Profile: MGIC Investment Corp (MTG)
17 Jul 2019
MGIC Investment Corporation, incorporated on June 21, 1984, is a holding company. The Company, through its subsidiaries, provides private mortgage insurance and ancillary services. The Company provides mortgage insurance to lenders throughout the United States and to government-sponsored entities to protect against loss from defaults on low-down payment residential mortgage loans. Its principal product is primary mortgage insurance. Through certain other non-insurance subsidiaries, the Company also provides various services for the mortgage finance industry, such as contract underwriting, analysis of loan originations and portfolios, and mortgage lead generation. The Company invests in sectors, such as corporate, tax-exempt municipals, taxable municipals, asset backed, Government National Mortgage Association (GNMA) pass-through certificates, escrowed/prerefunded municipals, United States treasuries, and equities and other. The Company's subsidiaries include Mortgage Guaranty Insurance Corporation (MGIC) and MGIC Indemnity Corporation (MIC).
The Company offers two principal types of private mortgage insurance: primary and pool. Primary insurance provides mortgage default protection on individual loans and covers a percentage of the unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure or sale approved by the Company (collectively, the claim amount). Primary insurance is generally written on first mortgage loans secured by owner-occupied single-family homes, which are one- to four-family homes and condominiums. Primary insurance can be written on first liens secured by non-owner occupied single-family homes, and on vacation or second homes. Primary coverage can be used on any type of residential mortgage loan instrument approved by the mortgage insurer. The borrower's mortgage loan instrument may require the borrower to pay the mortgage insurance premium. Most of its primary insurance in force (IIF) is borrower-paid mortgage insurance. Under the single premium plan, the borrower or lender pays in advance a single payment covering a specified term exceeding 12 months. Under the monthly premium plan, the borrower or lender pays a monthly premium payment to provide only one month of coverage. Under the annual premium plan, an annual premium is paid in advance, with annual renewal premiums paid in advance thereafter. Pool insurance is generally used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance generally covers the amount of the loss on a defaulted mortgage loan that exceeds the claim payment under the primary coverage, if primary insurance is required on that mortgage loan, as well as the total loss on a defaulted mortgage loan, which did not require primary insurance.
Other Products and Services
The Company's contract underwriting services are provided for loans that require private mortgage insurance, as well as for loans that do not require private mortgage insurance. The Company provides various fee-based services for the mortgage finance industry, such as analysis of loan originations and portfolios, and mortgage lead generation.
The Company competes with Arch Mortgage Insurance Company, Essent Guaranty, Inc., Genworth Mortgage Insurance Corporation, National Mortgage Insurance Corporation and Radian Guaranty Inc.
MGIC Investment Corp
250 E Kilbourn Ave
MILWAUKEE WI 53202-3102