PMI: Paid Claims in Line with Guidance

The PMI Group Inc., Walnut Creek, Calif., said paid claims for its U.S. mortgage insurance business for the first six months of 2008 were approximately $370 million, in-line with its guidance for the full year. For the full year, PMI is tightening its U.S. paid claims guidance range to the upper end of its projections. Originally the company said paid claims would range from between $825 million to $975 million; now it projects between $900 million to $975 million. PMI added its loss mitigation efforts are benefiting homeowners. Loan workouts reviewed and approved directly by PMI for the first six months (excluding workouts completed by PMI's delegated servicing partners) of 2008 totaled 3,217, an increase of 124% over the previous six months. Nearly 53% of those approved workouts helped homeowners remain in their homes, the company claimed. The remaining 47% of workouts resulted in a short sale, loan assumption or deed-in-lieu that allowed the homeowner to avoid foreclosure.