MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance and ancillary services. As of December 31, 2014, the company’s principal mortgage insurance subsidiary, Mortgage Guaranty Insurance Corporation, was licensed in all 50 states of the United States, the District of Columbia, Puerto Rico and Guam. During 2014, the company wrote new insurance in each of those jurisdictions. Products and Services Mortgage Insurance Primary Insurance: Primary insurance provides mortgage default protection on individual loans and covers a percentage of the unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure or sale approved by the company (collectively, the ‘claim amount’). In addition to the loan principal, the claim amount is affected by the mortgage note rate and the time necessary to complete the foreclosure or sale process, which has been lengthened, in part, due to new loss mitigation protocols established by servicers and to changes in some state foreclosure laws that might include, such as a requirement for additional review and/or mediation processes. Primary insurance is generally written on first mortgage loans secured by owner occupied single-family homes, which are one-to-four family homes and condominiums. Primary insurance could be written on first liens secured by non-owner occupied single-family homes, which are referred to in the home mortgage lending industry as investor loans, and on vacation or second homes. Primary coverage could be used on any type of residential mortgage loan instrument approved by the mortgage insurer. Pool Insurance: Pool insurance is generally used as an additional ‘credit enhancement’ for certain secondary market mortgage transactions. Pool insurance generally covers the excess of the loss on a defaulted mortgage loan, which exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan, which did not require primary insurance. Other Products and Services Contract Underwriting: A non-insurance subsidiary of the company performs contract underwriting services for lenders. In performing those services, the company underwrites loans to conform to prescribed guidelines. The guidelines might be the lender's own guidelines or the guidelines of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, or a non-GSE investor. These services are provided for loans that require private mortgage insurance, as well as for loans that do not require private mortgage insurance. Other: The company provides various fee-based services for the mortgage finance industry, such as analysis of loan originations, loan portfolios and servicing portfolios; training; and mortgage lead generation. Customers The company’s customers include originators of residential mortgage loans such as savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. Sales and Marketing The company sells its insurance products through its own employees, located throughout all regions of the United States and in Puerto Rico. Business Strategy The company’s business strategy is focused on improving the amount of new insurance written while maintaining rational underwriting guidelines and pricing for appropriate returns given the credit risk undertaken; and helping to shape the future of housing policy. Regulation The company is indirectly, but significantly, impacted by regulations affecting purchasers of mortgage loans, such as Federal Home Loan Mortgage Corporation and Federal National Mortgage Association; and regulations affecting governmental insurers, such as the Federal Housing Administration and the Veteran’s Administration, and lenders. Competition For flow business, the company and other private mortgage insurers compete directly with federal and state governmental and quasi-governmental agencies, principally the Federal Housing Administration and the Veteran’s Administration. The company’s private mortgage insurance competitors include Arch Mortgage Insurance Company; Essent Guaranty, Inc.; Genworth Mortgage Insurance Corporation; National Mortgage Insurance Corporation; Radian Guaranty Inc.; and United Guaranty Residential Insurance Company. History MGIC Investment Corporation, a Wisconsin corporation, was founded in 1984.
mgic investment corp (MTG:New York)
250 East Kilbourn Avenue
Milwaukee, WI 53202
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To contact MGIC INVESTMENT CORP, please visit mtg.mgic.com. Company data is provided by Capital IQ. Please use this form to report any data issues.