MGIC Investment Corp. (MTG)

[tommiegun54]

3084 MGIC HURRICANE AND OTHER CLAIMS MOUNT IN NOVEMBER.

MGIC ISSUED A PUBLIC STATEMENT OUTLINED THEIR PROCESS OF CLAIMS. This morning......


"
November 2016
Change
Insurance in Force (billions)
$193.5
$181.3
6.7%
Flow Only
$185.3
$171.9
7.8%
Beginning Primary Delinquent Inventory (# of loans)
43,816
50,612
(13.4%)
Plus: New Delinquency Notices – Non-Hurricane Impacted Areas (1)
4,350
4,953
(12.2%)
Plus: New Delinquency Notices - Hurricane Impacted Areas (1)
4,525
633
614.8%
Less: Cures
5,149
5,063
1.7%
Less: Paids (including those charged to a deductible or captive reinsurer)
617
944
(34.6%)
Less: Rescissions and Denials
25
55
(54.5%)
Ending Primary Delinquent Inventory (# of loans)
46,900
50,136
(6.5%)
(1) Hurricane impacted areas are locations that the Federal Emergency Management Agency has declared Individual Assistance Disaster Areas as a result of hurricanes Harvey, Irma and Maria. There were 12,626 and 7,156 loans in our Ending Primary Delinquent Inventory as of November 30, 2017 and 2016, respectively, that were located in these areas. Based on our analysis and past experience, we do not expect the increased level of notices received in those areas to result in a material increase in our incurred losses or paid claims. The Private Mortgage Insurer Eligibility Requirements of Fannie Mae and Freddie Mac require us to maintain significantly more "Minimum Required Assets" for delinquent loans than for performing loans. We expect the increase in delinquency notices to result in a temporary increase in "Minimum Required Assets" and a decrease in the level of our excess "Available Assets" under the PMIERs. Due to the suspension of certain foreclosures by the GSEs, our receipt of claims associated with foreclosed mortgages in the hurricane-affected areas may be delayed. The following factors could cause our actual results to differ from our expectations in the forward looking statements in this press release:

Third party reports that indicate the extent of flooding in the hurricane-affected areas may be understated.
Home values in hurricane-affected areas may decrease at the time claims are filed from their current levels thereby adversely affecting our ability to mitigate loss.
Hurricane-affected areas may experience deteriorating economic conditions resulting in more borrowers defaulting on their loans in the future (or failing to cure existing defaults) than we currently expect.
If an insured contests our claim denial or curtailment, there can be no assurance we will prevail. We describe how claims under our policy are affected by damage to the borrower's home in our Current Report on Form 8-K filed with the SEC on September 14, 2017.
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About MGIC

MGIC (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality. At November 30, 2017, MGIC had $193.5 billion of primary insurance in force covering approximately one million mortgages.

From time to time MGIC Investment Corporation releases important information via postings on its corporate website, including corrections of previous disclosures, without making any other disclosure and intends to continue to do so in the future. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information can be found at http://mtg.mgic.com under Investor Information.

View original content:http://www.prnewswire.com/news-releases/mgic-investment-corporation-releases-monthly-operating-statistics-300568773.html

SOURCE MGIC Investment Corporation



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