MILWAUKEE, May 17, 2012 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced today that its Mortgage Guaranty Insurance Corporation subsidiary has filed a lawsuit in Federal District Court in Milwaukee, Wisconsin against Freddie Mac and the Federal Housing Finance Administration (Freddie Mac's conservator) regarding the pool insurance dispute between MGIC and Freddie Mac. The dispute has been described for some time in MGIC Investment's public disclosures, including on pages 16-17 of Investment's April 23, 2012 earnings release.
Investment said it would not comment on the suit beyond a communication it has sent to Freddie Mac, which said in part:
That we took the initiative in seeking to resolve our dispute through the judicial system does not mean we cannot seek to resolve it "out of court." Indeed, we welcome the opportunity to continue such discussions, but could not accept the terms on which Freddie Mac was willing to do so.
As Freddie Mac's largest mortgage insurance counterparty, we place the highest value on the long and fruitful relationship between our two companies. We trust our attempt to seek resolution of this dispute through litigation will not affect that relationship. From our perspective, we intend to conduct "business as usual" on the various matters between us and hope after due reflection Freddie Mac will concur this approach makes sense.About MGIC MGIC ( www.mgic.com), the principal subsidiary of MGIC Investment Corporation, is the nation's largest private mortgage insurer as measured by $169.0 billion primary insurance in force covering 1.1 million mortgages as of March 31, 2012. MGIC 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 without making any other disclosure and intends to continue to do so in the future. 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 can be found at http://mtg.mgic.com under Investor Information . SOURCE MGIC Investment Corporation
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV