MGIC Investment Corp. (MTG)

[tommiegun54]

MGIC LOAN LOSSES DECLINED 51%/$266 MILLION IN 2017

Late stage delinquent loans are declining as loan mitigation of loans backed by appreciating real estate prices, lead to fewer loses.The correlation of declining losses on appreciating real estate could play out for the foreseeable future.

Bottom line is, declining loan Losses will increase profitability for MGIC INVESTMENT. During the fourth quarter conference call, Patrick Sinks, CEO of MGIC indicated that excess assets available for PMIERS calculations could have ended December 31, 2017 approximately increased by $100 million to $900 million, if not for hurricane related defaults. Hurricane related defaults are declining now.

Many of the late stage delinquency are related to loans granted leading up to great recession that started in 2008. The late stage defaults have now declined from 54% as of December 31, 2015 to just 37% as of FYE 2017.

DELINQUENT LOANS 12 OR MORE MONTHS

FYE........ 2017 ....2016 ......2015
# of loans: 17,387...24,638.....33,817
% of loans:.37.......49.........54