Tuesday, January 3, 2012

Potential Bad News Ahead for MGIC

MGIC is the largest U.S. mortgage insurer, meaning they pay lenders when homeowners default on loans and when foreclosures do not gain the intended financial outcome. MGIC had put $200 million into a subsidiary in hopes of continuing their underwriting business proceeding their 90 percent drop at the end of 2006.
Since their capital expenditure, MGIC has dropped 6.2 percent and is anticipating a heavy decline in the future, therefore; MGIC is in discussion with Fannie Mae and the State of Wisconsin regarding their waiver expiration.

No comments:

Post a Comment