UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Item 7.01 Regulation FD Disclosure.
Operating Statistics. Following are selected operating statistics for the insurance subsidiaries of MGIC Investment Corporation (NYSE: MTG) for the month of May 2020. In light of the impact COVID-19 has had, and is expected to have, on the company’s delinquent loan inventory, until further notice, these statistics will be reported on a monthly basis. Future statistics will be reported in press releases that will be available on the company's investor website under Newsroom, Press Releases.
The information concerning new delinquency notices and cures is compiled from reports received from loan servicers. The level of new notice and cure activity reported in a particular month can be influenced by, among other things, the date on which a servicer generates its report, the accuracy of the data provided by servicers, the number of business days in a month, transfers of servicing between loan servicers, and whether all servicers have provided the reports in a given month. We continue to work with servicers to enhance the reporting of delinquent loans that are in forbearance and plan to include this information in future press releases.
April 2020 | May 2020 | |||
Beginning Primary Delinquency Inventory (# of loans) | 27,384 | 30,243 | ||
Plus: New Delinquency Notices | 7,109 | 31,117 | ||
Less: Cures | 3,943 | 4,876 | ||
Less: Paids | 300 | 208 | ||
Less: Rescissions and Denials | 7 | 5 | ||
Ending Primary Delinquency Inventory (# of loans) | 30,243 | 56,271 | ||
Insurance Linked Notes (ILN) Transactions Trigger Event. For each outstanding insurance linked notes transaction of Mortgage Guaranty Insurance Corporation (MGIC) (which provide excess of loss reinsurance), a “Trigger Event” has occurred, effective May 31, 2020, because the reinsured principal balance of loans that were reported delinquent, as provided in the ILN documents, exceeded 4% of the total reinsured principal balance of loans under each transaction. While the “Trigger Event” is in effect, payment of principal on the related notes will be suspended and the reinsurance coverage available to MGIC under the transactions will not be reduced by such principal payments. For more information about the insurance linked notes transactions, see the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 7, 2020.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MGIC INVESTMENT CORPORATION | ||
Date: | June 25, 2020 | By: \s\ Paula C. Maggio |
Paula C. Maggio | ||
Executive Vice President, General Counsel and Secretary | ||