WALNUT CREEK, Calif., April 8, 2008 /PRNewswire-FirstCall/ -- The PMI Group, Inc. ("PMI" or the "Company") today commented on its financial strength following today's ratings announcement from Standard & Poor's ("S&P") for the Company, PMI Mortgage Insurance Co, and other related entities.
"PMI has significant financial resources to pay insurance claims on defaulted loans, and we are a strong risk counterparty for our customers," said Steve Smith, Chairman and CEO of The PMI Group, Inc. "The private mortgage insurance industry and PMI are going through challenging times as we navigate the current U.S. housing market. PMI's capital position and the resources we have available to pay claims have not been affected by S&P's ratings decisions."
Smith continued, "Mortgage insurance is a stabilizing force in today's uncertain housing, mortgage and credit markets. The mortgage insurance industry and PMI are well positioned to meet the needs of borrowers and lenders while continuing to pay claims arising from foreclosures."
The PMI Group, Inc.
The PMI Group, Inc. , headquartered in Walnut Creek, CA, provides innovative credit, capital, and risk transfer solutions that expand homeownership and fund essential services for our customers and the communities they serve around the world. Through its wholly and partially owned subsidiaries, PMI offers residential mortgage insurance and credit enhancement products, financial guaranty insurance, and financial guaranty reinsurance. PMI has operations in Asia, Australia and New Zealand, Canada, Europe, and the United States. For more information: http://www.pmigroup.com/.
Cautionary Statement: Statements in this press 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 our financial strength and claims-paying ability. 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. Such factors include, among others, national or regional recessions, and further deterioration in the housing, mortgage and related credit markets. In particular, declines in housing values and/or housing demand, deterioration of borrower credit, higher unemployment rates, changes in interest rates, higher levels of consumer credit, higher mortgage default and claim rates, lower cure rates, higher claim sizes, the aging of our mortgage insurance portfolios, adverse changes in liquidity in the capital markets, the inability of loan servicers to process higher volumes of delinquent loans, and the contraction of credit markets could negatively affect our losses, loss reserves and paid claims. The ratings downgrades announced by S&P, and/or future ratings downgrades, if any, will likely negatively impact us in a variety of ways and could, in isolation or taken together, materially negatively affect, among other things, our U.S. and international business prospects and revenues, our ability to compete in the U.S., Europe, Canada, Australia and Asia, our GSE eligibility status in the U.S., the cost of and/or availability of financing, our consolidated financial condition, and our results of operations and cash flows. Other risks and uncertainties are discussed in our SEC filings, including our Annual Report Form 10-K for the year ended December 31, 2007 (in Item 1A). We undertake no obligation to update forward-looking statements.
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