Officials at CMG Mortgage Insurance Co., a joint venture between CUNA Mutual Group and PMI Group, are trying to reassure their credit union customers that the financial problems of the latter will have no affect on the JV and its ability to write new MI policies.
A CMG spokesman said the joint venture, which is 50% owned by CUNA Mutual and 50% by PMI, is well-capitalized. As of June 30, CMG MI had the industry's strongest risk-to-capital ratio of 19.7 to 1, she said.
"PMI's current status does not affect the joint venture," said the spokesperson.
Last week PMI's share price plunged by half after the MI posted a $134 million loss and said it failed to meet regulatory requirements that would allow it to write new policies. It was the 16th straight unprofitable quarter for the MI.
CMG is based in San Francisco.
