(Reuters) - Mortgage insurer MGIC Investment Corp said it would pay Freddie Mac $267.5 million to settle a dispute that had threatened to stop it from writing new insurance throughout the United States.
The company also reported a loss for the ninth straight quarter, sending its shares down as much as 9 percent on Friday.
The settlement was a condition set by Freddie Mac, the government-backed mortgage financier, to allow a new unit of MGIC to underwrite mortgages in seven states.
MGIC had sold Freddie Mac a pool of policies, the valuation of which became a bone of contention. The insurer filed a lawsuit in May seeking to pay less than what Freddie Mac believed the policies were worth.
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