Summary of Compensation Arrangements



 Exhibit 10.7 
 The PMI Group, Inc. Board of Directors 
 Summary of Compensation Arrangements Applicable to
Non-Employee Directors 
 Effective May 21, 2009 
 Directors who are employees of The PMI Group, Inc. (“PMI”) or its subsidiaries do not receive additional compensation for their services as directors. 
 Annual Cash Retainers 
 Annual cash retainer fees for
non-employee directors are set forth in the following table. Annual retainer fees are paid in quarterly installments. 
  

				
	 Board Members
	  	$	60,000
	 Chair of the Audit Committee
	  	$	15,000
	 Each Chair of the Compensation, and Governance and Nominating Committees
	  	$	10,000
	 Presiding Director
	  	$	15,000
	 Members of the Audit Committee
	  	$	15,000
	 Members of the Compensation, and Governance and Nominating Committees
	  	$	10,000

 Board Meeting Fees 
 Non-Employee Directors receive a $1,500 cash meeting fee for each meeting of the Board of Directors attended after the first five meetings of each calendar year. 
 Equity–Based Compensation 
 Non-employee directors also
receive quarterly, non-discretionary stock unit grants pursuant to the PMI Amended and Restated Equity Incentive Plan (“Equity Plan”). The quarterly grants consist of that number of stock units which, when multiplied by the closing market
price per share of our common stock on the date of the award, equals $4,000, subject to a limit of 2,500 stock units per director per quarter. Pursuant to the terms of the Equity Plan, the grants are made the first business day on or after the
fifteenth of each of January, April, July and October. The stock units, which accrue dividends expressed in units when dividends are paid on PMI common stock, vest upon the earlier of cessation of Board service due to retirement, death, disability,


  

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resignation or non-reelection to the Board, or the fifth anniversary of the award date. Upon vesting, the units are paid in shares of common stock, on the
basis of one share for each stock unit. In addition, a non-employee director may elect to defer the payout of his or her stock units in accordance with the Equity Plan. 
 Pursuant to the Non-Employee Director Phantom Stock Plan, non-employee directors receive quarterly grants of phantom stock with a market value of $8,500 per grant plus the dollar value of any shortfall below $4,000 in
the initial value of quarterly stock units granted on that date. The phantom stock is subject to vesting at the earlier of five years from grant or upon cessation of Board service. The grant dates are the same as those for the directors’ stock
units. Shares of phantom stock are considered to have the same market value as shares of our common stock. The phantom stock, which accrues dividend equivalents when dividends are paid on PMI common stock, is settled in cash. 
 Other Arrangements 
 Under PMI’s 2005 Directors’
Deferred Compensation Plan (which also refers to its predecessor plan), each non-employee director may defer receipt of his or her cash retainer fees. The minimum permitted deferral is $5,000. All amounts deferred are deemed to be invested in
phantom shares of our common stock. On any date, the value of each share of phantom stock will equal the fair market value of a share of our common stock, including reinvestment of any dividends. At the time a director makes a deferral election, he
or she must also elect the time and method for payment of the deferred amounts. Phantom shares of our common stock are paid in cash. 
 All directors have
entered into indemnification agreements with the Company pursuant to which the Company is obligated to provide defense and indemnification, including advancement of expenses, in the event that certain claims are asserted against the covered
individuals. The Company also provides directors’ and officers’ liability insurance for its directors and officers. Directors are also reimbursed for reasonable expenses relating to their attendance at Board and committee meetings and
continuing director education. 
  

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