Despite PMI Mortgage Insurance Co.'s recent regulatory woes, executives at CMG Mortgage Insurance Co. (CMG MI) – the joint venture between PMI and Madison, Wis.-based CUNA Mutual Group – say CMG MI's operations remain strong. Last week, the Arizona Director of the Department of Insurance seized control of the PMI unit, citing concerns over the mortgage insurer's capital levels.
In a statement posted on its website, CMG MI says the regulatory action has no impact on its claims-paying activities, further noting that CMG MI is a stand-alone corporate entity with its own capital and dedicated staffing.
"We remain dedicated to providing the same excellent service credit unions have grown to expect from our company," Kim Shaul, CMG MI's senior vice president and co-general manager, said in a statement.
"CMG MI will continue to benefit from CUNA Mutual's management and financial strength as well as PMI's ongoing operational services and expertise," says CUNA Mutual Group Vice President Sean Dilweg, reiterating a similar statement issued in August, when the Arizona regulator announced it was placing PMI under supervision.
CMG MI notes that it maintains investment-grade ratings from Standard & Poor's and Fitch Ratings and that its liquidity-to-reserves ratio stood at 2-to-1 as of June 30. The company further says cash and readily marketable securities of $328 million back its claims-paying resources, and that the liquidity compares favorably to its $171 million in loss reserves for claims as of the end of the second quarter.