The stock value of major mortgage insurers plummeted with the Dow Jones Thursday, with The PMI Group (PMI) dropping more than 50%. Mortgage insurers fell alongside the Dow as it experienced a 500-point free fall after the financial markets expressed fears tied to general economic weakness in the United States and spreading debt concerns in Europe. The PMI Group’s 50% plunge pushed the company’s stock in the 40 cent-per-share range at close, down from 88 cents per share at close a day earlier. PMI investors were riled not only by weak indicators in the overall economy, but by the company’s own earnings statement, which warned the firm may have to stop writing new business if it fails to reach a deal with the insurer’s primary regulator, the Arizona Department of Insurance. To date, PMI is not in full compliance with the regulator’s capital requirements and could be forced to suspend the writing of new business if the situation is not resolved, PMI disclosed. Fellow mortgage insurer, MGIC Investment Corp. (MTG) saw its stock plummet 20% during Thursday afternoon trading. Genworth Financial (GNW), meanwhile, faired better. Other mortgage industry stocks also suffered on the day. Write to Kerri Panchuk.

Most Popular Articles

NAR bans “pocket listings”

The National Association of Realtors board of directors voted 729-70 on Monday to ban the controversial practice of “pocket listings.”

Nov 12, 2019 By

Latest Articles

Guild Mortgage promotes 3 employees to top positions

Guild Mortgage, an independent mortgage lender, announced late last week that it has promoted three senior members of its leadership team as it continues to grow.

Nov 19, 2019 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please