PMI Says Private Equity Investor Weighs Taking Stake

PMI Group Inc. (PPMIQ), the mortgage insurer that filed for bankruptcy protection last year, said a “well- known private equity investor” expressed interest in injecting capital in the company in exchange for a stake.

The insurer is consulting with a committee of unsecured creditors about the proposal, the Walnut Creek, California-based company said today in a regulatory filing.

A rebound in the housing market is fueling investor interest in mortgage insurance after companies like PMI and Triad Guaranty Inc. were hobbled by losses in the real estate slump. NMI Holdings Inc. raised $550 million in April to open a mortgage insurer, and Essent Guaranty Inc., backed by Goldman Sachs Group Inc. and JPMorgan Chase & Co., bought Triad software and other assets in 2009.

The expression of private equity interest “is not binding and there can be no assurance that any definitive agreement for an investment will be reached or that any transaction will be completed,” the company said in the filing, which didn’t identify who was weighing the capital injection. Calls to PMI seeking comment weren’t returned.

To contact the reporter on this story: Zachary Tracer in New York at Ztracer1@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.