Document:

Summary of Compensation Arrangements

 Exhibit 10.35 
  
 Summary of Compensation Arrangements 
 Applicable to Named Executive Officers and 
 Non-Employee Directors of The PMI Group, Inc.

  
 This summary provides information about compensatory arrangements not
otherwise provided in other exhibits. 
  
 1. Summary of Compensation
Arrangements Applicable to Named Executive Officers 
  
 The Compensation
Committee (the “Committee”) of the Board of Directors of The PMI Group, Inc. (“PMI”) oversees and reviews PMI’s executive compensation policies and programs and approves the form and amount of compensation to be paid to
PMI’s executive officers. 
  
 Each of the executive officers of PMI has an
at-will employment relationship with PMI and does not have an employment agreement, other than a change-of-control employment agreement, the form of which has been filed with the SEC. 
  
 Annual Compensation - Base salaries and incentive compensation 
  
 On February 16, 2005, the Committee approved the following annual 2005 base salaries and 2004 bonus incentive awards for PMI’s Named
Executive Officers (which officers were determined by reference to PMI’s Proxy Statement, dated April 23, 2004): 
  

							
	 Named Executive Officer

	  	Base Salary

	  	 2004 Bonus
 Incentive Award

	 W. Roger Haughton
Chairman & Chief Executive Officer
	  	$	800,000	  	$	1,400,000
			
	 L. Stephen Smith
President & Chief Operating Office
	  	$	525,000	  	$	767,700
			
	 Bradley M. Shuster
President, International & Strategic Investments
	  	$	400,000	  	$	450,384
			
	 Victor J. Bacigalupi
Executive Vice President,
Chief Administrative Officer, General Counsel & Secretary
	  	$	360,000	  	$	409,440
			
	 Donald P. Lofe, Jr.
Executive Vice President & Chief Financial Officer
	  	$	360,000	  	$	400,000

  
 The 2004 bonus incentive awards listed
above were granted by the Committee pursuant to The PMI Group, Inc. Bonus Incentive Plan, which was approved by the shareholders in 2004, and were based upon pre-determined goals established by the Committee. The Bonus Incentive Plan (the
“Plan”) requires the Committee to annually establish (i) a maximum award for each Named Executive Officer, representing the maximum bonus amount that could be paid to that executive for that performance year, and (ii) the maximum size of
the performance pool under the Plan. In no event may a participant in the Plan be allocated more than 30% of the performance pool. 
  
 On February 16, 2005, the Committee established a maximum 2005 bonus incentive award for each Named Executive Officer, set the maximum size of the 2005 performance pool
at 5% of PMI’s consolidated 2005 net income, and established two corporate factors that the Committee will consider, among other quantitative and qualitative factors, when it establishes 2005 bonus incentive awards, if any, to be paid to the
Named Executive Officers. The two corporate factors are consolidated net income and net income from the operations managed by PMI Capital Corporation, a wholly-owned subsidiary of PMI, in each instance with net income defined to exclude realized
gains and losses, certain non-recurring items and changes in accounting principles. In addition to these factors, the Committee also established that no 2005 bonus incentive payments would be awarded unless PMI earns a threshold consolidated return
on average equity that is at least four percentage points above the 10-year U.S. Treasury bond yield for 2005. 
  
 The Committee retains the discretion to reduce or grant no bonuses regardless of the results related to the two corporate factors. The Committee has no discretion to grant bonuses under the Plan if PMI has no net
income in the relevant fiscal year. 

 Long Term Incentive Awards - Stock option awards 
  
 Also on February 16, 2005, the Committee granted the Named Executive Officers the following options to purchase shares of PMI common stock
under the Amended and Restated Equity Incentive Plan: 
  

			
	 Named Executive Officer

	  	2005 Stock Option Award

	 W. Roger Haughton
	  	160,000 shares
	 L. Stephen Smith
	  	98,700 shares
	 Bradley M. Shuster
	  	61,100 shares
	 Victor J. Bacigalupi
	  	50,075 shares
	 Donald P. Lofe, Jr.
	  	50,075 shares

  
 The stock options granted have an
exercise price per share of $38.17, which was the average of the high and low prices of PMI’s common stock on the New York Stock Exchange on the date of grant. Each Named Executive Officer’s stock options will vest in three equal
installments on the first, second and third anniversaries of the grant. 
  
 Other Benefits 
  
 The Named Executive Officers may participate
in certain compensatory plans sponsored by PMI for the benefit of all employees, including the Savings and Profit-Sharing Plan and the Employee Stock Purchase Plan. They also receive financial planning and tax return preparation assistance and an
automobile allowance that in aggregate do not exceed $50,000 for each executive. 
  
 2. Summary of Compensation Arrangements Applicable to Non-Employee Directors 
  
 Annual Retainer Fees 
  
 Directors who are
employees of The PMI Group, Inc. (“PMI”) or its subsidiaries do not receive additional compensation for their services as directors. Annual retainer fees for non-employee directors are set forth in the following table. 
  

				
	 	  	 2005 Non-Employee Director
 Annual Retainer Fees

	 Board Members
	  	$	50,000
	 Chair of Audit Committee
	  	$	15,000
	 Chairs of Compensation, Governance and Nominating, and Investment and Finance Committee
	  	$	7,500
	 Members of the Financial Guaranty Oversight Committee
	  	$	60,000

  
 Directors’ Deferred
Compensation Plan 
  
 Under PMI’s Directors’ Deferred Compensation
Plan, each non-employee director may defer receipt of his or her retainer fees. The minimum permitted deferral is $5,000. All amounts deferred are deemed to be invested in phantom shares of PMI’s common stock. On any date, the value of each
share of phantom stock equals the fair market value of a share of PMI’s 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 PMI’s common stock are paid in cash. 
  
 Quarterly Stock Units Grants 
  
 Non-employee directors also
receive quarterly, automatic, non-discretionary grants of stock units with an initial value of $21,250. The number of units granted depends on the fair market value of PMI’s common stock on the grant date, but each stock unit will have an
initial value equal to the fair market value of a share of common stock on the grant date. Non-employee director grants of stock units vest on the fifth anniversary of the applicable grant date. However, if a non-employee director terminates his or
her service on the Board due to retirement, death, disability, resignation or non-reelection to the Board, his or her grant will vest immediately. In addition, a non-employee director may elect to defer the pay out of his or stock units in
accordance with procedures established by the Compensation Committee. 
  
 Other
Compensation and Benefits 
  
 Directors are also reimbursed for reasonable
expenses incurred in attending Board and committee meetings. 
  

 -2-Summary of Terms

 Exhibit 10.36 
  
 SPS HOLDING CORP. 
  
 SUMMARY OF TERMS 
  

			
	Initial Sellers:	  	The PMI Group, Inc., FSA Portfolio Management, Inc. and all other Company shareholders.
		
	Company:	  	SPS Holding Corp., a Delaware corporation (“SPS”).
		
	Investor:	  	Credit Suisse First Boston (USA), Inc. or an affiliate.
		
	Seller of MSR:	  	Investor’s affiliates licensed to purchase and sell subprime residential mortgage loans related to the MSR (collectively, the “MSR Seller”).
		
	 MSR Delivery During
 Initial
Period:
	  	 MSR Seller shall deliver to Select Portfolio Servicing, Inc. (“Servicer”) commencing November 30, 2004 and continuing each month
thereafter until June 30, 2005 (the “Initial Period”) subprime mortgage servicing rights with related subprime mortgage loans in an aggregate unpaid principal balance of at least $3,100,000,000 (the “Initial MSR”) during such
Initial Period upon reasonable market terms based upon an agreed to pricing matrix (the “Pricing Matrix”). If MSR Seller delivers the Initial MSR on or before the expiration of the Initial Period but MSR Seller does not deliver the Initial
MSR at a rate that provides $1,250,000,000 in average unpaid principal balance during the Initial Period, then MSR Seller agrees to pay to the Servicer, on or before July 15, 2005, an amount equal to the difference between income (i) derived from
the actual average unpaid principal balance delivered during the Initial Period and (ii) that would have been derived based on the $1,250,000,000 average unpaid principal balance. The methodology for determining the related income shall be based on
a model that the Servicer shall deliver to Investor within ten business days after the execution of this Summary of Terms which model shall be reasonably acceptable to Investor.
  
 The parties hereto acknowledge and agree that the mortgage servicing rights and subservicing rights related to the mortgage loans with an
aggregate unpaid principal balance of $464,979,769.59 acquired by the MSR Seller from KeyBank National Association on or before the date hereof, will be sold or transferred, as the case may be, to the Servicer on or after the date hereof and that
such amount shall be applied to reduce the MSR Seller’s obligation to deliver the Initial MSR during the Initial Period to the Servicer hereunder.
  
 Nothing in this Summary of Terms or in the documentation to be executed in connection herewith shall be deemed to limit the Servicer’s ability to acquire mortgage
servicing rights from any third party not affiliated with the Investor. Any such mortgage servicing rights which are acquired for a price which is deemed acceptable by the Investor at the time of such acquisition are referred to herein as
“Third Party MSRs”.

		
	Option to Acquire Common Stock:	  	Investor shall have the option (the “Option”) exercisable on or before July 31, 2005 (the “Exercise Date”) to acquire from the Initial Sellers 100% of outstanding capital
stock of the Company.

			
	 Purchase Price Upon
 Exercise:
	  	 The purchase price upon the Exercise Date shall be the sum of the Cash Payment and the Contingent Payment, calculated as follows:
  
 Cash Payment: The Cash Payment equals (x) the consolidated book value of
the Company on the month end preceding the Exercise Date (as reported in the financial statements issued by the Company and audited by Ernst & Young as of December 31, 2004 and, if applicable, as reviewed on March 31, 2005 and June 30, 2005 by
Ernst & Young), minus (y) the consolidated book value, as of the month end preceding the Exercise Date, of all of the mortgage servicing rights owned by the Servicer other than the MSRs delivered by the MSR Seller after November 30, 2004 and
Third Party MSRs, plus (z) $10,000,000.
  
 Contingent Payment
Following the Exercise Date: Investor shall pay Initial Sellers possible monthly payments on the 15th day of each
month (provided that if the 15th day is not a business day, the payment shall be on the next succeeding business
day) commencing two months following the month of exercise of the Option, and based upon each prior month’s information, which payments shall be calculated as set forth below, and a final payment due on December 31, 2007, in amount equal to the
fair market value of the expected remaining cash flows on (x) all of the mortgage servicing rights owned by the Servicer less (y) the MSRs delivered by the MSR Seller after November 30, 2004 and the Third Party MSRs as of such date, as determined by
an independent third party acceptable to both Investor and Initial Sellers. The amount of each monthly contingent payment will be equal to the positive monthly net cash flows on all of the mortgage servicing rights owned by the Servicer and all of
the subprime mortgage loans subserviced by the Servicer, excluding the servicing rights delivered by the MSR Seller after November 30, 2004 and the Third Party MSRs, (such servicing rights and subservicing rights, excluding the servicing rights
delivered by the MSR Seller after November 30, 2004 and the Third Party MSRs, the “Designated Servicing”) on the month end preceding such payment. The positive net cash flow will be calculated as all servicing fees earned, subservicing
fees earned, ancillary income, and all income earned from professional services performed by Company or its affiliates, in each case to the extent derived from or related to Designated Servicing during the related month, less the sum of (i) a
mutually agreed upon unit cost plus (ii) certain litigation or non-recoverable costs arising directly from any mortgage related to the Designated Servicing (less any previously established related reserves).
  
 Within 30 days of signing this Summary of Terms, Company shall deliver to Investor a model
reasonably acceptable to the Investor for determining the unit cost and all charges related to the Designated Servicing which shall be used in calculating the amount of the related net positive cash flows on the Designated Servicing.
  
 To the extent MSR Seller delivers to Servicer MSRs in excess of the Initial MSR prior to its
obligation, if any, to deliver the Required Delivery Amount during the Additional Period, the purchase price of such additional MSRs shall be the unpaid principal balance of the related mortgage loans times the percentage set forth in the Pricing
Matrix plus the applicable Margin; notwithstanding the foregoing, the Servicer shall have the right to decline to accept MSRs in excess of the Initial MSR during the Initial Period.

			
	 Additional Delivery of
 MSR:
	  	 If Investor elects not to exercise the Option and Company so instructs the MSR Seller, MSR Seller shall deliver an additional tranche of subprime
MSRs in an aggregate unpaid principal balance of $3,000,000,000 (the “Required Delivery Amount”) over the six month period commencing July 1, 2005 and continuing until December 31, 2005 (the “Additional Period”); provided that,
if the MSR Seller’s current subprime production securitized on the HEAT shelf shall decline, the required delivery period may be extended. In the event that (i) the MSR Seller’s monthly production of subprime MSRs shall be less than
$1,000,000,000 during any month of the Additional Period, the MSR Seller shall only be required to deliver MSRs in an amount equal to 50% of such monthly production, and (ii) the MSR Seller’s production of subprime MSRs from July 1, 2005 to
December 31, 2005 shall be less than $6,000,000,000, the Additional Period shall be extended until such time as the MSR Seller has delivered an aggregate amount of $3,000,000,000. The purchase price for subprime MSRs during the Additional Period
shall be the unpaid principal balance of the related mortgage loans times the percentage set forth in the Pricing Matrix plus the applicable Margin (as described below).
  
 MSR Seller shall cause its Alt-A subservicing to be delivered to the Servicer in accordance with current practices during the Initial
Period. Consistent with current practices, the MSR Seller shall not be required to maintain any minimum Alt-A subservicing with the Servicer.

		
	Margin:	  	 The Margin to be applied to the preceding section shall initially be 18.0 basis points. From and after July 1, 2005 the applicable Margin shall,
as shown in the following chart, be reduced for each one level upgrade of Select Portfolio Servicing, Inc.’s subprime servicer rating by any of Moody’s, Standard & Poor’s or Fitch Ratings (provided, however, that no reductions
will be made for subprime servicer ratings from Fitch Ratings that are more than two levels above the higher of Moody’s or Standard & Poor’s ratings for the same period).
  
 The following chart illustrates the effect of the Servicer achievement of rating upgrades on the Margin:

		
	 	  	 

  

				
	 	  	Amount of
Margin Reduction

	 
	 S & P
	  	 	 
	 Positive Outlook
	  	0.0324	%
	 Above Average
	  	0.0324	%
	 	  	
	

	 Total Possible:
	  	0.0648	%
		
	 Moody’s
	  	 	 
	 SQ2
	  	0.0576	%
	 	  	
	

	 Total Possible:
	  	0.0576	%
		
	 Fitch
	  	 	 
	 RPS 3
	  	0.0144	%
	 RPS 3+
	  	0.0144	%
	 RPS 2-
	  	0.0144	%
	 RPS 2
	  	0.0144	%
	 	  	
	

	 Total Possible:
	  	0.0576	%
		
	 Total Possible Margin Reduction:
	  	0.180	%

			
	Rating Downgrade:	  	In the event that the subprime servicer ratings of the Servicer are downgraded to “below average” (or an equivalent rating) by any of the three major rating agencies, the MSR Seller
or an affiliate may elect to repurchase any MSRs sold to the Company by the MSR Seller during the Initial Period or the Additional Period. The purchase price for any such repurchase shall equal a percentage to be mutually agreed upon by the parties,
of the purchase price (expressed as a percentage) paid by the Company, multiplied by the remaining unpaid principal balance of the related mortgage loans at the time of such repurchase.
		
	 Covenant of the
 Company:
	  	As a condition precedent to the exercise of the Option, the Servicer shall (subject to obtaining any required consents from the Servicer’s senior secured creditors) pay in full: (i) the
Subordinated Promissory Note, dated as of September 30, 2004, issued to The PMI Group, Inc., and (ii) the Subordinated Promissory Note, dated as of September 30, 2004, issued to Dexia Holdings, Inc.
		
	Conditions Precedent:	  	 This Summary of Terms and consummation of the transactions contemplated hereby are subject to the following conditions precedent:
  
 •      Internal
approvals of Company, Servicer, Investor, MSR Seller, and Initial Sellers have been obtained;
  
 •      Completion of due diligence satisfactory to all the parties;
  
 •      Execution
of definitive agreements containing terms and conditions customary for transactions of this type, such agreements to be in form and substance acceptable to Initial Sellers, Investor, MSR Seller, Servicer and Company; and
  
 •      Any
necessary governmental or third party notifications, including without limitation, Hart-Scott Rodino filings, consents or approvals have been obtained.

		
	Confidentiality:	  	Subject to any disclosure required by law or regulation or required disclosure to governmental agencies, rating agencies, and except as otherwise contemplated by this Summary of Terms, the
MSR Seller, the Investor, Initial Sellers, the Servicer and the Company agree to use their commercially reasonable efforts to maintain the confidentiality of this Summary of Terms and any information and data provided by one party to the other in
connection with the transactions contemplated by this Summary of Terms. The parties hereto further agree they will not (i) use any portion of the information and data provided to such party by the other party for any purpose other than evaluation
and consummation of the transactions contemplated by this Summary of Terms or (ii) except as contemplated by this Summary of Terms, disclose any portion of the information and data provided to such party by the other party to any persons or entities
other than the officers, employees and consultants of such party who reasonably need to have access to the information and data provided to such party for purposes of the evaluation and consummation of the transactions contemplated by this Summary
of Terms or (iii) issue any press release relating to the transactions contemplated by this Summary of Terms, without the consent of the other parties hereto.

  
  

 The parties have signed this Summary of Terms as a reflection of their understanding of the principal terms of an
investment and sale of MSRs. This Summary of Terms represents the binding agreement of the parties to conclude the transactions described herein, subject to the satisfaction of the Conditions Precedent set forth above. 
  
 [The remainder of this page is left blank intentionally.] 

 
  

							
	SPS HOLDING CORP.	 	CREDIT SUISSE FIRST BOSTON LLC
				
	 	 	 /s/ Matt Hollingsworth

	 	 	 	 /s/ James P. Healy

	 Name:
	 	 Matt Hollingsworth
	 	 Name:
	 	 James P. Healy

	 Title:
	 	 C.E.O.
	 	 Title:
	 	 Managing Director

	 Date:
	 	 1/19/05
	 	 Date:
	 	 1/19/05

		
	SELECT PORTFOLIO SERVICING, INC.	 	 
				
	 	 	 /s/ Matt Hollingsworth

	 	 	 	 
	 Name:
	 	 Matt Hollingsworth
	 	 	 	 
	 Title:
	 	 C.E.O.
	 	 	 	 
	 Date:
	 	 1/19/05
	 	 	 	 
		
	THE PMI GROUP, INC	 	DLJ MORTGAGE CAPITAL, INC.
				
	 	 	 /s/ Bradley M. Shuster

	 	 	 	 /s/ Bruce S. Kaiserman

	 Name:
	 	 Bradley M. Shuster
	 	 Name:
	 	 Bruce S. Kaiserman

	 Title:
	 	 Pres., International and Strategic Investments
	 	 Title:
	 	 Vice President

	 Date:.
	 	 	 	 Date:
	 	 1/19/05

			
	THE PMI GROUP, INC	 	 	 	 
				
	 	 	 /s/ Donald P. Lofe, Jr.

	 	 	 	 
	 Name:
	 	 Donald P. Lofe, Jr.
	 	 	 	 
	 Title:
	 	 EVP & CFO
	 	 	 	 
	 Date:.
	 	 	 	 	 	 
			
	FSA PORTFOLIO MANAGEMENT, INC.	 	 	 	 
				
	 	 	 /s/ Roger K. Taylor

	 	 	 	 
	 Name:
	 	 Roger K. Taylor
	 	 	 	 
	 Title:
	 	 	 	 	 	 
	 Date:.

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