Date of Report (Date of Earliest Event Reported):
July 2, 2018
(State or other jurisdiction
250 E. Kilbourn Avenue, Milwaukee, Wisconsin
(Address of principal executive offices)
Registrant’s telephone number, including area code:
Former name or former address, if changed since last report
Competition or changes in our relationships with our customers could reduce our revenues, reduce our premium yields and / 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.
The benefit of our net operating loss carryforwards may become substantially limited.
We are involved in legal proceedings and are subject to the risk of additional legal proceedings in the future.
We are subject to comprehensive regulation and other requirements, which we may fail to satisfy.
Resolution of our dispute with the Internal Revenue Service could 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.
Because we establish loss reserves only upon a loan delinquency rather than based on estimates of our ultimate losses on risk in force, losses may have a disproportionate adverse effect on our earnings in certain periods.
Recent hurricanes may impact our incurred losses, the amount and timing of paid claims, our inventory of notices of default and our Minimum Required Assets under PMIERs.
Because loss reserve estimates are subject to uncertainties, paid claims may be substantially different than our loss reserves.
We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements.
If the volume of low down payment home mortgage originations declines, the amount of insurance that we write could decline.
State capital requirements may prevent us from continuing to write new insurance on an uninterrupted basis.
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 financial condition and results of operations.
We are susceptible to disruptions in the servicing of mortgage loans that we insure.
Changes in interest rates, house prices or mortgage insurance cancellation requirements may change the length of time that our policies remain in force.
Your ownership in our company may be diluted by additional capital that we raise or if the holders of our outstanding convertible debt convert that debt into shares of our common stock.
Our holding company debt obligations materially exceed our holding company cash and investments.
We could be adversely affected if personal information on consumers that we maintain is improperly disclosed and our information technology systems may become outdated and we may not be able to make timely modifications to support our products and services.
Our success depends, in part, on our ability to manage risks in our investment portfolio.
MGIC INVESTMENT CORPORATION
Date: July 2, 2018
By:/s/ Timothy J. Mattke
Timothy J. Mattke
Executive Vice President and Chief Financial Officer