PMI Mortgage Assurance Co. (PMAC), an existing subsidiary of Walnut Creek, California-based ""PMI Mortgage Insurance Co."":http://www.pmi-us.com/ (MIC), has been approved by ""Freddie Mac"":http://www.freddiemac.com/ as a direct issuer of mortgage guaranty insurance.[IMAGE] [COLUMN_BREAK]
Pursuant to Freddie Mac's approval, PMAC may write new mortgage insurance business in certain states in the event that MIC is required to cease operations in those states due to its inability to meet applicable regulatory capital requirements.
This approval will remain in effect until December 31, 2011.
The company, which holds capital of approximately $28 million, will insure new loans under the same policy terms and conditions as MIC. In addition, PMAC will contract with MIC to provide it with sales, operations, and other support services.
Freddie Mac's approval follows PMAC's approval from ""Fannie Mae"":http://www.fanniemae.com/ in February. ""As DSNews.com reported"":http://dsnews.comarticles/mortgage-insurers-receive-gse-approval-2010-02-19, under Fannie Mae's approval, PMAC may write new mortgage insurance business, if any, in 16 states in the event that MIC cannot.