PMI Second Quarter 2009 Risk Index Reflects Brunt of Recession on Nation's Housing...

PMI Second Quarter 2009 Risk Index Reflects Brunt of Recession on Nation's
Housing Markets
60% of Top 50 MSAs have greater than 50% probability of lower home prices in
Q1 2011; Buyers: 98% of nation's 381 MSAs show higher affordability

WALNUT CREEK, Calif., July 7 /PRNewswire-FirstCall/ -- PMI Mortgage Insurance
Co., (NYSE: PMI), today released its Second Quarter 2009 Economic and Real
Estate Trends Report, and its widely cited U.S. Market Risk Index(SM). The
quarterly report projects the likelihood that the nation's housing prices will
be lower in two years. As many as 324 - approximately 85% - of the nation's
381 MSAs (Metropolitan Statistical Areas) are now facing increased risk of
lower home prices in 2011. Florida, California, Nevada and Arizona continue
to have the highest risk scores - 36 of the most risky MSAs are located in
these four states - but an increased risk of lower future prices is now
spreading across all regions of the nation, due to the significant increases
in unemployment and foreclosure rates.

Among the nation's fifty most populous MSAs, 28 of the Top 50 are now in the
highest risk category, signifying the greatest probability of lower house
prices by the first quarter of 2011, relative to the first quarter of 2009.
Although the Risk Index does not measure the magnitude of declines, the
forecast remains consistent with the outlook for moderating price declines in
some of the largest MSAs for the remainder of 2009 and into 2010.

"Rapidly rising foreclosure and unemployment rates, continuing declines in
house prices, and weakening consumer demand all worked to increase risk in the
general economy, and the housing market specifically," said David Berson,
PMI's Chief Economist and Strategist. "As a result of the continued weakness
in prices, and the relatively low level of interest rates, improvements in
affordability across the nation's MSAs will continue to incentivize repeat and
first-time homebuyers back into the market."

For all 381 MSAs, the average Affordability Index reading was 133.3 in the
first quarter of 2009, compared with a reading of 120.6 for the fourth quarter
of 2008. Across the nation, approximately 98% of the 381 MSAs showed higher
affordability. PMI's proprietary Affordability Index measures today's housing
affordability in a given MSA relative to a 1995 baseline. An Affordability
Index score exceeding 100 indicates that homes have become more affordable; a
score below 100 means they are relatively less affordable.

PMI's U.S. Market Risk Index(SM) ranks the nation's 50 largest metropolitan
statistical areas (MSAs) and uses economic, housing, and mortgage market
factors (home price appreciation, employment, affordability, excess housing
supply, interest rates, and foreclosure activity). Risk scores translate
directly into a probability (ranging from zero to 100) that the price of homes
in a given MSA will on average be lower at the end of the next two years.

A complete copy of the PMI Second Quarter 2009 Economic and Real Estate
Trends(SM)(ERET) report and Appendix that provides data for all 381 U.S. MSAs
is available at: http://www.pmi-us.com/econ.

Second Quarter 2009 PMI U.S. Market Risk Index (First Quarter 2009 data)
10 Riskiest and 10 Most Stable MSAs out of 50 Largest MSAs

10 Riskiest of the 50 Largest MSAs

Risk Risk Affordability
Rank MSA Index Index

High Riverside-San Bernardino-Ontario, CA 99.9 114.95
High Miami-Miami Beach-Kendall, FL 99.9 115.90
High Los Angeles-Long Beach-Glendale, CA 99.9 113.65
High Fort Lauderdale-Pompano Beach-
Deerfield Beach, FL 99.9 122.03
High Las Vegas-Paradise, NV 99.9 160.34
High West Palm Beach-Boca Raton-
Boynton Beach, FL 99.9 134.18
High Orlando-Kissimmee, FL 99.9 127.06
High Tampa-St. Petersburg-Clearwater, FL 99.9 126.57
High Santa Ana-Anaheim-Irvine, CA 99.9 114.12
High Phoenix-Mesa-Scottsdale, AZ 99.9 134.59

10 Most Stable of the 50 Largest MSAs

Risk Risk Affordability
Rank MSA Index Index

Minimal Cleveland-Elyria-Mentor, OH 1.5 204.18
Minimal Pittsburgh, PA 1.5 155.54
Minimal Columbus, OH 2.1 178.41
Minimal San Antonio, TX 2.8 135.92
Minimal Houston-Sugar Land-Baytown, TX 3.7 146.83
Minimal Dallas-Plano-Irving, TX 3.8 141.54
Minimal Fort Worth-Arlington, TX 5.8 142.93
Low St. Louis, MO 12.9 146.90
Low Charlotte-Gastonia-Concord, NC-SC 15.0 143.11
Low Nashville-Davidson-Murfreesboro-
Franklin, TN 16.6 135.47

About PMI's Economic & Real Estate Trends(SM) (ERET) and U.S. Market Risk
Index(SM)
The PMI Economic and Real Estate Trends (ERET) containing the U.S. Market Risk
Index is published quarterly by PMI Mortgage Insurance Co., (NYSE: PMI). The
Risk Index is a proprietary statistical model that measures geographic house
price risk by predicting the probability that home prices in the nation's 381
largest metropolitan statistical areas (MSAs) will be lower in two years. The
PMI U.S. Market Risk Index is based on data including the Repeat Transaction
Home Price Index from Loan Performance, labor market statistics from the
Bureau of Labor Statistics, and the PMI Affordability Index, which uses local
per capita household income, home price appreciation, and a blended mortgage
rate to calculate the local share of mortgage payment to income relative to
its baseline year of 1995. The PMI U.S. Market Risk Index scale ranges from
one to 100 and translates to a percentage. For example, a score of 50
indicates a 50 percent chance that home prices will be lower in two years.

About PMI Mortgage Insurance Co.
PMI Mortgage Insurance Co. (NYSE: PMI), is headquartered in Walnut Creek, CA
and provides credit enhancement solutions that expand homeownership while
supporting our customers and the communities they serve. PMI offers
residential mortgage insurance and credit enhancement products. For more
information: www.pmi-us.com.

Cautionary Statement: Statements in this press release that are not historical
facts or that relate to future plans, events or performance are
'forward-looking' statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, but
are not limited to, PMI's U.S. Market Risk Index, Affordability Index, and any
related discussion, and statements relating to future economic and housing
market conditions. Forward-looking statements are subject to a number of risks
and uncertainties including, but not limited to, the following factors:
changes in economic conditions, economic recession or slowdowns, adverse
changes in consumer confidence, declining housing values, higher unemployment,
adverse foreclosure trends, deteriorating borrower credit, changes in interest
rates, or a combination of these factors. Readers are cautioned that any
statements with respect to future economic and housing market conditions are
based upon current economic conditions and, therefore, are inherently
uncertain and highly subject to the changes in the factors enumerated above.
Other risk and uncertainties are discussed in the Company's filings with the
Securities and Exchange Commission, including in Item 1A of our Quarterly
Report on Form 10Q for the quarter ended March 31, 2009, filed May 11, 2009,
and of our Annual Report on Form 10-K for the year ended December 31, 2008. We
undertake no obligation to update forward-looking statements.

SOURCE PMI Mortgage Insurance Co.

Media, Tom Taggart of The PMI Group, Inc., +1-925-658-6511, or Investors, Bill
Horning of The PMI Group, Inc., +1-925-658-6193