Industry NewsMortgage

PMI Group trims losses to $274 million

Fannie, Freddie seek remediation plan

Mortgage insurer PMI Group Inc. said it lost $274 million in the first quarter, compared with a $102 million profit a year ago. Most of the losses -- $172.5 million -- stemmed from U.S. mortgage insurance operations, while another $88 million was related to the company's investment in bond insurer FGIC Corp. PMI Group's mortgage insurance operations include PMI Mortgage Insurance Co. and affiliated mortgage insurance and reinsurance companies, plus equity in earnings from a joint venture, CMG Mortgage Insurance Co. "The significant weakening of the U.S. residential mortgage, housing, credit and capital markets continues to negatively affect our U.S. Mortgage Insurance Operations segment, and will continue to do so throughout 2008," PMI said in a regulatory filing. Mortgage insurance operations generated $537 million in losses and loss adjustment expenses, with net loss reserves boosted by $368.2 million because of an increase in default inventory, higher clai...

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