Stock Value
About The PMI Group
The PMI Group, Inc., through its subsidiary, PMI Mortgage Insurance Co. (MIC), provides residential mortgage insurance products to mortgage lenders and investors in the United States.
U.S. Mortgage Insurance Operations
The company offers various mortgage insurance products to serve the capital and credit risk mitigation needs of its customers. It also owns 50% of CMG Mortgage Insurance Company (CMG MI), a joint venture that provides mortgage insurance to credit unions.
MIC is licensed in 50 states, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands. Under its monoline insurance licenses, MIC offers mortgage insurance covering first lien, one-to-four family residential mortgages. Residential mortgage insurance protects mortgage lenders and investors in the event of borrower default, by reducing and eliminating the resulting credit loss to the insured institution.
Products
Primary Mortgage Insurance: Primary insurance provides the insured with first-loss mortgage default protection on individual loans at specified coverage percentages. Its primary mortgage insurance business is offered on a loan-by-loan basis to lenders through its ‘flow’ channel.
Modified Pool Insurance: The company has offered modified pool insurance products, primarily to Fannie Mae and Freddie Mac (collectively the GSEs) for regulatory capital relief or the reduction of mortgage default risk. Modified pool insurance may be used in tandem with primary mortgage insurance or may be placed on loans that do not require primary insurance. In 2010, the company restructured a significant portion of its modified pool exposure (including through commutations).
Joint Venture: CMG MI offer mortgage insurance for loans originated by credit unions. CMG MI is a joint venture, equally owned by MIC and CUNA Mutual Insurance Society (CMIS). CMIS is part of the CUNA Mutual Group, which provides insurance and financial services to credit unions and their members.
Customers
The company’s U.S. customers are primarily mortgage lenders, depository institutions, commercial banks, and investors.
Competition
The company's government competitors include the Federal Housing Administration and the Veterans Administration.
Significant Events
In 2010, the company sold its investment in FGIC Corporation, the holding company of Financial Guaranty Insurance Company.
History
The PMI Group, Inc. was founded in 1972.
