MGIC Says Minnesota Watchdog Proposes Penalty in Reinsurer Probe

MGIC Investment Corp. (MTG), the mortgage insurer whose stock has almost tripled this year, said Minnesota regulators have proposed resolving a reinsurance probe with penalties against the company.

A draft consent order, which was received Aug. 28 and also sent to competitors, contains “proposed conditions to resolve its investigation, including unspecified penalties,” Milwaukee-based MGIC said today in a quarterly filing with securities regulators. “We are engaged in discussions” with the Minnesota Department of Commerce.

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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