NEW YORK ( TheStreet) -- Mortgage insurer PMI Group ( PMI) says Arizona regulators have seized its primary subsidiary.
In a message posted on the home page of its Web site, the company said the Arizona Department of Insurance has obtained an order giving it "full possession, management and control" of PMI Mortgage Insurance Co. The order is dated Oct. 20. Under regulators' control, the company on Monday will begin paying only 50% of claims, the message says. The remaining amount will be deferred as policyholder claims, the message adds. > > Bull or Bear? Vote in Our Poll In August, Arizona ordered PMI Mortgage Insurance to stop selling new insurance policies. Like other mortgage insurers, PMI got hit hard by losses on policies written during the housing bubble. The company's shares have fallen from more than $4 one year ago to recent levels of about 30 cents.
Shares of PMI Group (NYSE:PMI) were gapping down Monday morning with an open price 26.7% lower than Friday's closing price. The stock closed at 30 cents yesterday and opened today's trading at 22 cents.