MILWAUKEE, Dec. 8, 2017 /PRNewswire/ -- MGIC Investment
Corporation (NYSE: MTG) today issued an Operational Summary of its
insurance subsidiaries for the month of November 2017 for their primary mortgage
insurance. The summary is also available on the company's
website under Newsroom, Press Releases.
The information concerning new delinquency notices and cures is
compiled from reports received from loan servicers. The level of
new notice and cure activity reported in a particular month can be
influenced by, among other things, the date on which a servicer
generates its report, the accuracy of the data provided by
servicers, the number of business days in a month, transfers of
servicing between loan servicers, and whether all servicers have
provided the reports in a given month.
|
|
November
2017
|
November
2016
|
Change
|
Insurance in Force
(billions)
|
|
$193.5
|
$181.3
|
6.7%
|
Flow
Only
|
|
$185.3
|
$171.9
|
7.8%
|
|
|
|
|
|
Beginning Primary
Delinquent Inventory (# of loans)
|
|
43,816
|
50,612
|
(13.4%)
|
Plus: New Delinquency
Notices – Non-Hurricane Impacted Areas (1)
|
|
4,350
|
4,953
|
(12.2%)
|
Plus: New Delinquency
Notices - Hurricane Impacted Areas (1)
|
|
4,525
|
633
|
614.8%
|
Less:
Cures
|
|
5,149
|
5,063
|
1.7%
|
Less: Paids
(including those charged to a deductible or captive
reinsurer)
|
|
617
|
944
|
(34.6%)
|
Less: Rescissions and
Denials
|
|
25
|
55
|
(54.5%)
|
Ending Primary
Delinquent Inventory (# of loans)
|
|
46,900
|
50,136
|
(6.5%)
|
(1) Hurricane
impacted areas are locations that the Federal Emergency Management
Agency has declared Individual Assistance Disaster Areas as a
result of hurricanes Harvey, Irma and Maria. There were
12,626 and 7,156 loans in our Ending Primary Delinquent Inventory
as of November 30, 2017 and 2016,
respectively, that were located in these areas. Based on our
analysis and past experience, we do not expect the increased level
of notices received in those areas to result in a material increase
in our incurred losses or paid claims. The Private Mortgage
Insurer Eligibility Requirements of Fannie Mae and Freddie Mac
require us to maintain significantly more "Minimum Required Assets"
for delinquent loans than for performing loans. We expect the
increase in delinquency notices to result in a temporary increase
in "Minimum Required Assets" and a decrease in the level of our
excess "Available Assets" under the PMIERs. Due to the suspension
of certain foreclosures by the GSEs, our receipt of claims
associated with foreclosed mortgages in the hurricane-affected
areas may be delayed. The following factors could cause our actual
results to differ from our expectations in the forward looking
statements in this press release:
- Third party reports that indicate the extent of flooding in the
hurricane-affected areas may be understated.
- Home values in hurricane-affected areas may decrease at the
time claims are filed from their current levels thereby adversely
affecting our ability to mitigate loss.
- Hurricane-affected areas may experience deteriorating economic
conditions resulting in more borrowers defaulting on their loans in
the future (or failing to cure existing defaults) than we currently
expect.
- If an insured contests our claim denial or curtailment, there
can be no assurance we will prevail. We describe how claims under
our policy are affected by damage to the borrower's home in our
Current Report on Form 8-K filed with the SEC on September 14, 2017.
About MGIC
MGIC (www.mgic.com), the principal subsidiary of MGIC Investment
Corporation, serves lenders throughout the United States, Puerto Rico, and other locations helping
families achieve homeownership sooner by making affordable
low-down-payment mortgages a reality. At November 30, 2017, MGIC had $193.5 billion of primary insurance in force
covering approximately one million mortgages.
From time to time MGIC Investment Corporation releases important
information via postings on its corporate website, including
corrections of previous disclosures, without making any other
disclosure and intends to continue to do so in the future.
Investors and other interested parties are encouraged to enroll to
receive automatic email alerts and Really Simple Syndication (RSS)
feeds regarding new postings. Enrollment information can be found
at http://mtg.mgic.com under Investor Information.
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SOURCE MGIC Investment Corporation