PMI Group Inc., the third-largest U.S. mortgage insurer, said its risk-to-capital ratio was out of compliance with standards in 16 states and that the company received waivers to continue selling coverage in a majority of those states.

The insurer is writing policies through the PMI Mortgage Assurance Co. subsidiary in two states where the PMI Mortgage Insurance Co. unit was unable to obtain waivers, the Walnut Creek, California-based firm said today in a regulatory filing.

Fannie Mae and Freddie Mac, the U.S.-owned mortgage firms, will permit the company to sell coverage through the PMAC subsidiary in “certain states” through Dec. 31, PMI said.