MADISON, Wis. (11/29/11)--Mortgage insurer PMI Group Inc.'s (PMI) bankruptcy will have no effect on CUNA Mutual Group's Mortgage Insurance (CMG MI), which was created by PMI and CUNA Mutual in 1993, CUNA Mutual said.
"The bankruptcy filing affects the holding company for PMI," Kim Shaul, senior vice president and general manager, CMG MI, told News Now. "CMG Mortgage Insurance Company (CMG MI) is a joint venture between PMI's mortgage insurance company and CUNA Mutual. The filing will have no impact on the day-to-day operations of CMG MI."
PMI filed for Chapter 11 bankruptcy Wednesday after an Arizona judge rejected PMI's attempt to overturn the October seizure of its mortgage-insurance unit by state regulators (Huffington Post Nov. 23).
PMI lost $412.1 million from continuing operations between January and June, according to a regulatory filing. Because Arizona locked employees out of their offices following last month's seizure, PMI said it could not prepare its third-quarter financial report (Reuters Nov. 10).
CMG MI responded Oct. 21 to the Maricopa County, Ariz., superior court order directing the Arizona Director of the Department of Insurance to take possession and control of PMI (News Now Oct. 27).
PMI currently owns a 50% stake in CMG MI, the other 50% being owned by Madison, Wis.-based CUNA Mutual.
CMG MI's executive leadership emphasized that the company's operations remain strong and that the company's focus on credit unions' mortgage insurance needs is unaffected. CMG MI is a stand-alone, corporate entity with its own capital and dedicated staffing from its shareholders.