Mortgage Guaranty Insurance Corporation, the nation’s third leading private mortgage insurer, turned positive second quarter profits, the first time it’s done so since 2010.
The company reported $12.4m during the second quarter compared with a $274m loss the same quarter a year ago.
Higher profit was due to more business being done and fewer losses on legacy loans. MGIC wrote approximately $8bn in new mortgage insurance policies compared to $5.9bn in the second quarter of 2012. Losses due to delinquent loans and insurance claims were $196m versus $551m the previous year.
Unlike many other mortgage insurance companies which were shut-down, put under conservatorship by their states and forbidden to do business, MGIC’s capital requirements were altered and then waived by the Office of Commissioner of Insurance of Wisconsin (OCI) until December 2013. MGIC is one of the six private mortgage insurance companies currently taking up market share today, including Radian Guaranty, United Guaranty (part of AIG), Genworth Financial, Essent Guaranty, and Republic Mortgage Insurance.