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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.