PMI Mortgage Insurance (PMI) sold its entire investment in RAM Holdings, a subsidiary of RAM Reinsurance Company. The terms and conditions of the sale were not disclosed, but RAM Holdings stock is currently trading at $0.41 a share, down from $0.50 last week, sources told HousingWire. Through its subsidiary, RAM Reinsurance Company provides reinsurance for public finance and structured finance obligations already insured by monoline financial guaranty companies. Primary insurers use reinsurance for protection against deep losses, to limit liability against specific risks and to share liability when those losses overwhelm its capital reserves. PMI impaired its investment in RAM Holdings in 2008, meaning its credit quality rating fell below investment grade, and reduced the carrying value of the investment to zero. Standard & Poor’s downgraded PMI’s own credit rating, along with four other mortgage insurers, last week as continued losses on insurance claims exceed previous expectations. PMI’s credit rating fell from double-B minus to B plus. Other mortgage insurers continue to face difficulties as last week, Bank of America’s (BAC) Countrywide Home Loans unit sued Mortgage Guaranty Investment Corp. (MTG), citing that the mortgage insurer denied millions in claims. According to PMI’s announcement, the sale allows the company to focus on its core US mortgage insurance operation, and the proceeds from the sale will add to PMI’s liquidity position. Write to Jon Prior. Disclosure: the author holds no relevant investments.