MGIC Investment Corporation Schedules 2nd Quarter 2020 Earnings Call and Releases Monthly Operating Statistics

Rhea-AI Summary

MGIC Investment Corporation (NYSE: MTG) has announced the release of its 2^nd quarter 2020 financial results on August 5, 2020, before market opening. A conference call will be held at 10:00 a.m. ET to discuss the results for the quarter ending June 30, 2020. Notably, MGIC reported a significant increase in its primary delinquent inventory, rising from 30,243 loans in May to 69,326 in June, reflecting challenges amid the COVID-19 pandemic. The company expects continued increases in delinquencies due to ongoing economic pressures.

Positive

• Scheduled conference call for earnings results indicates transparency and investor communication.
• Operating statistics released for June 2020 help investors assess current performance.

Negative

• Primary delinquent inventory increased from 30,243 in May to 69,326 in June, a rise of 128%.
• Anticipated increase in delinquencies due to COVID-19 could impact financial stability.

MILWAUKEE, July 8, 2020 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) has announced plans to release its 2^nd quarter 2020 financial results before the market opens on Wednesday August 5, 2020.  A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time to discuss the Company's results for the quarter ended June 30, 2020.

Individuals interested in joining by telephone should dial 1-866-834-4126 ten minutes before the conference call begins. The call is also being webcast and can be accessed via the company's website http://mtg.mgic.com under Newsroom. A replay of the webcast will be available on the company's website through September 5, 2020.

MGIC also today issued selected operating statistics for its insurance subsidiaries for the month of June 2020 for their primary mortgage insurance. The statistics are 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 June we report as a new delinquency any delinquent loan that missed its May 1^st (or earlier) payment that was not previously reported to us.)  We expect the number of delinquencies will increase as a result of the COVID-19 pandemic.  The magnitude of the increase, 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.

	April	May	June
Beginning Primary Delinquent Inventory (# of loans)	27,384	30,243	56,271
Plus: New Delinquency Notices	7,109	31,117	19,358
Less: Cures	3,943	4,876	6,145
Less: Paids	300	208	153
Less: Rescissions and Denials	7	5	5
Ending Primary Delinquent Inventory (# of loans)	30,243	56,271	69,326
% of New Delinquency Notices in Forbearance	(1)	(1)	80%
% of Primary Delinquent Inventory in Forbearance	(1)	(1)	67%

(1)	Statistics have not been updated from prior month reporting.

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 March 31, 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

When will MGIC Investment Corporation release its second quarter 2020 earnings?

MGIC Investment Corporation will release its second quarter 2020 earnings on August 5, 2020.

What time is the MGIC earnings conference call scheduled?

The earnings conference call is scheduled for 10:00 a.m. Eastern Time.

What were the new delinquency notices reported by MGIC in June 2020?

MGIC reported 19,358 new delinquency notices in June 2020.

What was the primary delinquent inventory for MGIC in June 2020?

The primary delinquent inventory for MGIC in June 2020 was 69,326 loans.

How is COVID-19 affecting MGIC's delinquency rates?

MGIC expects an increase in delinquency rates due to the economic impact of COVID-19.