PMI the First MI to Dump Contract Underwriting

The PMI Group, the nation's second largest mortgage insurer, said it will shutter its contract underwriting unit in mid-April, the first MI to pull the plug on this once lucrative side business.PMI said the move is part of its strategic plan to focus on its core mortgage insurance business. "Contract underwriting services are labor-intensive and require a commitment of resources and capital that we believe is better used elsewhere to serve our customers," said David Katkov, executive vice president and chief business officer of PMI. In years past lenders that did not have in-house underwriters (or if their in-house underwriters were busy) turned to the MIs to pick up the slack. Calls to the other mortgage insurers to see if they are considering a similar move were not returned at press time.