MGIC Writes $800m in Monthly Mortgage Insurance, Denies Hundreds of Claims
Mortgage Guaranty Insurance Corp. (MGIC), the principal subsidiary of MGIC Investment Corp. (MTG), wrote $800m of primary new mortgage insurance in May, according to monthly operations data. The company denied or rescinded -- or canceled the policy relating to -- almost 1,000 mortgage insurance claims in the month, helping to further reduce the number of delinquencies on its books, according to a press release. MGIC reported nearly 235,900 loans in its primary delinquent inventory at the beginning of the month, narrowed from 241,200 delinquent loans at the beginning of April. The company received new delinquent notices on just over 15,500 loans in May. Nearly 15,400 delinquencies cured during the month. MGIC reported another 3,500 delinquencies paid, including those mortgage insurance claims charged to a deductible. The company also denied or rescinded claims on less than 1,000 loans. At the close of May, MGIC had a delinquent inventory of 231,500. It marks yet another month of narrowing delinquency inventory. The company began April with 241,200 delinquent loans. MGIC noted 15,800 delinquencies cured, eclipsing 15,200 new notices of default during the month. The company paid on 3,600 delinquencies and denied claims on another 1,100 loans during April. In addition to working through its mortgage insurance claims, MGIC is engaging in capital-raising efforts to shore up liquidity for its mortgage insurance business. MGIC reported a $150.1m net loss in Q110 as defaulted loans continue to exert financial pressure on the mortgage insurance business. Following the quarterly results, the company priced a public offering and sale of 65.1m shares of common stock, which yielded gross proceeds of $700m, which will help fuel additional liquidity at MGIC's mortgage insurance business, the company said. Write to Diana Golobay. Disclosure: the author holds no relevant investments.