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

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, Mortgage Guaranty Insurance Corporation (MGIC, Milwaukee, Wisconsin) 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. 
  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

Bibliography[edit]

External links[edit]