MGIC Investment Corporation Releases Monthly Operating Statistics
MGIC Investment Corporation (NYSE: MTG) released its November 2020 Operational Summary for primary mortgage insurance. The report indicates a decline in primary delinquent inventory, ending at 59,236 loans from 61,521 in October. New delinquency notices were reported at 5,024 for November, down from 5,228 the previous month. Cures decreased to 7,212 from 8,020. The percentage of delinquent loans in forbearance has also dropped to 49%. The ongoing impact of COVID-19 continues to influence these metrics, highlighting the uncertain economic environment.
- Decrease in primary delinquent inventory from 61,521 in October to 59,236 in November.
- Reduction in new delinquency notices from 5,228 in October to 5,024 in November.
- Cures declined at a slower rate to 7,212 from 8,020, indicating some stability.
- Ongoing impact of COVID-19 on delinquency rates and mortgage insurance stability.
MILWAUKEE, Dec. 8, 2020 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today issued an Operational Summary of the primary mortgage insurance of its insurance subsidiaries for the month of November 2020. 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 November we report as a new delinquency any delinquent loan that missed its October 1st (or earlier) payment that was not previously reported to us.) We expect the number of delinquencies will continue to 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 substantially all reported forbearances are 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.
September | October | November | |
Beginning Primary Delinquent Inventory (# of loans) | 66,626 | 64,418 | 61,521 |
Plus: New Delinquency Notices | 6,038 | 5,228 | 5,024 |
Less: Cures | 8,126 | 8,020 | 7,212 |
Less: Paids | 116 | 105 | 95 |
Less: Rescissions and Denials | 4 | - | 2 |
Ending Primary Delinquent Inventory (# of loans) | 64,418 | 61,521 | 59,236 |
% of New Delinquency Notices in Forbearance | |||
% of Primary Delinquency 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 September 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 are the new delinquency notices reported by MGIC for November 2020?
How many loans are in primary delinquent inventory as of November 2020?
What percentage of delinquent loans were in forbearance in November 2020?
How does COVID-19 affect MGIC's delinquency rates?
