Reliant Financial Service Corp. (RFNS)

[2-edged-sword]

It does not appear that PMI Canada insures sub-prime loans...especially loans with lower than 95% LTV ratios in the U.S. Their press release last week describes their portfolio:
Steve Smith, CEO of The PMI Group, Inc., said, "Our U.S. and Australian portfolios are focused primarily in core housing, meaning single family homes that are owner-occupied, and are geographically well diversified, respectively, across the U.S. and Australian states."

David Katkov, President of PMI Mortgage Insurance Co., PMI's U.S. subsidiary, explained, "The current market environment has resulted in some positive demand-related trends for PMI. Alternative loan products have lost much of their luster, the GSEs have increased their market share, and tax deductibility has sparked renewed interest in mortgage insurance. As a result, we're seeing an increased demand for our product, including insurance for loans with a loan-to-value above 95 percent. As a whole our portfolio continues to be focused on loans of modest size to individuals and families who are purchasing homes they plan to live in, and we remain committed to sustainable homeownership. In the long run we believe this increased demand will be a strong positive for PMI and the mortgage insurance industry."

General Characteristics of PMI's U.S. Mortgage Insurance Portfolio as of June 30, 2007:


Prime loans (credit scores of 620 and above) represent 91 percent of primary risk in force.
Fixed rate loans account for 84 percent of primary risk in force.
Approximately 88 percent of loans are for primary residences.
Average primary loan size is $148,700.
The portfolio is well diversified across all 50 states.


press release from last week describes their portfolio: