WALNUT CREEK, CA - The PMI Group, Inc.'s (NYSE: PMI) principal operating subsidiary, PMI Mortgage Insurance Co. (MIC), today announced that Freddie Mac has approved PMI Mortgage Assurance Co. ("PMAC") as a direct issuer of mortgage guaranty insurance. PMAC is a subsidiary of MIC. Pursuant to Freddie Mac's approval, PMAC may write new mortgage insurance business in certain states in the event that MIC is required to cease writing new mortgage insurance business in those states due to its inability to meet applicable regulatory capital requirements. Freddie Mac's approval, which is subject to certain conditions and restrictions, will remain in effect until December 31, 2011. As previously announced, Fannie Mae has also approved PMAC as a direct issuer of mortgage guaranty insurance.
PMAC, which holds capital of approximately $28 million, will insure new loans under the same policy terms and conditions as MIC, and will contract with MIC to provide it with sales, operations, and other support services.
PMI Mortgage Insurance Co. (NYSE: PMI), is headquartered in Walnut Creek, CA and provides credit enhancement solutions that expand homeownership while supporting our customers and the communities they serve. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products.
Source: The PMI Group