Mortgage Insurer PMI Group Posts $274 Million Loss
We've Nattered about the mortgage insurance co's going under...
Mortgage insurer PMI Group said it swung to a Q1 loss of $274 Million vs year ago profit of $102 Million,
due to hefty payouts on default claims and charges to write off its investment in bond insurer FGIC.
Delinquencies and defaults among mortgages have increased rapidly over the past year.
For each default and foreclosure, PMI is forced to pay out claims to investors that hold the mortgages.
PMI said it continues to evaluate various capital raising initiatives, including reinsurance,
the possible complete or partial sale of assets and capital markets transactions.
The company affirmed its outlook for 2008 paid mortgage insurance claims of $825 million to $975 million.
Hattip to AP
Mortgage insurer PMI Group said it swung to a Q1 loss of $274 Million vs year ago profit of $102 Million,
due to hefty payouts on default claims and charges to write off its investment in bond insurer FGIC.
Delinquencies and defaults among mortgages have increased rapidly over the past year.
For each default and foreclosure, PMI is forced to pay out claims to investors that hold the mortgages.
PMI said it continues to evaluate various capital raising initiatives, including reinsurance,
the possible complete or partial sale of assets and capital markets transactions.
The company affirmed its outlook for 2008 paid mortgage insurance claims of $825 million to $975 million.
Hattip to AP
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