MGIC Files Suit To Resolve Pool Dispute

MGIC Investment Corporation

announced today that its Mortgage Guaranty Insurance Corporation subsidiary has filed a lawsuit in Federal District Court in Milwaukee, Wisconsin against Freddie Mac and the Federal Housing Finance Administration (Freddie Mac's conservator) regarding the pool insurance dispute between MGIC and Freddie Mac. The dispute has been described for some time in MGIC Investment's public disclosures, including on pages 16-17 of Investment's April 23, 2012 earnings release. Investment said it would not comment on the suit beyond a communication it has sent to Freddie Mac, which said in part: That we took the initiative in seeking to resolve our dispute through the judicial system does not mean we cannot seek to resolve it "out of court." Indeed, we welcome the opportunity to continue such discussions, but could not accept the terms on which Freddie Mac was willing to do so.