Mortgage insurer subsidiary seized by regulators

[Newsjock]

Source: Associated Press

Insurance regulators in Arizona have seized the main subsidiary of private mortgage insurer PMI Group Inc., which will begin paying claims at just 50 percent.

The seizure follows heavy losses at PMI since the housing market bubble burst. Two months ago, state regulators ordered the Arizona-based subsidiary, PMI Mortgage Insurance Co., to stop selling new policies after it came under scrutiny because it didn't have enough money on hand to meet the requirements of regulations in that state.

A statement on PMI's website says a court order, signed by an Arizona Superior Court judge on Thursday, gives Arizona's Department of Insurance full possession and control of the subsidiary. Beginning Monday, PMI says claims will be paid at just 50 percent, in lieu of a moratorium on claim payments. Meanwhile, PMI said it will "continue to support our customers' ongoing policy servicing needs, and loss mitigation programs."

Read more: http://www.google.com/hostednews/ap/article/ALeqM5ibOwPJSAgAxUaI1KVn-6-5nIrqgg?docId=7026f3db13e04098b7cae3bc8f79519d

[eleny]

1. So now they're "...working with a financial adviser to search for ways to raise capital."

[Turbineguy]

2. Yeah

the same one the Greek government got advice from?