The PMI Group, Inc. Endorses New Foreclosure Prevention Initiative
WALNUT CREEK, Calif., Dec. 6 /PRNewswire-FirstCall/ — The PMI Group, Inc. (NYSE: PMI) announced support for the U.S. Department of the Treasury’s new plan to bring together mortgage industry participants, government agencies, and non-profit organizations to reduce preventable foreclosures.
The plan, announced today, is designed to help homeowners facing foreclosure transition into sustainable mortgages. It aims to accomplish this by increasing efforts to reach and assist eligible borrowers facing rate resets and streamlining refinancing and loan modification efforts.
“This is an unprecedented time in the mortgage industry, and industry participants need to work together to create opportunities for borrowers to stay in their homes by looking beyond traditional foreclosure prevention models. The Treasury's plan complements other industry programs, such as PMI's initiative to contact and help delinquent borrowers through a neutral, third party counseling agency,” said Steve Smith, Chairman and CEO of The PMI Group, Inc. “As an industry, we should be the architects of a solution to this crisis that offers qualified borrowers a chance for long-term success. That means that we all need to play a role in the recovery.”
PMI is a member of the HOPE NOW alliance, a cooperative effort among mortgage industry participants to increase early outreach to borrowers before their interest rates reset or their mortgages become delinquent. According to Secretary of the Treasury Henry Paulson, 50 percent of foreclosures occur without the borrower ever contacting their servicer or lender, and statistics indicate that early outreach increases the chances of saving a borrower's home.
“In addition to helping families facing foreclosure, we need to act now to help families with a chance for successful homeownership before they get into trouble and their loans become delinquent,” Smith continued. “We need to ensure that homeownership continues to be a cornerstone of American culture and of the American dream.”
The PMI Group, Inc.
The PMI Group, Inc. (NYSE: PMI), 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 news release that are not historical facts or that relate to future plans, events or performance are “forward-looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause PMI’s actual results to differ materially from those expressed or implied in this release. Risks and uncertainties related to PMI’s business are discussed in PMI’s SEC filings, including its Form 10-K for the year ended December 31, 2006 and Form 10-Q for the quarter ended September 30, 2007. There can be no assurance that this program will have the expected results. We undertake no obligation to update forward-looking statements.
SOURCE The PMI Group, Inc.
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