Az Seizes PMI Group: Orders Stop to Paying on PMI Mortgage Insurance


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EDITOR’S COMMENT: Well here is one insurer that won’t pay the Banks and won’t get federal bailout to do it. This Arizona Group simply doesn’t have the money to pay out on claims. Remember that the Government bailed out AIG so it could pay 100 cents on the dollar to Goldman, Chase, BOA, Citi, Credit Suisse et al. Now the company is saying the most they will is 50 cents on the dollar and there is a veiled threat that they won’t pay anything.Expect other Private Mortgage Insurance companies to do the same. This used to be a highly profitable add-on to mortgage expense that significantly added to the monthly payment and was required by most lending institutions.

Who is getting this money? What due diligence has been done to determine who gets this money. In the previous post I show that the parties foreclosing are basically a fictitious name without any legal existence — so there is nobody to counterclaim against because there is nothing but thin air to fight against. If you are fighting for your life and home in court you are probably fighting against an entity that has no greater legal existence than Donald Duck.

By using a phrase instead of a name of an actual entity, they create the appearance of an entity, especially when the phrase starts out with the name of a Bank that is not acting as a party to the transaction or foreclosure. It’s the ultimate asset protection plan for the Banks —we can sue you, we can take your property, your title and evict you and if we do it wrong, lie or commit outright fraud, you can sue a non-existent entity with no assets.

Judge Stephens in Missouri had no trouble in seeing through this ruse. When you get right down to it, virtually every entity involved in the mortgage origination right through the foreclosure was either a completely fictitious entity or a nominee or unauthroized agent for a fictitious entity. PMI insurers would do well to sit up and take notice that they were scammed. They should refuse to pay any amount to anyone unless the recipient proves that they are in fact the creditor.

By forcing the Banks into court to prove that point, they probably won’t have any takers. Because none of the Banks are the creditors and they know it. But they are very willing to take money from PMI carriers if they can get it. It’s another example of how the servicers and banks are acting against the interests of investors.

Oct. 23 (Bloomberg) — PMI Group Inc., the mortgage insurer that was ordered in August to stop writing policies, said a unit that sells such coverage was seized by Arizona authorities and will pay out claims at 50 percent starting tomorrow.

The Arizona insurance regulator has full possession, management and control of the unit, PMI Group said in a statement on its website. Bill Horning, a spokesman for PMI, didn’t respond to a message seeking comment.

In August, the Arizona Department of Insurance told PMI that the unit, PMI Mortgage Insurance Co., was to halt sales of new policies and stop making interest payments on $285 million in surplus notes. PMI, which is based in Walnut Creek, California, said it needed to provide the regulator with a plan to improve its ability to meet policyholder obligations.

“The department may take appropriate action, including commencing conservatorship proceedings” if PMI fails to satisfy regulators’ demands, the company said on Aug. 19.

That same month, PMI Group posted its 16th straight quarterly loss.

The worst U.S. housing crash in seven decades has pressured mortgage insurers, which pay lenders when homeowners default and foreclosures fail to recoup costs. Home prices fell 3.3 percent in the 12 months through July as a U.S. unemployment rate of more than 9 percent sapped the confidence of potential home buyers.

Most Profitable

Until 2007, private mortgage policies had been among the most profitable types of coverage sold by insurers. From 2000 to 2006, members of the Mortgage Insurance Companies of America reported a profit margin of at least 35 cents for every dollar they collected in premiums.

MGIC Investment Corp., the largest U.S. guarantor of home loans, reported a wider third-quarter loss on Oct. 21 as the cost of claims from mortgage delinquencies rose.

PMI shares have fallen 91 percent year to date, and traded at 31 cents on Oct. 21 in New York before the stock was halted.

–Editors: Sylvia Wier, Joe Sabo

To contact the reporters on this story: Mike Millard in Seattle at; Noah Buhayar in New York at

To contact the editor responsible for this story: Sylvia Wier at

29 Responses

  1. Hi…Thanks for article.Your article is very helpful for those who have no proper idea about Insurance.Please give us such tips like that.Thanks again…Keep posting……

  2. Fuk you.

    And all know who that is directed at.

  3. If the USA President, Congress, people in position,are on our side,

    the people……..

    why doesn’t Congress, the president, etc tells us to save our copper pennies, that are really copper……………


    you have been took once again…………..

    “Pennies minted in the United States prior to the middle of 1982 are composed of 95% pure copper and 5% zinc. As a result, a copper penny is worth considerably more than its face value. Because pennies are made by the U.S mint, they are guaranteed to have the utmost quality and purity. This also makes them easily recognizable, which increases their demand and liquidity.”

    www dot portlandmint dot com/

  4. The goal is debt slavery. and this is self evident now as everything involves a credit card transaction or having a credit score to rent, rent a car, get a job. It all involves you being a good customer or borrower. Moving to credit, cash less society. all under the guise of help and ease of transaction and it is what the people choose. Ever notice getting copper pennies is hard these days:

  5. There are no rules in a war. It is survival. You survive or they survive. You choose. Do you wish to live, or do you wish to succumb and die a slow death.

  6. @anonymous

    you said – When will the administration get it???

    Are you kidding. They have got it. they are just trying everything under the sun, moon and stars to keep time going on and business going on,

    and hoping not too many figure it out…………

    per the THEY LIVE video clips I posted,,,,,,,,,,,,,we have got to get people to put on those sunglasses so they seee. It is repition of meassage over and over and over until a person see’s.

    There are only what 10% that see now. Long way to go. Must get higher ups involved in the scam somehow someway, and that my include some dirty tricks like sending them foreclosure notices so they have to investigate. And I mean it.

  7. cubed2k

    Yes — and the administration “scapegoat” targets — were homeowner victims.

    Once crisis hit — and those in power made their decisions — there was no going back. Decision was — victims were to fall — and take the blame. Administration continues that “BAD DECISION.”

    Problem is — huge fraud cannot remain covered-up. No matter how much they try — there will always be those that continue to expose the fraud.
    It will go on and on — until fully exposed — no matter what.

    There can be no piece meal resolution of the fraud — that ignores the victims — there are too many victims.

    When will the administration get it???

  8. The law firm representing Cap 1 in my lawsuit is in fact not representing Cap 1, they are representing themselves for defaulted debt they purchased and are hiding behind the rules of filing a lawsuit. This is self evident as they provide a copy of an agreement but no names on it……………OMG.

  9. I filed a demurrer as an answer for a sue complaint from a lawyer for Cap 1 credit card default debt. The demurrer naming no contract or agreement. The lawyer responds with an amended complaint and gives an exhibit. The exhibit is a copy of Cap 1 credit card agreement dated 2010.

    Holy cow, no sigs, no name, no nothing on this agreement.

    They think I will get confused and not know what to do…………

    I got a few surprises being pro per…………….

    What a game. It is amazing now having experienced it first hand, it is such BS I can’t believe it………….

    Now, get this,,,,,,,,,,,this law firm represents Cap 1, and they can only provide a copy of an agreement page, which anybody can get……….and it has no name on it identifingy us. WTF. They gave us the case but because of procedure, you may know what not to do. It is time for discovery. Thank you very much.


    I swear to god,,,,,,,,,after I get thru this one,,,,,,,,,,,all debt collectors sending me pieces of paper saying I owe them money

    (which is for charged off defaulted debt that they purchased for little consideration, and the original creditor got paid via insurance)

    ,,,,,,,,,,,,I am going to sue them for RICO. I am learning so I will learn and attack. Enough of this BS. And I mean BULLLLLLLLLLLLLSHITTTTTTTT. It is such a scam it is unbelievable and the courts allow this………….Jesus fuk’on christ already…………never again will I deal with a bank, a bank with the federal reserve system of banks.

  10. @E Tolle

    you said;;;;;;;;;;;;;;

    “The current administration’s view that nothing illegal happened on Wall Street, stated without investigations, is IMO, an indefensible act, a treasonous act against the people. Just like is happening with the Miller AG team, the entire deal is a furtherance of fraud. This system is 100% corrupt from the highest level. They can no longer be trusted.”


    Your statement is exactly what and how Obama won the presidenticy. He said CHANGE, he said LOOK Forward……..we must not worry about the past….it is all double speak for letting the fraud continue and become the norm…………..thus no convictions as per W. Black……… is self evident.

    It was planned from the beginning,,,,,,,,,,to make housing a federal thing and remove the states……………make it global so paper, debt instruments can be traded on wall st while the 99% work. None are the wiser.

    And now we have Gov Perry saying regulation is killing job creation. More double speak and more speak with fork tongue to let wall st and the banks run their game.


  11. E.Tolle—absolutely.
    Who said: “Absolute power corrupts absolutely.”??? Something like that.
    Total corruption is running this country.

  12. Bill Black: What I’d Demand of the Fed
    Bill Black on The Real News with Paul Jay:

  13. […] Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor, Mortgage, securities fraud Tagged: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, PMI, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND Livinglies’s Weblog […]

  14. Mandelman is getting really ticked at the silliness of our good-for-nothing representatives and government…

    When is it going to spell out RE-VO-LU-TION? Some French philosopher (Rene Descartes) wrote once: “Common sense is what’s better shared among human beings”. Wrong. Otherwise, one of those dangerous and deluded clowns might have acted to stop this spiralling insanity. How far does it have to go? If this is not a blatant and orchestrated attempt at starting a world war, I don’t know what is.

  15. Does this mean PMI is going out of business? Will it be allowed to start trading again?

  16. “When was the last time the government stepped into help you “avoid losses you might otherwise suffer?” But that’s the reality we live in. When Joe Homeowner buys too much house, essentially betting that home prices would go up and losing when they drop, he’s an irresponsible putz who shouldn’t whine about being put on the street.”

  17. @ TMT, that Allstate v. CW case….nixed due to being time barred…. how convenient! This is one of Eric Holder and thus Obama’s obvious scams here….extending it out and pretending that nothing happened so that time limitations will save the bankster’s day.

    The current administration’s view that nothing illegal happened on Wall Street, stated without investigations, is IMO, an indefensible act, a treasonous act against the people. Just like is happening with the Miller AG team, the entire deal is a furtherance of fraud. This system is 100% corrupt from the highest level. They can no longer be trusted.

  18. It’s about time someone realises this. I hope the PMI companies stop paying out! What about the Credit Default Swaps? Is there anyway to research these being as they were unregulated?

    How can a “Trustee” in a transaction be neautral if it is given the opportunity to purchase CDS? Makes no sense to me.

  19. Chris Dodd: Wall Street Launching ‘False Attacks’ Against Financial Reform

    “…Critics are launching false attacks against the law in an effort to undermine it,” Dodd wrote.

    Dodd lambasted charges by some conservatives that Dodd-Frank is already hurting small businesses and the economy. Instead, he says, regulatory reforms actually protect small businesses by shielding them from another wealth-destroying crisis, rather than “again leave Americans at the mercy of those who have already ripped off too many families and businesses.”

    Wall Street has aggressively lobbied regulators to weaken the Dodd-Frank regulations since its passage. Just this year they have spent more than $100 million on lobbying to water down financial regulations, according to The New York Times. And with hundreds of rules mandated by Dodd-Frank have yet to be written, banks continue to try to take advantage of every opportunity to do so.

    Critics allege that regulators have already diluted the Volcker rule, previously one of the toughest regulations in Dodd-Frank, by making various exemptions for banks to make trades using their own money.

    “Unless they’re actually embedded in banks, they may have a great deal of trouble determining whether permissible or banned activities are going on,” Andrew Tuch, fellow at Harvard Law School, told The Huffington Post…



    (please sign…and help spread the word…thank you.)

  20. Of Course, THEY are Wall St, the banks, individuals in congress—-

    ” I thought you boys understood. It’s business, that’s all it is. You still don’t get? there ain’t no countries anymore, or good guys. They’re runn’in the whole show, they own everything, the whole god damn planet, they can do whatever they want. What’s wrong with having it good for a change. If we help them, leave them alone, they’re gonna let us make some money…….

  21. It appears to me that PMI was scammed by the banks as well. Just one more payment to the banks for the house they allegedly financed. It would be really interesting to find out how many times the pretender/lenders got paid for one house or each house.


    “the judge is allowing Allstate to proceed with its common law fraud claims”

  23. In the first few sentences of the latest earnings report from Swiss bank UBS AG (UBS: 12.69 +0.79%), the firm reports that it is one of the most capitalized banks in the world.

    However, deep within the report is the declaration that UBS is involved in the early stages of multitudinous lawsuits involving its role in residential mortgage bank securities.

    “From 2002 through about 2007, UBS was a substantial underwriter and issuer of U.S. RMBS,” the company said. “UBS has been named as a defendant relating to its role as underwriter and issuer of RMBS in a large number of lawsuits relating to approximately $45 billion in original face amount of RMBS underwritten or issued by UBS.”

    The bank said the lawsuits are, so far, not widely reported, and many are either in the discovery phase or filed with a motion to dismiss.

  24. How can you collect the claims that are based on a possible FRAUD?
    I just wonder about this along with AIG claims. Paulson was an enabler of MS and GS to become commercial banks and the counter parties to receive the 100 percent claims. And no one is talking about this.

  25. you’re welcome

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