MGIC Provides Update Regarding Freddie Mac
MGIC Investment Corporation (NYSE: MTG) announced the following update on the status of the matters in the August 1, 2012 letter from Freddie Mac.
The amount of the capital contribution from MGIC Investment to Mortgage Guaranty Insurance Corporation ("MGIC"), MGIC Investment's principal insurance subsidiary, is reduced to $100 million from the prior $200 million. Also, the date by which such contribution is to be made is extended to December 1, 2012 from September 30, 2012.
The jurisdictions in which MGIC Indemnity Corporation ("MIC"), MGIC's subsidiary, is approved by Freddie Mac to write new business is expanded to cover all of the 16 jurisdictions besides Wisconsin that have specific regulatory capital requirements when MGIC is not able to write new business in a jurisdiction because MGIC would not meet those requirements, after considering any waiver that may be granted. Also, the period for which MIC is approved is through December 31, 2013 rather than the prior December 31, 2012 date.
Continuation of Freddie Mac's approval of MIC requires the $100 million capital contribution be made by December 1, 2012. It also requires the two additional conditions in Freddie Mac's August 1, 2012 letter be met.