Bleak Profit Outlook For PMI

From the AP:

Fitch placed the "AA" insurer financial strength rating of Genworth Mortgage Insurance Corp. and its affiliates on watch for possible downgrade. Fitch downgraded the IFS rating of MGIC Investment Corp.’s mortgage insurance subsidiary Mortgage Guaranty Insurance Corp. to "A+" from "AA." The ratings remain on rating watch negative, Fitch said.

"Although improved mortgage-insurance performance in 2008 and subsequent vintage years should enable MGIC to ultimately return to profitability over time, the present stressful mortgage environment has resulted in pressure to the company’s existing financial position," Fitch said.

Fitch also lowered the IFS ratings of PMI Mortgage Insurance Co. and its affiliates to "A+" from "AA." The ratings remain on rating watch negative.

Additionally, Fitch downgraded the IFS rating of Republic Mortgage Insurance Corp. to "AA-" from "AA," and placed the rating on watch for possible downgrade.

Applications for PMI rose considerably in 2007, as borrowers with limited capital for down payments opted for safer fixed-rate mortgages backed by PMI.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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