Filed Under:Carrier Innovations, Regulation/Legislation

MGIC Recovery Threatened by Freddie Mac Demands

(Reuters) - MGIC Investment Corp, one of the largest U.S. mortgage insurers, is caught between a weak housing market and a very big customer, raising questions about the future of the money-losing company that writes 20 percent of private mortgage guarantees.

For four years, MGIC stumbled through the housing crash, posting a string of losses, breaching capital ratios and being overtaken in almost every aspect of the business by rival Radian Group Inc.

The risk is that MGIC could fall into the same hole as other mortgage insurers caught by the housing crisis. Old Republic International Corp and Triad Guaranty Inc have stopped writing new business and are running off their old insurance, while PMI Group Inc went bankrupt last year.

 

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