Milwaukee-based MGIC Investment Corp. today reported second quarter net income of $45.5 million, or 12 cents per share, up from $12.4 million, or 4 cents per share, in the second quarter of 2013.
Total revenues were $231.2 million, down from $263.9 million in the same period a year ago.
MGIC wrote $8.3 billion in new insurance in the quarter, up from $8 billion in the second quarter of 2013. It had $159.3 billion of primary insurance in force at the end of the quarter, up from $158.6 billion at the same point last year.
There were also fewer delinquent loans, at 7.3 percent excluding bulk loans, compared to 10.2 percent in the second quarter of 2013. Losses incurred were $141.1 million, down from $196.3 million last year, mostly because of fewer notices of default being received and a lower claim rate on new delinquency notes.
“I am pleased that the positive operating trends affecting new insurance writings and credit performance continued and resulted in another profitable quarter,” said Curt Culver, chief executive officer and chairman of Mortgage Guaranty Insurance Corp. and MGIC Investment Corp.
The Federal Housing Finance Agency recently proposed government-sponsored enterprises mortgage insurance eligibility requirements that would impact MGIC. The rules would require an insurer to have available assets equal to or greater than minimum required assets to “ensure that approved insurers have adequate liquidity and claims-paying capacity during periods of economic stress.”
“Throughout the financial crisis MGIC has demonstrated its commitment to remaining an approved mortgage insurer with the GSEs and I expect we will meet the requirements of the proposed mortgage insurer eligibility requirements even if they become effective in their current form,” Culver said. “We will be providing comments to the FHFA and the GSEs to reflect the appropriate changes required to the proposed standards such that they promote a liquid, affordable and stable housing market that reduces taxpayer risk, incent private capital to participate, and keep the cost of homeownership financing affordable.”
