The PMI Group, Inc. (PMI) is a global and complex financial company. http://www.pmigroup.com They claim to offer ?financial products that reduce risks, lower costs, and expand market access for residential mortgages and securities, public finance obligations, and asset-backed securities?. In layman?s terms, The PMI Group, Inc. is a publicly-traded corporation (NYSE: PMI), that is, among other things, a worldwide provider of Private Mortgage Insurance. Click here for the results of a Hoovers search on The PMI Group In 2000 PMI became a major shareholder of Fairbanks Capital Holding Corp. of which Fairbanks Capital was a wholly-owned subsidiary. It?s interesting to note that at the time The PMI Group made the purchase, GE Capital Equity Investments, Inc., FGIC Services, Inc., Nomura/Fairbanks Investment Trust and FSA Portfolio Management, Inc also owned shares in Fairbanks.It?s also of interest to note that at the same time but in a separate but related transaction, PMI desired to invest approximately $10 million in the Alta Capital Investment Fund, LP, ("Alta Capital"). At the time, Alta Capital acquired mortgages that were to be serviced by Fairbanks, and mortgage-backed securities. (As of 2007 the author of this article has not been able to ascertain that such purchase was made.)
By 2003, PMI knew they had a problem. They put their own people in place* in an attempt to stem the tide of negative publicity surrounding the very public legal battles facing Fairbanks Capital. In further efforts to put a new public face on the company, PMI's Brad Schuster became Chairman and FSA's James Ozanne became CEO of the failing company. Despite all their best efforts to spin the PR machine their way, thousands of homeowners knew and continue to know that nothing really changed. Ultimately, PMI sold out to Credit Suisse First Boston in 2005.
From the June 30, 2003 PMI 10Q
In October 2002, the FTC informed Fairbanks that it was the subject of an FTC investigation to determine whether Fairbanks Capital?s loan servicing or other practices violate or have violated the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, Section 5 of the Federal Trade Commission Act, or other laws enforced by the FTC. In the course of its continuing investigation, the FTC staff requested information from us. We have cooperated with the FTC staff in its investigation and have provided the requested information. In addition, we have had continuing discussions with the FTC in regard to its investigation and in the course of those discussions the FTC staff informed us that it intends to recommend naming us in any action the FTC might bring against Fairbanks. There can be no assurance that the outcome of these discussions will not result in us being named by the FTC in an action arising from the practices of Fairbanks. In the event that such an action is brought by the FTC against us, there can be no assurance as to the outcome of the action. In addition, the filing of an FTC action against us could lead to regulatory actions by other regulatory agencies or private litigation against us, could impact our ability to obtain regulatory approvals necessary to carry out our present or future plans and operations, and could result in negative publicity that might adversely affect our business. Any action brought against us by the FTC with respect to its investigation of the practices of Fairbanks could have a material adverse affect on our consolidated financial position and results of operations.Media RE: PMI and Fairbanks Capital
PMI 2000 Press Release RE: acquisition of Fairbanks Capital Corp.
List of 2003 PMI Group Press Releases -Link reported to getdshirtz in December 2007 as "dead", getdshirtz.com has printouts of the press releases.
2003 Loan Servicer Gets A Downgrade: Fairbanks Capital Is Being Investigated After Many Complaints
Some useful information about private mortgage insurance can be found here http://www.frbsf.org/publications/consumer/pmi.html
Thursday, December 06, 2007 (cleaned up sentence structure, removed and/or replaced dead links and restructure of physical appearance)
* GetDshirtz would like to clarify this statement to the extent that James Ozanne was not a PMI employee. GetDshirtz would have linked to the press release and news story which the information came from however, the listing of 2003 PMI press releases has been removed from the internet source where they were previously available and PMI is not making them available on their website. That notwithstanding, Mike has printouts of the press releases which have been turned over to his attorney in the course of the current lawsuit, otherwise GetDshirtz would be able to continue to make them available on this website.