Regulators Seize Main PMI Subsidiary
The main subsidiary of mortgage insurer PMI Group Inc. has been seized by insurance regulators in Arizona, and will begin paying just 50% of claims beginning Monday, according to its website.
The remainder of each claim will be deferred, the company said.
PMI becomes the second mortgage insurer since the housing-bubble burst to be subject to restrictions on payments, as fallout from the bursting of the housing bubble takes another turn for the worse. The insurer joins smaller rival Triad Guaranty Inc., where policyholders since 2009 have gotten 60% of their claims paid in cash with the balance deferred.
According to an order from an Arizona Superior Court judge posted on the company’s website, the Arizona Department of Insurance now has “full and exclusive power of management and control of PMI.”
The order is dated Oct. 20.
Rest here…
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I saw this report this morning on Bloomberg news..These criminals are who they should have been siezing all along, not the peoples homes and businesses…..!!!! Make the criminals pay for their crimes!!