PMI Provides Statement on Prime Focus of U.S. Mortgage Insurance Business



    
    Presentation Highlights Portfolio Characteristics
    

    WALNUT CREEK, Calif., March 15 /CNW/ -- In response to current conditions
affecting the mortgage market, The PMI Group, Inc. (NYSE:   PMI) today posted a
presentation outlining the characteristics of the Company's mortgage insurance
portfolio in the United States on its website at
http://www.pmigroup.com/shareholders/.
    
    Logo:  http://www.newscom.com/cgi-bin/prnh/20061023/SFM058LOGO )
    
    "In the current market, we believe it's important to differentiate
ourselves and clarify the prime focus of our business in the United States,"
said Steve Smith, CEO of The PMI Group, Inc. "Our principal focus is on
sustainable homeownership for individuals and families purchasing homes with
less than a 20 percent down payment who have 'A' or prime quality credit.
Ultimately we believe that the increased recognition of risk in the mortgage
marketplace will be a positive for PMI and the market overall."
    Although there is no official definition of less than 'A' quality loans,
often referred to as subprime, the mortgage industry generally defines them as
loans having credit scores of 619 or below. Some market participants use a
score of 580 or 575 or below as the demarcation line. At 2006 year end, 92
percent of PMI's U.S. portfolio's risk in force (RIF) was 'A' or prime credit
quality, defined as having a credit score of 620 or higher. The remaining 8
percent is composed of 5.9 percent with credit scores from 575 to 619, with
only 2.1 percent having credit scores below 575. The less than 'A' quality
loans PMI does insure are balanced by borrower, loan, and property
characteristics that mitigate against risk layering.
    According to the Mortgage Bankers' Association, subprime loans comprise
about 14 percent of the total number of outstanding mortgages in the United
States.
    David Katkov, President of PMI Mortgage Insurance Co., PMI's U.S.
subsidiary, explained, "Our mortgage insurance portfolio in the United States
is focused in core housing, meaning loans of moderate size to first-time
homebuyers purchasing a primary residence. The majority of the loans we insure
have fixed rates. We believe that we have taken a prudent approach, managing
the dispersion of risk by credit score, loan and property type, geographic
region, and other key characteristics."

    General Characteristics of PMI's U.S. Mortgage Insurance Portfolio as of
December 31, 2006:

    
    -- Prime loans (credit scores of 620 and above) represent 92 percent of
       primary risk in force.
    -- Fixed rate loans account for 81 percent of primary risk in force.
    -- Approximately 89 percent of loans are for primary residences.
    -- Average primary loan size is $142,500.
    -- The portfolio is well diversified across all 50 states.

     The presentation is available at http://www.pmigroup.com/shareholders/.

    About The PMI Group, Inc.
    

    The PMI Group, Inc. (NYSE:   PMI), headquartered in Walnut Creek, CA, is an
international provider of credit enhancement products that promote
homeownership and facilitate mortgage transactions in the capital markets.
Through its wholly owned subsidiaries and unconsolidated strategic
investments, the company offers residential mortgage insurance and credit
enhancement products domestically and internationally, financial guaranty
insurance, and financial guaranty reinsurance. Through its subsidiaries, The
PMI Group, Inc. is one of the world's largest providers of private mortgage
insurance with operations in the United States, Australia, New Zealand, and
the European Union, as well as one of the largest providers of mortgage
guaranty reinsurance in Hong Kong.  For more information: www.pmigroup.com.

    Cautionary Statement: Statements in this release that are not historical
facts, or that relate to future plans, events or performance are "forward-
looking" statements within the meaning of the Private Securities Litigation
Reform Act of 1995.  These forward-looking statements include our beliefs with
respect to the diversification and performance of our U.S. mortgage insurance
portfolio and with respect to our credit risk management approach.  Readers
are cautioned that forward-looking statements by their nature involve risk and
uncertainty because they relate to events and depend on circumstances that
will occur in the future.  Many factors could cause actual results and
developments to differ materially from those expressed or implied by forward-
looking statements.  Our US Mortgage Insurance Operations' losses incurred may
be negatively affected by many factors including, among others, national or
regional recessions, declines in housing values, higher unemployment rates,
higher levels of consumer credit, deteriorating borrower credit, higher
interest rates, war or terrorist activity, adverse weather events, the
seasoning of our U.S. mortgage insurance portfolio, and unexpected performance
within our U.S. mortgage insurance portfolio, which includes high LTV loans,
ARMs, less-than-A quality loans, interest only loans, and payment option ARMs,
for which we generally expect higher default and claim rates.  Other risks and
uncertainties are discussed in our SEC filings, including our Form 10-K for
the year ended December 31, 2006.  We undertake no obligation to update
forward-looking statements.





For further information:

For further information: Investors, Bill Horning of The PMI Group, Inc.,
 +1-925-658-6193, or Media, Beth Haiken of The PMI Group, Inc.,
+1-925-658-6192 Web Site: http://www.pmigroup.com/

Organization Profile

PMI GROUP, INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890