Mortgage insurer PMI announces 155 job cuts

Mortgage insurer PMI has announced that it is laying off 155 jobs at its corporate headquarters in Walnut Creek, Calif.

The San Jose Mercury News reports that the layoffs follow a rough 2011 fourth quarter for PMI, which filed for bankruptcy in November after its mortgage insurance origination units were seized in October by Arizona state regulators. PMI's bankruptcy filing listed $736 million in debts.

"PMI intends to offer severance benefits and transition programs, including outplacement services, to affected employees," said Charles Broom, senior vice president with PMI Mortgage, in an internal memo obtained by the Mercury News.

The PMI layoffs are the latest bad news for the financial services sector in California's East Bay region, which has already registered 2,200 lost jobs in the past 12 months and 15,600 jobs in the five years ending November 2011.

Source: Mortgage Orb