An order from the Arizona Department of Insurance stopping the issuing of new commitments from PMI Mortgage Insurance and PMI Insurance Co. will not impact CMG Mortgage Insurance Co., CUNA Mutual Group said.
In a statement, PMI Group Inc. said under the order, PMI Mortgage Insurance and PMI Insurance Co. were required to cease issuing new mortgage insurance commitments effective as of close of business Aug. 19 unless otherwise approved by the director or supervisor of the Arizona Department of Insurance.
CMG Mortgage Insurance operates as a corporate joint venture between CUNA Mutual Insurance Society and PMI Mortgage Insurance Co. CMG Mortgage Insurance said there will be no interruption in daily operations and it will continue to write business in all 50 states.
In an Aug. 19 statement, CUNA Mutual Group Vice President Sean Dilweg said, “In addition to the company's solid operating performance and strong financial footing, CMG MI continues to enjoy the strong support of its joint venture partner CUNA Mutual Group.”
Dilweg went on to say “CMG MI will continue to benefit tremendously from CUNA Mutual's management and financial strength as well as PMI's ongoing operational services.”
Under the Arizona order, PMI Mortgage Insurance and PMI Insurance may issue mortgage insurance policies under pending commitments through the close of business on Sept. 16, according to a statement from PMI Group.
PMI Mortgage Insurance is also required to cease making interest payments on the $285 million in aggregate principal amount of surplus notes that it has issued in favor of the company.
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