MGIC Says Minnesota Proposes Penalty in Reinsurance ProbeZachary Tracer
MGIC Investment Corp., 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 MN Department regarding the draft consent order. We do not believe a resolution of this Minnesota matter would be material to our financial statements or position.”
Katie Monfre, a spokeswoman for MGIC, declined to comment. A call to the Minnesota regulator wasn’t immediately returned.