Trading temporarily halted on MGIC as shares drop more than 12%
Legacy private mortgage insurance take hit on FHFA proposal
[UPDATE 1: Trading resumed, 4:01 p.m. ET]
[UPDATE 2: Statement from MGIC, 4:07 p.m. ET]
The suspension came even as the stock was taking a terrible beating, falling more than 12% on the day, holding at $8.22, down $1.01 or 12.32% from where it opened as of 2:48 p.m. ET.
After a brief halt, trading resumed before the close of the market and it rose 5%.
This came a day after the announcement of a draft of proposed changes to the Federal Housing Finance Agency's private mortgage insurance requirements. Analysts said just Friday morning that they believe MGIC will be hit hard by the proposed changes.
Trading of MGIC Investment Corp. crossed below their 200-day moving average of $8.45, changing hands as low as $8.02 per share before trading was suspended.
MTG’s low point in its 52-week range is $5.94 per share, with $9.50 as the 52-week high point — that compares with a last trade of $8.27.
The FHFA’s proposed revision of private mortgage insurance requirements will be a burden for legacy companies like MGIC, as well as Radian Group (RDN), and Genworth Financial (GNW), which were both down Friday.