Wisconsin Approves MGIC Plan

MGIC Investment Corp., Milwaukee, has cleared another hurdle in its plan to write new business through a reactivated unit, MGIC Indemnity Corp. The Office of the Commissioner of Insurance for Wisconsin has waived a requirement that MGIC maintain a specific level of minimum regulatory capital; the waiver lasts until Dec. 31, 2011. MIC is a subsidiary of the company's primary operating unit, Mortgage Guaranty Insurance Corp. The regulator also approved a change in the business plan for MIC where the reactivated subsidiary would only write new policies in states which MGIC's primary mortgage underwriting unit no longer met minimum capital requirements. There are 17 states that impose some sort of requirement, including Wisconsin, where MGIC is domiciled. Previously, Fannie Mae had approved MIC as an eligible mortgage insurer through Dec. 31, 2011. However, Freddie Mac has yet to approve MIC. MIC has been capitalized by MGIC with $200 million.