PMI Mortgage Insurance Co. (MIC) said that the Arizona Department of Insurance, a primary state regulator, has exercised discretion to permit MIC to continue writing new mortgage insurance business in the event it falls below Arizona capital requirements. The department's waiver remains in effect until December 31, 2011.
The company said that the department has issued the waiver following an examination of its operations, financial condition, capital/liquidity position, and its present and future business prospects. In the letter granting the waiver, the department concluded that MIC currently has sufficient capital and resources to fulfill its current and projected policyholder obligations.
Stephen Smith, chairman and CEO of PMI, said: The Department’s action reflects the importance for MIC to continue to write new mortgage insurance in support of the US housing recovery, and affirms our view that MIC has the financial resources to pay its policyholder obligations during a very challenging economic environment.
“PMI’s continued ability to write new mortgage insurance will enable qualified low-down-payment borrowers to purchase a home, fostering sustainable homeownership that strengthens communities across the nation.