Insurance regulators in Arizona have seized the main subsidiary of private mortgage insurer PMI Group Inc.
A statement on PMI’s website says a court order gives Arizona’s Department of Insurance full possession and control of the Arizona-based subsidiary, PMI Mortgage Insurance Co. The order was signed by an Arizona Superior Court judge on Thursday.
The seizure comes two months after state regulators ordered the company to stop selling new policies.
Beginning Monday, PMI says claims will be paid at just 50 percent.
Shares of the California-based parent company have traded below $1 apiece since late July. PMI shares topped $50 in 2007, before the housing bubble bust. Since then, the company has posted more than $3.5 billion in losses due to claims paid out on foreclosed homes.
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