PMI Will Limit Its Exposure To Multiple Loan Customers.

Walnut Creek, CA -- Mortgage insurer The PMI Group here has adopted changes to its underwriting policies, cutting its potential exposure on consumers who have multiple loans.

Without giving a specific reason for the change, PMI reduced the number of loans it would insure per customer to four, from five. It also reduced its risk exposure per consumer to $350,000 from $400,000.

Recently, the National Association of Realtors revealed that 36% of all homes sold last year were second homes, showing the increase in people buying real estate for investment purposes.

A spokeswoman for PMI, the nation's second largest MI in terms of insurance-in-force, said the change was not in response "to anything in particular," adding that "we are always looking at our risk, we're always cognizant of it."

She added that PMI, like other players in the industry, has noticed an increase in investor loans.

Asked whether the MI is concerned specifically about delinquencies on investor loans she said no, but added, "We don't want it to become an issue."

A few weeks ago, the National Association of Realtors released a new study showing that the second-home market - vacation and "investment" properties - accounted for 36% of all homes sold last year.