MGIC reports $34.4 million first quarter loss
Milwaukee-based MGIC Investment Corp. recently reported a net loss of $34.4 million for the first quarter, compared with net income of $92.4 million for the same period a year ago. The company’s loss per share was 41 cents for the quarter, compared with earnings per share of $1.12 for the same quarter a year ago.
MGIC’s total revenues for the first quarter were $423.9 million, compared with $369.6 million in the first quarter of 2007. Net premiums written for the quarter were $368.5 million, compared with $304.0 million in the first quarter last year. New insurance written in the first quarter was $19.1 billion, compared to $12.7 billion in the first quarter of 2007. The company’s financial results continue to be affected by increases in both the number of delinquent loans and foreclosures that have resulted as home prices declined further and the economy slowed, said Curt Culver, chairman and chief executive officer of MGIC.
In addition, higher loss severities and lower cure ratios, especially in California and Florida, also negatively impacted results. Culver said he is pleased that the improvements in business fundamentals, including higher persistency, insurance in force growth and improved credit standards are developing as expected and should benefit MGIC financially over the long-term.
He also said that, in response to the unprecedented market conditions, the company has taken numerous actions designed to bolster its financial strength, including increasing its already strong capital resources by approximately $840 million through recent sales of securities, significantly changing its underwriting guidelines, discontinuing writing Wall Street bulk transactions, increasing pricing, pursuing reinsurance options and negotiating the possible sale of its interest in Sherman Financial Group LLC back to Sherman.
Kohl co-sponsors bill to clamp down on mortgage scams
Senators Herb Kohl (D-Wis.), Susan Collins (R-Maine) and Blanche Lincoln (D-Ariz.) have unveiled bipartisan legislation to protect financially distressed homeowners from unscrupulous financial predators. The Foreclosure Rescue Fraud Act of 2008 would help end the dramatic increase of mortgage schemes that have risen nationally by 800 percent in the last five years, with an estimated 60,000 cases expected this year.
"More and more Americans already facing the financial trauma of foreclosure are also falling victim to scam artists who trick them with a false message of hope," Kohl said. "The time is now for Congress to attack this growing problem, which is a direct consequence of the mortgage crisis plaguing this country. I urge my colleagues in the Senate to support our bipartisan legislation that would end these cruel acts of fraud against struggling homeowners."
Foreclosure rescue scams prey on homeowners in the process of foreclosing their homes and especially vulnerable to deceptive practices that seem to offer hope. Instead, the scams often leave the victims facing a far worse financial predicament, sometimes ruining their credit rating entirely and stripping away their equity, making it almost impossible for them to recover financially.
The Foreclosure Rescue Fraud Act would create strict requirements for a person or entity offering foreclosure rescue services. The legislation would prohibit a foreclosure consultant from collecting any fee or compensation before completing contracted services.
Investor infuses capital into IMS
Praetorian Offshore, Ltd., a major investor in the New Berlin-based business-to-business barter service firm International Monetary Systems, Ltd., has exercised 550,000 warrants at a price of $0.55, providing IMS with an additional $302,500 of invested capital. The company plans to use the funds as working capital for their concentrated efforts in expanding the IMS barter network with new members, continued establishment of best practices and further infrastructure improvements and upgrades.
Founded in 1985, IMS serves 17,600 customers representing 23,000 cardholders in 49 North American markets including Canada. IMS is one of the largest publicly traded barter companies in the world and is continually expanding its network by adding exchange locations. The company’s proprietary transaction clearing software enables businesses and individuals to trade goods and services online throughout North America, using an electronic currency known as trade dollars.
Heartland Credit Union selects Third Ward PR agency
Heartland Credit Union, a Madison-based credit union, has selected Blue Horse to handle its marketing communications efforts. Heartland has seven locations serving southwestern Wisconsin and eastern Iowa. Blue Horse, located at 241 N. Broadway, is a full-service marketing communications agency providing advertising, public relations, branding and promotion support on behalf of a broad range of consumer, business-to-business and health care accounts.
