MGIC Investment Corporation has contributed $200m to its principal insurance operation, Mortgage Guaranty Insurance Corporation (MGIC) to increase its statutory capital in a move to meet regulatory capital requirements.
The new capital contribution follows MGIC Investment’s plan to allow MGIC to continue writing new mortgage insurance business nationwide without the need for any waiver of capital requirements.
MGIC and Investment Board chairman and CEO Curt Culver said that the additional capital contribution will enable the company to support its policyholders and the US housing market.
The additional contribution enables MGIC to remain as an eligible insurer for both Fannie Mae and Freddie Mac as well as from the Office of the Commissioner of Insurance for the State of Wisconsin (OCI).
Currently, the company is in discussions with the OCI, Fannie Mae and Freddie Mac regarding the terms of the waiver and approvals as MGIC’s capital is set to diminish in 2012.