""Fannie Mae"":http://www.fanniemae.com and ""Freddie Mac"":http://www.freddiemac.com have both suspended ""PMI Mortgage Insurance"":http://www.pmi-us.com/ and its affiliates PMI Insurance Co. and PMI Mortgage Assurance Co. as approved mortgage insurers.[IMAGE]
Mortgages insured by any of the three PMI units with note dates before May 19, 2011, or after September 16, 2011, will no longer be purchased or securitized by either of the GSEs.
To allow lenders and sellers to clear their pipelines, the two mortgage financiers will continue to accept delivery of PMI-insured mortgages with notes dates between May 19, 2011 and September 16, 2011. Loans that fall into this eligibility window must be delivered to the GSEs by December 30, 2011.
As an exception, mortgages with existing PMI certificates of insurance will continue to be eligible for sale to Freddie Mac if they are refinanced under the Freddie Mac Relief Refinance Mortgages offering, both Same Servicer and Open Access options, and the coverage is continued through modification of the existing mortgage insurance certificate.
Fannie Mae will continue to accept delivery of certain PMI-insured refinanced (RefiPlus, DU RefiPlus, and mod-[COLUMN_BREAK]
ified or refinanced balloons) only if continuation of the coverage is effected through modification of the existing mortgage insurance certificate.
Freddie notes the suspension does not impact mortgages already sold to Freddie Mac that are insured by PMI, adding that there are no changes to the servicing requirements for mortgages insured by PMI.
Fannie says servicers should continue to renew coverage with the PMI mortgage insurer when existing policies expire unless notified otherwise.
PMI Mortgage Insurance and PMI Insurance Co. were placed under the supervision of their primary regulator, the Arizona Department of Insurance on Friday. The two affiliates were ordered to cease issuing new mortgage insurance.
PMI Mortgage Assurance Co. had previously been approved by Fannie Mae and Freddie Mac to provide mortgage guaranty insurance in states where the other primary insurer were unable to continue to write new business, but on Friday, parent company PMI Group said PMI Mortgage Assurance Co. would also no longer issue new insurance policies.
Both PMI Mortgage Insurance and its sister company PMI Insurance Co. fell below the minimum policyholdersÃ¢â‚¬â„¢ position required by the state of Arizona.
If the affiliates do not provide the Arizona regulatory agency with a satisfactory plan to cure deficiencies in their financial condition by mid-October, further action may be taken, including conservatorship or liquidation.
The parent company PMI Group received notice last week from the New York Stock Exchange (NYSE) that its share price has fallen below the minimum listing requirement of an average closing price of $1.00 per share over 30 consecutive trading days. PMI has six months to bring its share price back into compliance or its stock will be delisted from the exchange.