EXHIBIT 10.27

              The PMI Group Inc. Long-Term Incentive Plan
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The Long-Term Incentive Plan pays cash amounts tied to (a) specific financial
measures supporting continued growth, profitability and increased shareholder
value and/or (b) individual performance objectives. These measures and
objectives are identified by management and approved by the Compensation and
Nominating Committee of the Board ("Committee") on an annual basis. Under the
Long-Term Incentive Plan, an annual incentive cash award is designed to provide
market median levels of compensation for performance that met individual and/or
annual financial benchmarks set at the beginning of the year and approved by the
Committee.

Similarly, the Committee certifies annually that awards payable as annual
incentives correspond to performance goals and the target level established at
the beginning of the year. Provided the participant satisfies the threshold
level of individual or financial performance, the cash award payable can range
from 25% to 100% of the participant's base salary. Generally, the Long-Term
Incentive Plan cash payments to executives are based solely on Company
performance. The Company's independent auditors perform certain Long Term
Incentive Plan recomputation procedures and issue a report to the Company of
their result. The Committee retains discretion to alter the award otherwise
payable to any executive and/or to pay a bonus for the achievement of the other
objectives.