MILWAUKEE, Nov. 8, 2017 /PRNewswire/ -- MGIC Investment
Corporation (NYSE: MTG) today issued an Operational Summary of its
insurance subsidiaries for the month of October 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.
|
|
October
2017
|
October
2016
|
Change
|
Insurance in Force
(billions)
|
|
$192.2
|
$180.7
|
6.4%
|
Flow
Only
|
|
$184.0
|
$171.2
|
7.5%
|
|
|
|
|
|
Beginning Primary
Delinquent Inventory (# of loans)
|
|
41,235
|
51,433
|
(19.8%)
|
Plus: New Delinquency
Notices – Non-Hurricane Impacted Areas (1)
|
|
4,549
|
4,882
|
(6.8%)
|
Plus: New Delinquency
Notices - Hurricane Impacted Areas (1)
|
|
3,394
|
637
|
432.8%
|
Less:
Cures
|
|
4,680
|
5,335
|
(12.3%)
|
Less: Paids
(including those charged to a deductible or captive
reinsurer)
|
|
660
|
966
|
(31.7%)
|
Less: Rescissions and
Denials
|
|
22
|
39
|
(43.6%)
|
Ending Primary
Delinquent Inventory (# of loans)
|
|
43,816
|
50,612
|
(13.4%)
|
|
|
|
(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 8,987 and 7,289
loans in our Ending Primary Delinquent Inventory as of October 31,
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 October 31, 2017, MGIC had $192.2 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