Industry News

PMI waiting on FGIC to release Q4 results

Insurer discontinuing coverage of 'above 97' loans
Published on Feb 22, 2008

Private mortgage insurer PMI Group Inc. said it will postpone releasing of fourth-quarter and year-end financial results because of delays in financial reporting at another company it owns a large stake in -- troubled bond insurer FGIC Corp. PMI Group, which reported an $86.8 million third-quarter loss in October on increased claims and loss reserves, said it has compiled fourth-quarter results for its own U.S. mortgage insurance and international operations but is waiting on fourth-quarter results from FGIC that will affect the company's bottom line. According to its last quarterly report, PMI Group owns a 42 percent stake in FGIC Corp., the holding company of Financial Guaranty Insurance Co. FGIC has applied to New York regulators to spin off its municipal bond business into a separate company to insulate it from losses on riskier guarantees of securities with exposure to losses in mortgage lending. FGIC is one of several "monoline" bond insurers contemplating reorganiza...

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