Walnut Creek Insurance Firm Eyes Restructuring

The wobbly housing market continues to plague PMI Group, a Walnut Creek mortgage insurance company that is taking a long look at restructuring its business.

The seizure of PMI's mortgage insurance unit by Arizona insurance regulators could cause a default on company loans, the Contra Costa Times reported Monday.

PMI has not turned a profit since the second quarter of 2007, the Times reported.

PMI announced that, effective Monday, pursuant to action by the Arizona state regulators, it is instituting a "partial claim payment plan" of 50 percent, with the remainder deferred as a policyholder claim. The Arizona Department of Insurance has issued an order "directing full and exclusive possession and control of insurer" — PMI.

PMI has hired three companies with expertise in bankruptcy and company restructuring, the Times reported.