MGIC Comments on the Recently Adopted PMIERs Updates

MILWAUKEE, Aug. 21, 2024 /PRNewswire/ -- Mortgage Guaranty Insurance Corporation (MGIC), the principal subsidiary of MGIC Investment Corporation (NYSE: MTG), comments on the updates by the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to the Private Mortgage Insurer Eligibility Requirements (PMIERs) Available Assets Standards.

"We are proud of the critical role private mortgage insurance (MI) plays in the housing finance system. PMIERs operational and risk-based capital requirements provide a strong foundation to serve low down payment borrowers while protecting the GSEs and taxpayers from undue mortgage credit risk and private MIs continue to be strong, well-capitalized counterparties," said Tim Mattke, CEO of MTG. "We appreciate the collaboration with the GSEs and support prudent PMIERs changes," added Mr. Mattke.

The latest updates relate to exclusions, concentration limits, and haircuts to investments that qualify as Available Assets and will be implemented over a 24-month phased-in period, with a fully effective date of September 30, 2026. If these changes were effective as of June 30, 2024, without a graduated implementation period, MGIC's Available Assets of $5.8 billion would decrease by approximately 1% or $50 million, and MGIC's PMIERs excess would be $2.3 billion.

About MGIC

Mortgage Guaranty Insurance Corporation ("MGIC") (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality through the use of private mortgage insurance.

From time-to-time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website, and it intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

SOURCE MGIC Investment Corporation