PMI Group to sell commercial mortgage securities for $1.23 million

By Jim Witters

Wilmington, Del., May 16 - PMI Group, Inc. has reached an agreement to sell its Impact Funding LLC commercial mortgage passthrough notes through certificate series 2001-A to Liberty Group Asset Management, Inc., according to documents filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Liberty is buying the notes on behalf of its client, Safeco Insurance Co. of America.

The price is 82% of the current face value of the securities. As of April 30, that value was nearly $1.5 million, setting the purchase price at about $1.23 million.

Safeco has executed a letter of intent while the parties prepare a formal sale agreement, according to court documents.

A hearing on the sale is scheduled for 1 p.m. ET on June 6.

The marketing process continues, but just one bidder has stepped forward, the motion states.

The debtor holds minority interests in the tranches A through D of the certificates issued by Impact Community Capital LLC, the motion states.

The interests are derived from a 2001 securitization comprising 107 affordable multifamily mortgage loans designed to support rental housing, according to court documents.

PMI, a Walnut Creek, Calif.-based provider of residential mortgage insurance and credit enhancement products, filed for bankruptcy on Nov. 23. Its Chapter 11 case number is 11-13730.

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