Mortgage Guaranty Insurance Corporation

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Mortgage Guaranty Insurance Corporation
Subsidiary of MGIC Investment Corporation
Headquarters Milwaukee, Wisconsin, U.S.
Website www.mgic.com
MGIC Investment Corporation
Traded as NYSEMTG
Russell 2000 Component
Website www.mgic.com

Mortgage Guaranty Insurance Corporation (a subsidiary of MGIC Investment Corporation) NYSEMTG is a provider of private mortgage insurance in the United States.[1]

The company is based in Milwaukee, Wisconsin. In addition to mortgage insurance, MGIC provides lenders with various underwriting and other services and products related to home mortgage lending.[citation needed]

History[edit]

In 1957, the company was founded by Max H. Karl, a real estate attorney who noticed that his clients were having trouble paying for their new homes. He secured US$250,000 from investors, including friends and business associates, to open the new company.[2] In 1982, Karl sold the company to Baldwin United for $1.2 billion.[3][4] In 1985, after Baldwin United filed for bankruptcy protection, MGIC was liquidated and its assets were sold to Northwestern Mutual for $775 million.[5] Karl and others then set up a new company with the same name.[2] In 1987, Bill Lacy was appointed chairman and chief executive officer of the company. Lacy died in 2016.[6] In 1995, the founder of the company, Max H. Karl, died.[2]

Subprime mortgage crisis and Great Recession[edit]

On 8 August 2007, MGIC announced it would discontinue its purchase of Radian Group[7] after suffering a billion-dollar loss[8] of its investment in Credit-Based Asset Servicing and Securitization (C-BASS, New York).[9] Over the period from 2006 to 2017, MGIC stock fell more than 94 percent.[10][11]

Honors[edit]

Mortgage Guaranty Insurance Corporation has been named a "Top Workplace" by the Milwaukee Journal Sentinel every year since 2010.[12]

See also[edit]

References[edit]

  1. ^ Plunkett, jack (2007). Plunkett's Insurance Industry Almanac 2007. Houston, Texas: Plunkett Research, Ltd. ISBN 1-59392-405-4. 
  2. ^ a b c QUINT, MICHAEL (April 20, 1995). "Max H. Karl, 85, Pioneer in Mortgage Insurance". The New York Times. 
  3. ^ BLUMSTEIN, MICHAEL (September 15, 1983). "BALDWIN TO SELL MGIC UNIT". The New York Times. 
  4. ^ Lippman, Thomas W. (February 23, 1982). "Baldwin-MGIC Deal Approved". The Washington Post. 
  5. ^ "Baldwin To Receive $715 Million". Chicago Tribune. January 14, 1985. 
  6. ^ "MGIC Mourns Former Chairman and CEO, William Lacy" (Press release). PRNewswire. August 29, 2016. 
  7. ^ MGIC May Abandon Radian, Forbes, 2007-08-10
  8. ^ Milwaukee Journal-Sentinel, August 6, 2007
  9. ^ "C-Bass LLC Retains the Blackstone Group" (PDF) (Press release). C-BASS. 2007-08-03. [permanent dead link]
  10. ^ News, A. B. C. (2009-06-24). "CEOs Don't Want to Be Seen Playing Golf". ABC News. Retrieved 2017-05-02. 
  11. ^ https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWOIFnYKjkIU
  12. ^ http://www.topworkplaces.com/frontend.php/regional-list/company/jsonline/mgic-investment-corp

External links[edit]