A consumer advocacy group is trying to derail the sale of Financial Guaranty Insurance Corp. (FGIC) to investors led by The PMI Group, Inc., citing PMI's ties to the troubled Fairbanks Capital Corp.

Matthew Lee, executive director of the Bronx-based Inner City Press/Community on the Move, filed a 14-page protest with the New York State Insurance Department (NYSID), which must review the proposed sale. Lee describes Fairbanks as a "predatory mortgage servicer" and says PMI, as a 57% owner of Fairbanks, should be held accountable for questionable behavior at Fairbanks.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.