MGIC Announces Reduced Borrower-Paid Premium Rates
Borrower-paid mortgage insurance premium rates on the most popular premium plans have been reduced by an average of approximately 11%.
Down payment remains the number one obstacle to homeownership and borrower-paid monthly premiums, because they are cancelable, are one of the most popular and affordable ways to overcome this obstacle.
Sinks added, "While we are lowering premium rates, MGIC will continue to have a strong capital position that protects policyholders while achieving returns for shareholders that are commensurate with the risk associated with low-down payment lending."
The new rates are effective
MGIC (www.mgic.com), the principal subsidiary of
From time to time
Safe Harbor Statement
Forward Looking Statements and Risk Factors
Our actual results could be affected by the risk factors below. These risk factors may also cause actual results to differ materially from the results contemplated by forward looking statements regarding our capital position and returns or other statements that may be forward looking statements in the foregoing press release. More detail about these risks may be found in Item 1A of our Annual Report on Form 10-K for the year ended
- Competition or changes in our relationships with our customers could reduce our revenues or increase our losses.
- The amount of insurance we write could be adversely affected if lenders and investors select alternatives to private mortgage insurance.
- Changes in the business practices of the GSEs, federal legislation that changes their charters or a restructuring of the GSEs could reduce our revenues or increase our losses.
- We may not continue to meet the GSEs' private mortgage insurer eligibility requirements and our returns may decrease as we are required to maintain more capital in order to maintain our eligibility.
- We are involved in legal proceedings and are subject to the risk of additional legal proceedings in the future.
- Resolution of our dispute with the
Internal Revenue Servicecould adversely affect us.
- If our risk management programs are not effective in identifying, or adequate in controlling or mitigating, the risks we face, or if the models used in our businesses are inaccurate, it could have a material adverse impact on our business, results of operations and financial condition.
- Downturns in the domestic economy or declines in the value of borrowers' homes from their value at the time their loans closed may result in more homeowners defaulting and our losses increasing, with a corresponding decrease in our returns.
- The mix of business we write affects our Minimum Required Assets under the PMIERs, our premium yields and the likelihood of losses occurring.
- The premiums we charge may not be adequate to compensate us for our liabilities for losses and as a result any inadequacy could materially affect our capital and returns.
(Investor) Michael J. Zimmerman, (414) 347-6596, email@example.com