The Arizona Department of Insurance has seized PMI Mortgage Insurance Co., a wholly owned subsidiary of The PMI Group Inc. The action comes more than two months after the regulator, citing capital concerns, instructed PMI to cease writing new commitments.
According to a note posted on PMI's website Friday, under the terms of an ordered issued Oct. 20 by the department, ‘the Arizona Department of Insurance now has full possession, management and control of PMI.’
The regulator's order requires PMI to adhere to a partial-claim payments plan, under which PMI will pay just 50% of its claims, with the remaining amount deferred as a policyholder claim.
In its note, PMI says it will continue to support clients' servicing needs and loss mitigation programs.
"PMI will maintain all systems, processes and contact points for policy servicing, loss mitigation, and claims operations just as we do today," the company says.