MGIC Investment Corp. at yearend contributed $200 million of cash to its mortgage insurance subsidiary as two important capital waiver deadlines expired.
In a press statement, the parent company said the cash was given to the MI operating unit on Dec. 30.
The MI unit, Mortgage Guaranty Insurance Corp., had been operating under three different waivers — from the Wisconsin insurance commissioner, and from Fannie Mae and Freddie Mac.
The state and Fannie Mae waivers expired on Dec. 31. The Freddie waiver expires at the end of 2012.
Curt Culver, CEO of MGIC, said the additional capital contribution to the MI unit is an “important step” in enabling the company to further support its policyholders “and the U.S. housing market by continuing to write new insurance on a nationwide basis.”
However, the company said it expects MGIC's capital to diminish in 2012 and thereafter. “Thus, we remain in discussions with OCI, Fannie Mae and Freddie Mac regarding the terms under which this strategy [of capital waivers] may be continued.”
According to figures compiled by ASR sister publication National Mortgage News and the Quarterly Data Report, MGIC ranks first in MI coverage with $182 billion of policies-in-force and a market share of 24%.
