The PMI Group late Friday told its mortgage banking clients that it has immediately halted 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 is no longer approved by Fannie Mae to offer mortgage insurance. Therefore it is no longer writing policies in any states.
The PMI Group statement said. "Although the company is exploring opportunities to further capitalize PMAC and to obtain the restoration of the GSE's approvals of PMAC as an eligible mortgage insurer, there can be no assurance that these efforts will be successful."
According to figures compiled by National Mortgage News 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%.
