MILWAUKEE, April 9, 2018 /PRNewswire/ -- MGIC
Investment Corporation's (NYSE: MTG) principal subsidiary, Mortgage
Guaranty Insurance Corporation (MGIC), the nation's first private
mortgage insurance company, announced reduced borrower-paid premium
rates that reflect the lower corporate tax rate signed into law in
2017. By incorporating the tax benefit and allowing all lenders
access to these reduced premium rates, MGIC believes that borrowers
and lenders will be better served in their quest for affordable and
sustainable low-down-payment lending solutions.
Borrower-paid mortgage insurance premium rates on the most
popular premium plans have been reduced by an average of
approximately 11%.
Patrick Sinks, CEO of MTG and
MGIC said, "Over the last few months we've seen our competitors
offer reduced borrower-paid premium rates to many, but not all,
customers. Our decision to incorporate the new tax rate into our
borrower-paid premiums allows all lenders and their borrowers to
benefit from lower premiums."
Down payment remains the number one obstacle to homeownership
and borrower-paid monthly premiums, because they are cancelable,
are one of the most popular and affordable ways to overcome this
obstacle.
Sinks added, "While we are lowering premium rates, MGIC will
continue to have a strong capital position that protects
policyholders while achieving returns for shareholders that are
commensurate with the risk associated with low-down payment
lending."
The new rates are effective June 4,
2018. A presentation with illustrative examples of the price
changes can be found at
https://mtg.mgic.com/events-and-presentations. Full details of the
announcement and new premium rates will be posted by 6 p.m. ET today at
https://www.mgic.com/rates.
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 February 28, 2018, MGIC had $196.5 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.
Safe Harbor Statement
Forward Looking Statements and Risk Factors
Our actual results could be affected by the risk factors below.
These risk factors may also cause actual results to differ
materially from the results contemplated by forward looking
statements regarding our capital position and returns or other
statements that may be forward looking statements in the foregoing
press release. More detail about these risks may be found in Item
1A of our Annual Report on Form 10-K for the year ended
December 31, 2017.
- Competition or changes in our relationships with our
customers could reduce our revenues or increase our
losses.
- The amount of insurance we write could be adversely affected
if lenders and investors select alternatives to private mortgage
insurance.
- Changes in the business practices of the GSEs, federal
legislation that changes their charters or a restructuring of the
GSEs could reduce our revenues or increase our losses.
- We may not continue to meet the GSEs' private mortgage
insurer eligibility requirements and our returns may decrease as we
are required to maintain more capital in order to maintain our
eligibility.
- We are involved in legal proceedings and are subject to the
risk of additional legal proceedings in the future.
- Resolution of our dispute with the Internal Revenue Service
could adversely affect us.
- If our risk management programs are not effective in
identifying, or adequate in controlling or mitigating, the risks we
face, or if the models used in our businesses are inaccurate, it
could have a material adverse impact on our business, results of
operations and financial condition.
- Downturns in the domestic economy or declines in the value
of borrowers' homes from their value at the time their loans closed
may result in more homeowners defaulting and our losses increasing,
with a corresponding decrease in our returns.
- The mix of business we write affects our Minimum Required
Assets under the PMIERs, our premium yields and the likelihood of
losses occurring.
- The premiums we charge may not be adequate to compensate us
for our liabilities for losses and as a result any inadequacy could
materially affect our capital and returns.
View original
content:http://www.prnewswire.com/news-releases/mgic-announces-reduced-borrower-paid-premium-rates-300625697.html
SOURCE MGIC Investment Corporation