Arizona Bill Could Aid PMI, Other Mortgage Insurers

PMI Mortgage Insurance Co., Walnut Creek, Calif., said Arizona legislation that gives state regulators discretionary authority over MI firms in the event they do not meet the state's required minimum policyholder position to write new business would help it as well as its competitors. PMI is domiciled in Arizona and is regulated by the state's Department of Insurance. The company said the bill, which becomes effective in November, recognizes that minimum policyholder position (MPP) should not be the only factor used to evaluate a mortgage insurer's ability to write new business. PMI noted there are 16 states that have a maximum risk-to-capital ratio or MPP. Although the Arizona bill may benefit PMI the most, the capital standard for the state can apply to all MI firms that underwrite policies there.