MGIC Investment Corp. reported a third quarter net loss of $517.8 million.
Milwaukee-based MGIC Investment Corp. has reported a third quarter net loss of $517.8 million, or $4.17 per share, which was worse than a net loss of $115.4 million, or 93 cents per share, for the same period a year ago.
Curt Culver, chairman and chief executive officer of MGIC and Mortgage Guaranty Insurance Corp., said the weak economy, higher unemployment and lower home prices continue to keep cure rates low, which resulted in an increase in the delinquent inventory and consequently higher losses incurred for the quarter.
Culver said that while there has been minimal financial benefit to date, for the first time the company is seeing signs that the various loan modification programs of the U.S. Treasury Department and the private sector that are designed to help responsible homeowners avoid foreclosure are being implemented.
Culver reported that Fannie Mae has approved MGIC Indemnity Corp. as an approved mortgage insurer in selected jurisdictions. MGIC is working closely with Freddie Mac and hopes to have its approval soon, Culver said. Once Freddie Mac’s approval is finalized, Culver said he is optimistic that the Office of the Commissioner of Insurance for the State of Wisconsin will issue a decision allowing the reactivation of MIC in the very near future.
MGIC’s total revenues for the third quarter were $413.3 million, down from $461.6 million in the same period a year ago.