PMI Group Loses Arizona Court Appeal On Seized Unit

10331_gavel2 PMI Group Loses Arizona Court Appeal On Seized Unit The Arizona Supreme Court has rejected an attempt by the PMI Group Inc. to overturn the seizure of its mortgage insurance business by state regulators.

Dow Jones Marketwatch reports that Judge Richard Gama ruled against PMI, stating that the mortgage subsidiary was ‘currently insolvent’ and that the parent company's claims of financial stability were not supported by ‘loss projections [that] have been off by at least 35 percent every year for the past three years.’

The Arizona Department of Insurance took control of PMI Mortgage Insurance Co. last month and ordered it to pay half of each outstanding claim, with the remaining amount to be indefinitely deferred. PMI will return to court on Jan. 10 for hearing that will appoint a permanent receiver for the seized mortgage business.

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