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MGIC Adds $100 Million to Unit to Maintain Freddie Mac Approval

MGIC Investment Corp. (MTG), the mortgage insurer that breached regulators’ capital limits, said it will transfer $100 million to a subsidiary to maintain approval from Freddie Mac to sell coverage.

The insurer will also record a $267.5 million charge in the current quarter after agreeing to pay Freddie Mac to resolve a dispute over coverage on groups of loans, Milwaukee-based MGIC said today in a statement distributed by PR Newswire.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

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