MGIC returns to profitability

Reflecting the growing rebound of the U.S. housing market, Milwaukee-based MGIC Investment Corp. today reported its first quarterly profit since 2010.

 
The company’s net income for the quarter ended June 30 increased to $12.4 million, or 4 cents per share, compared with a net loss of $273.9 million, or $1.36 per share, in the same period a year ago.

Total revenues for the second quarter were $263.9 million, compared with $321.1 million in the second quarter last year.

At June 30, 2013, the percentage of loans that were delinquent, excluding bulk loans, was 10.16 percent, compared with 12.51 percent at June 30, 2012.

Curt Culver, chief executive officer and chairman of the board of Mortgage Guaranty Insurance Corporation, said, “I am pleased with the credit quality and performance of the new business we have written since 2009 and am happy to report that for the first half of 2013 we had a 45-percent increase, year over year, in the amount of new business.”

Culver added that he is “encouraged about the recent credit performance given that as of quarter end the number of delinquent loans decreased 24 percent year over year, and are at their lowest point in the last five years.”

Culver said the company’s volume of foreclosure claims has fallen 29 percent.

MGIC is the largest mortgage insurer for both Fannie Mae (FNMA) and Freddie Mac.

“Overall, we feel our company is in excellent position to take advantage of the housing recovery,” Culver said in a conference call with analysts this morning.

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