U.S.'s third-largest mortgage insurer, PMI Group Inc., suffered a tenth unprofitable quarter, the most recent loss totaling $228.2 million. Even though foreclosure filings decreased in January this year, compared to December 2009, foreclosure filings were still up nearly 30 percent from January 2008. PMI Group, Inc. is also not the only powerhouse inquiring losses, is America nearing another big economic downturn?
Fourth quarter of 2008, the company posted losses totaling $174.1 million, according to their earnings statement. "The number of primary loans in default at December 31, 2009 was 150,925 compared to
141,261 loans in default at September 30, 2009 and 109,580 loans in default at December 31, 2008."
What initially lead to the U.S.'s economic downturn seems to hold true today, borrowers that were approved for loans ended up defaulting and were unable to pay their mortgages. Of course, other factors play into this situation, loss of jobs, bad investments and unexpected circumstances. The domino effect always starts somewhere.
According to "Aftershock," the book that criticizes the media for releasing any positive economic news "predicts that the two largest bubbles, which have not even hit us yet, are just around the corner." Is that true? Is PMI's recent consecutive loss another sign that our economy is still failing and hasn't even it hit rock bottom yet?
Written by Amy Munday
Huliq.com
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