PR Newswire
MILWAUKEE, April 9, 2018
MILWAUKEE, April 9, 2018 /PRNewswire/ -- MGIC Investment Corporation's (NYSE: MTG) principal subsidiary, Mortgage Guaranty Insurance Corporation (MGIC), the nation's first private mortgage insurance company, announced reduced borrower-paid premium rates that reflect the lower corporate tax rate signed into law in 2017. By incorporating the tax benefit and allowing all lenders access to these reduced premium rates, MGIC believes that borrowers and lenders will be better served in their quest for affordable and sustainable low-down-payment lending solutions.
Borrower-paid mortgage insurance premium rates on the most popular premium plans have been reduced by an average of approximately 11%.
Patrick Sinks, CEO of MTG and MGIC said, "Over the last few months we've seen our competitors offer reduced borrower-paid premium rates to many, but not all, customers. Our decision to incorporate the new tax rate into our borrower-paid premiums allows all lenders and their borrowers to benefit from lower premiums."
Down payment remains the number one obstacle to homeownership and borrower-paid monthly premiums, because they are cancelable, are one of the most popular and affordable ways to overcome this obstacle.
Sinks added, "While we are lowering premium rates, MGIC will continue to have a strong capital position that protects policyholders while achieving returns for shareholders that are commensurate with the risk associated with low-down payment lending."
The new rates are effective June 4, 2018. A presentation with illustrative examples of the price changes can be found at https://mtg.mgic.com/events-and-presentations. Full details of the announcement and new premium rates will be posted by 6 p.m. ET today at https://www.mgic.com/rates.
About MGIC
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. At February 28, 2018, MGIC had $196.5 billion of primary insurance in force covering approximately one million mortgages.
From time to time MGIC Investment Corporation releases important information via postings on its corporate website, including corrections of previous disclosures, 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.
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Forward Looking Statements and Risk Factors
Our actual results could be affected by the risk factors below. These risk factors may also cause actual results to differ materially from the results contemplated by forward looking statements regarding our capital position and returns or other statements that may be forward looking statements in the foregoing press release. More detail about these risks may be found in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2017.
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SOURCE MGIC Investment Corporation
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