NU Online News Service, Aug. 9, 2:04 p.m. EDT

Troubles experienced by some mortgage insurers could present opportunities for better-capitalized competitors, but those companies will have to demonstrate the ability to maintain regulatory compliance, Moody's says.

In its Weekly Credit Outlook, Moody's points to the worse-than-expected results reported by PMI Mortgage Insurance Company, which recently stated that its policyholders' position is now $320.3 million below the minimum required by Arizona law. The company says the Arizona department has not yet limited its ability to transact new insurance business, but that the department may issue an administrative order requiring the company to suspend writing new business in all states.

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