DSNews The homepage of the servicing industry
""MGIC Investment Corporation"":http://www.mgic.com/ is on its way to resolving stipulations set forth by Freddie Mac in order for the insurance company to continue issuing insurance.
[IMAGE]MGIC announced that Freddie Mac reduced the amount MGIC Investment Corporation must pay to its subsidiary from $200 million to $100 million. The GSE also extended the deadline for this contribution from the end of September to the end of December.
Additionally, Freddie Mac approved MGIC Indemnity Corporation (MIC), a subsidiary of MGIC, to write insurance in 16 jurisdictions besides Wisconsin ""that have specific regulatory capital requirements when MGIC is not able to write new business in a jurisdiction because MGIC would not meet those requirements,"" according to MGIC's announcement.
MIC is approved to write new business through the end of 2013 in areas where MGIC does not meet the necessary capital reserve requirements. This is an extension of its previous approval through the end of this year.
""I am pleased with the spirit of cooperation all parties have sown in moving forward to reach this point,"" said Curt Culver, CEO of MGIC Investment and MGIC.
Freddie Mac's approval of MIC may be revoked at any time and is contingent on Freddie Mac and MGIC reaching an agreement regarding their pool insurance dispute by the end of this month and confirmation from the state of Wisconsin that MIC's capital will support MGIC policies ""without segregation of those obligations.""
""While there can be no guaranty that the open matters that remain can be successfully resolved, I am hopeful we will continue to make progress,"" Culver stated.
With $166.7 billion in insurance on 1 million mortgages as of the second quarter of this year, MGIC is the nation's largest private mortgage insurer.
