MGIC Investment Corp. announced that its Mortgage Guaranty Insurance Corp. subsidiary has filed a lawsuit in Federal District Court in Milwaukee against Freddie Mac and the Federal Housing Finance Administration (Freddie Mac’s conservator) regarding the pool insurance dispute between MGIC and Freddie Mac.
MGIC said it would not comment on the suit beyond a communication it has sent to Freddie Mac, which said in part: “That we took the initiative in seeking to resolve our dispute through the judicial system does not mean we cannot seek to resolve it ‘out of court.’ Indeed, we welcome the opportunity to continue such discussions, but could not accept the terms on which Freddie Mac was willing to do so. As Freddie Mac’s largest mortgage insurance counterparty, we place the highest value on the long and fruitful relationship between our two companies. We trust our attempt to seek resolution of this dispute through litigation will not affect that relationship. From our perspective, we intend to conduct “business as usual” on the various matters between us and hope after due reflection Freddie Mac will concur this approach makes sense.”
MGIC is the nation’s largest private mortgage insurer as measured by $169.0 billion primary insurance in force covering 1.1 million mortgages.