UPDATE 1-MGIC says terminates credit facility

* Says no defaults occurred

* Shares fall as much as 11 percent

June 17 (Reuters) - Mortgage insurer MGIC Investment Corp (MTG.N) said it notified lenders that it is terminating all of the lenders' commitments under its revolving credit facility, sending its shares down as much as 11 percent.

The action will terminate the credit facility and eliminate its obligation to pay a facility fee, which on a quarterly basis is about $0.5 million, the company said in a regulatory filing.

Earlier this month, MGIC said it would repay lenders the entire $200 million outstanding under a credit facility on June 12 and there are no defaults under it. [ID:nBNG413370]

Mortgage insurers like MGIC, PMI Group Inc (PMI.N), Radian Group Inc (RDN.N) have suffered huge losses from backing subprime bonds and mortgages that saw a surge in defaults as U.S. credit and housing markets worsened.

U.S. officials are currently conducting a review of the mortgage insurance industry to determine the present health and future viability of the specialty finance firms battered by the housing downturn.

Shares of the Milwaukee, Wisconsin-based company were trading down about 5 percent at $4.05 Wednesday on the New York Stock Exchange. They traded as low as 70 cents in March. (Reporting by Anurag Kotoky in Bangalore; Editing by Ratul Ray Chaudhuri)