgage insurance. Therefore, it is no longer writing policies in any states.
According to figures compiled by National Mortgage News, an affiliate of Credit Union Journal, and the Quarterly Data Report, PMI ranks second nationwide in terms of policies-in-force with outstanding coverage on $124 billion of home mortgages. It has an MI market share of 16%.
In response, CUNA Mutual Group earlier issued a statement reassuring that the action will not have any affect on CMG Mortgage Insurance Company or its clients.
