By Nick Timiraos and Alan Zibel
Of THE WALL STREET JOURNAL


A top Republican lawmaker is set to unveil on Thursday a proposal to rebuild
the U.S. mortgage market with a reduced government role, offering the most
detailed look yet at Republican plans to scrap Fannie Mae and Freddie Mac.

(This story and related background material will be available on The Wall
Street Journal website, WSJ.com.)

The legislation, sponsored by New Jersey Rep. Scott Garrett, advances a
series of technical changes to rebuild the plumbing of the market for buying
and selling mortgage loans, or what's known as the "secondary" mortgage market.
It builds on an earlier Republican bill that calls for eliminating Fannie and
Freddie, but the latest proposal doesn't lay down a specific timeframe.

"You don't want it to be too short to cause a shock to the market, but you
certainly don't want it too long so that it acts as a disincentive for the
private market to get back in," said Rep. Garrett in an interview.

The bill would significantly broaden the mandate of the firms' federal
regulator, the Federal Housing Finance Agency, tasking it with setting
standards for the issuance of all mortgage-backed securities and not just those
by Fannie and Freddie. The goal is to replicate the deep, liquid market for
mortgages constructed by Fannie and Freddie, but to do so without requiring the
government to issue any guarantees.

The proposal also attempts to address shortcomings that have hindered the
return of a market for mortgage-backed securities that don't have government
backing. The measure would repeal a section of the Dodd-Frank
financial-overhaul law designed to force issuers of mortgage bonds to have
"skin in the game" by retaining a piece of the credit risk for mortgages that
are bundled together and sold off as securities. The provision is unpopular
with some investors and many bond issuers.

Other provisions seek to eliminate legal conflicts that have emerged in the
aftermath of the mortgage market's meltdown. Banks wouldn't be allowed to
"service," or handle day-to-day management of first mortgages, if they owned
second mortgages, eliminating conflicts of interest that have frustrated many
investors.

"It is a good step," said Jim Vogel, an analyst at FTN Financial. "But the
idea that solving the nation's housing-finance problem is as simple as
re-creating the private-label market ... is far from a given."

The proposal is the latest in what figures to be a protracted and high-stakes
campaign over what to do with the mortgage giants whose government takeover has
cost taxpayers $141 billion.

Even as House Republicans work to wind down the housing giants, the poor
health of the housing market may be working against them. Senate lawmakers last
week passed a measure to increase the size of loans Fannie and Freddie can buy
for two years, seeking to reverse a reduction in the loan caps that went into
effect on Oct. 1.

Meanwhile, the mortgage insurance industry, which remains one of the few
private sources of capital in the mortgage market, remains under severe stress.
The main subsidiary of PMI Group Inc., the third largest mortgage insurer, was
placed into receivership by the Arizona state insurance commissioner last week.

Industry leaders voiced support for many of Rep. Garrett's proposals but were
skeptical about how far they would go towards filling the void left by Fannie
and Freddie, which own or guarantee around half of all $10.4 trillion in U.S.
home loans.

"You just can't get investors who are willing to purchase mortgage backed
securities without a government guarantee on a large scale," said John Dalton,
chairman of the Housing Policy Council, a trade group that includes many of the
nation's largest banks.

The debate on what to do with Fannie and Freddie has limped along since
February, when the White House called for winding them down and offered three
options that would take their place: One would leave the private sector to fill
their void, and two would create some new type of government backstop. Two
Republican lawmakers earlier this year introduced separate bills that would
enshrine a significant government role in the U.S. mortgage market. One would
replace Fannie and Freddie with smaller, privately-held firms that would issue
mortgage bonds with a government guarantee, while another would create a
government-run utility that performed a similar function.


(END) Dow Jones Newswires

10-26-11 1425ET

Copyright (c) 2011 Dow Jones & Company, Inc.

14:25 102611

So whats the deal here is thing going to trade again?



Cheers Traders \_/

They put the brakes on just before a huge technical breakout IMO the company had nothing to do with the trading action it was all based on traders in the know IMO



Cheers Buds \_/

Refinancing plan won't help housing market

Thank you sir. I'm trying to DD and pull everything I can off the wire while trading 35 other Big Board plays! Lol...

Looks like the fed knows that if this company fails so does the fed as well as a few other countries economies, now IMO that might just make PMI one of those companies that are to big to fail????

I seen something tonight on King5 news about government home refinance and then a short thing about the PMI takeover but it was just in passing that it was mentioned but then again it was mentioned! Lol… there up to something IMO



Cheers Buds \_/

P.S. sorry about the rant, head really hurts tonight!

Well, we realy dont have a choice right now! Lol... but it is getting good IMO



Cheers Buds \_/

I agree, seems the only winning move is to not play!



Cheers Buds \_/

Yah I think I will just hold these shares for a while and see what happens! Lol... and to think I was going to short the daylights out of this if it ever traded again. Lol....

Good link by the way! Cheers Buds \_/

P.S. So it's either game over or game on IMO

A move by the United States government to seize the main subsidiary of American mortgage insurer PMI Group, along with the broader struggles in the US housing market, have put hundreds of millions worth of collateralised debt obligations (CDOs), distributed exclusively in Australia, on the brink of collapse, according to a report by the Australian Financial Review.

The issue came to a peak yesterday when it became increasingly likely that three CDOs in particular-- Torquay, Scarborough and a portion of the Parkes CDO, would collapse, an event that would cost Australian investors up to $250 million.

Councils, charities, churches and wealthy individuals are particularly exposed to CDOs, with the City of Melville, in Perth, among the most exposed, with nearly $5 million invested.

US mortgage insurer PMI was a popular company among CDO creators, ensuring that the company's seizure by the US government, and a subsequent credit event, would have a significant impact on a wide array of CDOs.

If PMI defaults, Scarborough would collapse, while Torquay and a portion of the Parkes CDO would lose some 98 per cent of their capital, according to the AFR.

I dont know? got in at 1.95 and out today at 2.52 cant pass up profits when the market is like this. Now from the looks of the action today something great is comming but I couldnt take the chance myself.



Good luck Buds and Cheers! \_/

I know it does, try not to get all attached to the trade, this will be O.K. IMO give or take a hundred years!

now hope they keep puting out this brand of news before they open it up to trading so we dont see a huge gap down!



Cheers Buds \_/

P.S. I will keep posting this stuff as it comes off the wire, as long as I have posts that is.

Of Receiver



The following is a press release from Standard & Poor's:

NEW YORK (Standard & Poor's) Oct. 24, 2011-Standard & Poor's Ratings Services
said today that the Superior Court of the State of Arizona's appointment of
the Arizona Department of Insurance as receiver to PMI Mortgage Insurance Co.
(PMI) on Oct. 21, 2011, will not immediately affect the ratings on The PMI
Group Inc. (TPG; CC/Watch Neg/--). However, the continuance of this
receivership status for 60 days would constitute an event of default on the
4.50% convertible senior notes issued by TPG. Alternatively, PMI expects the
New York Stock Exchange to suspend trading of its common stock, which would
enable the holders of the 4.50% notes to force a repurchase of the principal
as early as 20 days after the event. Either scenario would cause the $285
million in principal to become immediately due and payable. TPG would not have
the financial resources to meet such obligations. In addition, if this
accelerated principal is not discharged or its acceleration is not rescinded
or annulled within 30 days, the outstanding 6.000% and 6.625% senior notes
would become immediately due and payable as well. The principal amounts for
these notes are $250 million and $150 million, respectively. Therefore, we now
expect a bankruptcy petition within the next 60 days. At that time, we will
move our ratings on TPG and its related issues to 'D'.

Primary Credit Analyst: Miles Kaschalk, New York (1) 212-438-9375;
miles_kaschalk@standardandpoors.com
Secondary Contact: Ron Joas, New York (1) 212-438-3131;
ron_joas@standardandpoors.com


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(END) Dow Jones Newswires

10-24-11 1501ET

15:01 102411

It was just posted today on IHUB from there feed. I dont no?



Cheers Buds \_/

P.S. It doesnt really matter in the grand sceam of things IMO I have played stocks that were delisted and came right back even stronger.

Yah this is better isnt it?

14.10% now! love it when a plan comes together!



Cheers Buds \_/

And Now DELISTED! Lol...

what a great trade PMI has turned out to be.



Cheers Traders \_/ may need two IMO \_/

(This story has been posted on The Wall Street Journal Online's Market Beat
blog at http://blogs.wsj.com/marketbeat.)


By Mark Gongloff

By Caitlin Nish and Corrie Driebusch

Stocks to watch this morning include PMI, Invesco and more.

The main subsidiary of mortgage insurer PMI Group Inc. has been seized by
insurance regulators in Arizona, and will begin paying just 50% of claims
beginning Monday, according to its website. The remainder of each claim will be
deferred, the company said. PMI's shares remained halted Monday morning, but
the news weighed on shares of rival mortgage insurers. Shares of MGIC
Investment Corp. fell 4.4% to $2.20 premarket, while Radian Group Inc.'s stock
dropped 2% to $2.40 premarket.

Invesco Ltd.'s third-quarter earnings rose 7.9% as the money manager reported
that higher investment management and performance fees boosted revenue, though
assets under management declined during a volatile period for markets.

Cubist Pharmaceuticals Inc. agreed to acquire biopharmaceutical company
Adolor Corp. for about $190 million in cash, adding two late-stage compounds to
its pipeline. Cubist will pay $4.25 a share in cash, and agreed to make an
additional contingent payment of up to $4.25 a share for certain milestones
related to Adolor's ADL5945, a potential treatment for chronic opioid induced
constipation. Shares of Adolor surged 137% to $4.55 premarket.

Eaton Corp.'s third-quarter earnings jumped 36% as the diversified industrial
manufacturer benefited from growth in end markets and strong performance in its
truck segment. Shares slipped 1.8% to $41.50 premarket.

Kimberly-Clark Corp.'s third-quarter earnings fell 7.9% on a restructuring
charge, as higher costs continued to hurt margins despite sales growth.

Roper Industries Inc.'s third-quarter income rose 31% as the technology firm
saw strong improvement in orders and growth at all four segments, helping the
company beat its earnings guidance.

VF Corp.'s third-quarter earnings rose 24% as the branded-apparel maker's
sales got a boost from its $2.3 billion acquisition of footwear company
Timberland Co. in September. Adjusted profit beat analysts' expectations.

-For continuously updated news from The Wall Street Journal, see WSJ.com at
http://wsj.com.


(END) Dow Jones Newswires

10-24-11 0904ET

Copyright (c) 2011 Dow Jones & Company, Inc.

09:04 102411

(From THE WALL STREET JOURNAL)
By Erik Holm, Leslie Scism and Nick Timiraos

A key piece of the nation's mortgage market is showing new cracks.

Arizona regulators have taken over a big mortgage insurer and put
restrictions on its claims payments, the latest indication that the housing
bust is not finished inflicting casualties -- and that lenders and investors
are likely to suffer more losses.

PMI Group Inc.'s mortgage-insurance unit had been paying about $1.5 billion a
year in claims to reimburse lenders and mortgage investors such as Fannie Mae,
Freddie Mac and Wells Fargo & Co. for some of their losses when homeowners
default.

Now, the insurer will pay just 50% of claims in cash, and the remainder will
be deferred, the company said in a posting on its website.

Wells Fargo, PMI, Fannie and Freddie declined to comment.

PMI was the third-biggest private-sector mortgage insurer as measured by
insurance in force at the end of June, according to Inside Mortgage Finance, a
trade publication. PMI joins Triad Guaranty Inc., a much smaller rival, in
facing regulatory restrictions on payments since the mortgage meltdown began.

The Arizona Department of Insurance, which regulates the insurer because it
initially was licensed in the state, now has "full and exclusive power of
management and control of PMI," according to an Oct. 20 order posted on PMI's
website.

The top four executives of the mortgage-insurance unit are on leave as a
result of the actions but will retain posts at the parent company, according to
people familiar with the matter. The takeover comes two months after Arizona
ordered the company to stop selling new policies.

Mortgage insurers have absorbed billions of dollars of losses on policies
issued in the years just before the housing bubble burst. Those still selling
policies had raised prices and tightened standards, allowing them to start to
mend.

But the continuation this year of a sluggish economy, high unemployment and
declining home prices has made those turnarounds more challenging, analysts
said.

Lenders often require the coverage when a buyer borrows more than 80% of a
house's value; if the homeowner goes into foreclosure, the insurer takes the
first hit on any losses.

The biggest seller of the insurance is MGIC Investment Corp. On Friday in an
earnings conference call, its chief executive, Curt Culver, said the company's
home-state regulator in Wisconsin has consulted with outside experts who
concluded the company would have enough money to pay its claims even in a
"stress scenario."

S.A. Ibrahim, chief executive of Radian Group Inc., another big seller of
mortgage insurance, said in an interview Sunday that the insurer has sufficient
capital, and profits from new policies are helping to pay off claims on older
ones.

The action by the Arizona regulator will have implications for holders of
PMI's debt and for companies that sold protection against a possible PMI
default. Covenants in PMI's agreements with debt holders could require faster
repayment on up to $735 million of its obligations, for example.

PMI said in August it "does not have access to sufficient funds or other
sources of liquidity sufficient to enable it to repay such obligations if they
were to become due and payable."

In the short run, the impact to home buyers should be minimal, as they can
buy policies elsewhere. But PMI's woes raise long-term questions about the
industry's business model as the Obama administration and lawmakers on Capitol
Hill try to reduce the mortgage market's dependence on the government.

The U.S. Treasury spurned the industry's pleas for help under the Troubled
Asset Relief Program in 2008. Instead, the Federal Housing Administration
filled the void left by weakened and risk-averse mortgage insurers. The FHA's
market share in mortgage insurance has soared over the past three years.

Last week's receivership action, with its restriction on claims, "comes as a
surprise to the industry," said David Stevens, chief executive of the Mortgage
Bankers Association. "America needs a stable and fiscally sound
mortgage-insurance industry, which is so critical to providing financing for
low-down-payment buyers."

PMI ended the second quarter about $320 million below the minimum required by
Arizona law to protect policy holders, PMI's filings with the Securities and
Exchange Commission state.

PMI's biggest users in recent years have been Fannie Mae and Freddie Mac, the
government-backed mortgage investors. The company also received $92.9 million
in premium revenue from Wells Fargo last year, accounting for more than 10% of
PMI's 2010 revenue, PMI filings show.

Through this year's first half, Fannie had nearly $93 billion in coverage on
some $393 billion in loans, and PMI accounted for about 13% of the coverage,
according to Fannie's regulatory filings.

Freddie had about $55 billion in coverage on about $260 billion in loans, of
which PMI represented about 12%, Freddie's filings show.

The restriction on PMI's claims payments is akin to an arrangement at Triad
since 2009. There, 60% of a claim is paid in cash and 40% is deferred through
an interest-bearing subordinated obligation, according to Triad's regulatory
filings.

The troubles at PMI are also likely to cause a payout on about $1.7 billion
in net outstanding credit-default swaps, said Rob Haines, an analyst at
CreditSights. Credit-default swaps can be used to protect debtholders from the
risk of default.

The enormity of the potential losses left Mr. Haines puzzled at how the
company announced the news. The court order was dated Oct. 20, but trading on
the shares wasn't halted until late in the day on Oct. 21, and the company
through Sunday hadn't distributed a news release.

A PMI representative declined to comment on the notification matter.

---

Alan Zibel contributed to this article.


(END) Dow Jones Newswires

10-23-11 1910ET

Copyright (c) 2011 Dow Jones & Company, Inc.

19:10 102311

By Erik Holm and Alan Zibel
Of DOW JONES NEWSWIRES


The main subsidiary of mortgage insurer PMI Group Inc. (PMI) has been seized
by insurance regulators in Arizona, and will begin paying just 50% of claims
beginning Monday, according to its website.

The remainder of each claim will be deferred, the company said.

According to an order posted on the company's website from an Arizona
Superior Court judge, the Arizona Department of Insurance now has "full and
exclusive power of management and control of PMI."

The order is dated Oct. 20.

The takeover comes two months after Arizona ordered the company to stop
selling new coverage. PMI's main subsidiary, PMI Mortgage Insurance Co., is
based in Arizona, though the headquarters of the parent company is in Walnut
Creek, Calif.

Mortgage insurers have suffered from billions of dollars in losses on
policies they sold in the years just before the housing bubble burst. PMI alone
has reported about $3 billion in losses since the fourth quarter of 2007.

The insurers have since raised prices and tightened their underwriting
standards, and the policies they've sold in more recent years have so far
proven to be highly profitable. But those new policies weren't enough to allow
PMI to dig out of the still-deepening hole created by the older policies.

Reduced sales of new homes, a loss of market share to the Federal Housing
Authority and stalled efforts by lenders to renegotiate terms on the older
mortgages have made it difficult for the entire mortgage insurance industry to
recover.

PMI ended the second quarter with a policyholders' position about $320
million below the minimum required by Arizona law. It has not yet reported
third quarter results.

PMI is among three mortgage insurers that have halted sales since the start
of the housing crisis. Smaller rival Triad Guaranty Inc. (TGIC) stopped selling
new policies in 2008 and was seized by regulators. Old Republic International
Corp. (ORI) stopped new mortgage-insurance sales in August when waivers granted
to its mortgage-insurance subsidiaries that allowed it to keep writing new
business expired.

The largest U.S. mortgage insurer, MGIC Investment Corp. (MTG) on Friday
warned it could face the same fate as the companies that have closed their
doors. Waivers from Fannie Mae (FNMA) and from several state regulators expire
at the end of the year. The waivers would allow the company to keep selling
coverage if its capital levels fall below minimum capital requirements.

The company currently meets those requirements, making the waivers
unnecessary for now, but the company is close to some critical thresholds.

MGIC's Chief Executive said Friday he didn't "see an issue with getting those
waivers." The company's home-state regulator in Wisconsin has consulted with
outside experts who concluded the company would have enough money to pay its
claims even in a "stress scenario," and that conversations were underway to
secure the necessary approvals, executive said.


(END) Dow Jones Newswires

10-22-11 1129ET

Copyright (c) 2011 Dow Jones & Company, Inc.

11:29 102211

IMO this looks like it could be a real short fest when trading resumes.

Cheers \_/

It's a real Lotto Ticket now!

I'm calm again, Cheers Buds \_/

They are similer but my question is, why are they trading in the $2-$3 range and PMI is at .37c????



Cheers Buds \_/

What is doing IMO is getting the price back inside the BB-Bands

Stocks dont tend to stay outside the bands for long without big crashes in price so IMO this is not that bad a deal.



Cheers Buds \_/

PMI is all over the road like a 72 Orange hatchback with bald tires and a brown door and I don’t know what’s going on! ROFL

Pivot point was .38 so we are on the Bullish side now but can it hold? or maybe run during Power hour? who knows?



Cheers Buds \_/

It's green!

What is up with this stock? at first I thought it was a Pump & Dump but this is a very low bottom Big Board stock, any ideas?



Thanks Buds

30 minutes to POWER HOUR and PMI is almost back in the GREENNNNN! Lol...

Looks like the bite is back on IMO

Is there news? Is there news coming? strange play here PMI



Cheers Traders \_/

Sounds like we are on the same page here with PMI

I predict that in the AM we will see amateur hour bring mixed results due to swing traders jumping ship and buyers coming in for the earnings but real day traders will be selling into this report IMO

So about a 3-5 day shake out and then let’s see if she wants to trend up!



Cheers Buds \_/

New to the board but it sounds like we are on the same page here.



Cheers Buds \_/

I just see that it's outside the BB-Bands and we all know that it cant stay out there for long!



Cheers Buds and Happy Trading to you! \_/

Brace for profit taking! Lol... I'm looking for an entry around the .26-.28 range.



Cheers Traders \_/

It's cool!

Hope your making some $$$ today!



Cheers \_/

All I was doing was trying to get you to through out what a nice setup this was! You didn’t have to take it personal and attach me. I know the float is all that matters.



Cheers Buds, got to go, bigger fish to fry, it's power hour!

And on a side note, at least someone is posting on KRMC today! Spirited debate IMO and if we can keep it up beat maybe new faces and on lookers will post here as well. Would be nice to breathe some life into this board again IMO



Cheers Buds \_/

If there were a billion shares on the market this thing wouldnt be at .0001 IMO it would move on air from .0001! Lol... I could take out the 1's right now with $11,800.00 thats nothing IMO

There are 50,000,000,000 authorized shares and 118,000,000 on the ask. That would be 4.237% of all shares. I could see where we got them from .018 to .0001

Your one MM with 90% is E*TRADE, that is retail, that is us not them! Making it even worse IMO



Cheers Buds \_/

7 mil volume, that is the best I have seen in a while around here.

Smells like something could be brewing IMO



Cheers \_/