ori submitted a plan to the north carolina department of insurance for the runoff of rmic - the plan is for THE DEPARTMENT TO TAKE OVER RMIC!!!!!, that is simply unbelievable, ORI is ASKING the department to take control of rmic, why in h*ll would they do that, leave rmic as an asset of ORI but take control of it, that just ain't gonna happen, if it does, NCDOI will be a laughingstock, it is looking more and more like RMIC is going to be seized and put into receivership, and ORI's debt will be due, wow, that just blows me away, from the 10Q:
The Company's principal mortgage insurance subsidiary, Republic Mortgage Insurance Company ("RMIC"), breached the minimum capital requirement during the third quarter of 2010. RMIC had previously requested and, subsequently received waivers or forbearance of the minimum policyholder position requirements from the regulatory authorities in substantially all of the states. Following several brief extensions, the waiver from its domiciliary state of North Carolina expired on August 31, 2011, and RMIC voluntarily discontinued writing new business. By a subsequent agreement with the North Carolina Department of Insurance ("NCDOI"), RMIC and its sister company, Republic Mortgage Insurance Company of North Carolina ("RMIC-NC'), agreed to discontinue writing new business in all states and limit themselves to servicing the run-off of their existing business.
RMIC thereafter filed a proposed run-off plan with the NCDOI for its approval. Under the plan, RMIC and/or a successor entity would operate under the control and supervision of the NCDOI. The plan has not yet been approved and may not be approved. If the plan is not approved, RMIC is likely to become capital impaired and could be placed in receivership by the NCDOI. If the plan is approved, RMIC and/or a successor entity would most likely become capital impaired. In such circumstance there is also no assurance that the run-off would be successful, that all legitimate claims would be honored, and that the Company would be permitted to re-enter the mortgage guaranty business by the NCDOI and/or Fannie Mae and Freddie Mac, both of which are currently in the conservatorship of the U.S. Government.