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MGIC Provides Update On MIC

Has delayed the date to make its first contribution of capital to MGIC Indemnity Corporation, MIC

Mortgage Guaranty Insurance Corporation (MGIC) has delayed the date on which it plans to make its first contribution of capital to MGIC Indemnity Corporation (MIC). It is to be determined by MGIC and acceptable to the Office of the Commissioner of Insurance of Wisconsin (OCI).

This is in reference with talks to have MGIC’s wholly-owned subsidiary, MGIC Indemnity Corporation (MIC), approved as a mortgage insurer by Fannie Mae and Freddie Mac. Meanwhile, OCI has approved this delay at MGIC’s request.

As per the plan for MIC to begin writing new mortgage insurance business as of January 1, 2010, the OCI allowed MGIC to contribute up to $1 billion to MIC. MGIC’s contribution was to be made in two $500 million installments, the first of which was to be made not later than July 31, 2009.

The second contribution was to be made within five business days after January 1, 2011, if MIC was then writing new business and the contribution was not disallowed by the OCI. MIC’s writing new business is subject to the specific authorization of the OCI.

MGIC, a subsidiary of MGIC Investment Corporation, is a provider of private mortgage insurance coverage.