% | $
Quotes you view appear here for quick access.

PMI Group Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • drugsman12 drugsman12 Apr 11, 2010 8:59 PM Flag

    2006 Modified Pool Exposure

    I'm worried that earnings will be good in Q1 because of the high cure/delinquent rate reported recently.

    But, maybe any benefit of the above will be offset by them coming clean on some of their reserves. Will the lawyers really let them come out and show a profit when they are hundreds of millions if not billions underreserved??

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • PMI will continue to add to reserves despite what delinquencies do in order to catch up to reality, they have been repressing reserves in order to meet statutory requirements.

    • pmi earnings will be slammed just based on their debt revaluation alone, but in terms of delinquencies, sooner or later they will have to fess up about the mod pool delinquencies, at this point, even if they don't post any delinquencies, paid claims are going to take over this segment, claims for which they haven't reserved properly, they can mess with their reserves all they want, but cash flow is alredy negative and will get even more so this quarter.