Mortgage Guaranty Insurance Corporation
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)(Learn how and when to remove this template message)
|Subsidiary of MGIC Investment Corporation|
|Headquarters||Milwaukee, Wisconsin, U.S.|
Russell 2000 Component
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.
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. In 1982, Karl sold the company to Baldwin United for $1.2 billion. In 1985, after Baldwin United filed for bankruptcy protection, MGIC was liquidated and its assets were sold to Northwestern Mutual for $775 million. Karl and others then set up a new company with the same name. In 1987, Bill Lacy was appointed chairman and chief executive officer of the company. Lacy died in 2016. In 1995, the founder of the company, Max H. Karl, died.
Subprime mortgage crisis and Great Recession
On 8 August 2007, MGIC announced it would discontinue its purchase of Radian Group after suffering a billion-dollar loss of its investment in Credit-Based Asset Servicing and Securitization (C-BASS, New York). Over the period from 2006 to 2017, MGIC stock fell more than 94 percent.
- Plunkett, jack (2007). Plunkett's Insurance Industry Almanac 2007. Houston, Texas: Plunkett Research, Ltd. ISBN 1-59392-405-4.
- QUINT, MICHAEL (April 20, 1995). "Max H. Karl, 85, Pioneer in Mortgage Insurance". The New York Times.
- BLUMSTEIN, MICHAEL (September 15, 1983). "BALDWIN TO SELL MGIC UNIT". The New York Times.
- Lippman, Thomas W. (February 23, 1982). "Baldwin-MGIC Deal Approved". The Washington Post.
- "Baldwin To Receive $715 Million". Chicago Tribune. January 14, 1985.
- "MGIC Mourns Former Chairman and CEO, William Lacy" (Press release). PRNewswire. August 29, 2016.
- MGIC May Abandon Radian, Forbes, 2007-08-10
- Milwaukee Journal-Sentinel, August 6, 2007
- "C-Bass LLC Retains the Blackstone Group" (PDF) (Press release). C-BASS. 2007-08-03.[permanent dead link]
- News, A. B. C. (2009-06-24). "CEOs Don't Want to Be Seen Playing Golf". ABC News. Retrieved 2017-05-02.
|This bank, insurance, or other financial services corporation article is a stub. You can help Wikipedia by expanding it.|