MGIC Investment Corporation Releases Monthly Operating Statistics
MGIC Investment Corporation (NYSE: MTG) released its Operational Summary for August 2020, detailing key metrics related to mortgage insurance. The total beginning primary delinquent inventory was 68,206 loans, down from 69,326 in July. New delinquency notices totaled 6,423, a decrease from 8,463 in July, while cures were 7,868. The report indicates that 59% of new delinquency notices were in forbearance, reflecting the ongoing impact of the COVID-19 pandemic on the mortgage industry. The company emphasizes the potential for significant changes based on economic conditions.
- Decrease in new delinquency notices from July (8,463) to August (6,423).
- Cures increased in August (7,868) compared to July (9,452), showing recovery in payments.
- Beginning primary delinquent inventory remains high at 68,206 loans.
- 59% of new delinquency notices are reported to be in forbearance.
MILWAUKEE, Sept. 9, 2020 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today issued an Operational Summary of its insurance subsidiaries for the month of August 2020 for their primary mortgage insurance. The summary is also 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.
Notices of delinquency are typically reported to us when loans are two payments past due (for example, for August we report as a new delinquency any delinquent loan, that is reported to us as having missed its July 1st (or earlier) payment that was not previously reported to us.) We expect the number of delinquencies will be impacted by the COVID-19 pandemic. The magnitude of the impact, which may be significant, will be influenced by various factors, including the length and severity of the pandemic in the United States, the length of time that measures intended to reduce the transmission of COVID-19 remain in place, the resulting level of unemployment, and the impact of various government initiatives to mitigate the economic harm caused by COVID-19 and efforts to reduce its transmission
The information concerning the percentage of loans in forbearance is based on the most recent information provided by Fannie Mae and Freddie Mac (the GSEs), as well as loan servicers, and we believe represents only forbearances related to COVID-19. While the forbearance information provided by the GSEs refers to delinquent loans in forbearance as of the prior month-end, the information provided by loan servicers may be more current.
June | July | August | |
Beginning Primary Delinquent Inventory (# of loans) | 56,271 | 69,326 | 68,206 |
Plus: New Delinquency Notices | 19,358 | 8,463 | 6,423 |
Less: Cures | 6,145 | 9,452 | 7,868 |
Less: Paids | 153 | 127 | 132 |
Less: Rescissions and Denials | 5 | 4 | 3 |
Ending Primary Delinquent Inventory (# of loans) | 69,326 | 68,206 | 66,626 |
% of New Delinquency Notices in Forbearance | |||
% of Primary Delinquent Inventory in Forbearance |
About MGIC
Mortgage Guaranty Insurance Corporation "MGIC" (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality.
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and 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.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward looking statements. Forward looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements. More information about the risks, uncertainties and assumptions affecting the company can be found in the risk factors included as Exhibit 99 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, and in other filings we make with the Securities and Exchange Commission. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was issued.
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SOURCE MGIC Investment Corporation
FAQ
What is the current state of MGIC Investment Corporation's delinquencies as of August 2020?
How many new delinquency notices did MGIC receive in August 2020?
What percentage of new delinquency notices are in forbearance as reported by MGIC?
How does MGIC's August 2020 delinquency data compare to previous months?
What is the reason for the reported delinquencies according to MGIC?
