FBR Halts Coverage of The PMI Group

Mortgage & Real Estate

FBR Capital Markets late Friday said it has halted coverage of The PMI Group, Walnut Creek, Calif., the nation’s second largest MI firm.

The decision comes about 10 days after the New York Stock Exchange suspended trading in PMI’s shares, and the Arizona Department of Insurance took control of the company.  

At June 30, the California-based MI had $121 billion of single-family policies-in-force, ranking second nationwide behind MGIC Investment Corp., according to figures compiled by National Mortgage News.

Sources said that up until last week PMI’s management was scurrying to find outside capital to prop up the firm.

PMI has not written any new policies in two months and likely will go into “run-off” mode.

About two weeks ago, two top executives of the insurer – EVP and general counsel Andrew D. Cameron and corporate controller Thomas H. Jeter – resigned, effective immediately.

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