MGIC Sees More Credit Losses
MGIC Investment Corp. here saw a net loss of $97.9 million ($0.79 per share) for the second quarter, compared with net income of $76.7 million ($0.93 per share) a year earlier.
Curt S. Culver, MGIC's chairman and chief executive, said the loss stemmed from increases in delinquencies and foreclosures.
He also noted that the company during the second quarter had made additional underwriting changes, increased premiums on all insurance products, amended its revolving credit facility and entered into a reinsurance agreement for new writings.
Delinquencies, including loans insured through the bulk channel, totaled 8.60% as of June 30, compared with 6.11% a year earlier, MGIC reported. Losses incurred in the quarter totaled $688.1 million, up from $235.2 million for the same period in 2007.
New insurance written totaled $14 billion in the second quarter, compared with $19 billion a year earlier. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/