Mortgage Guaranty Insurance Corporation
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|Subsidiary of MGIC Investment Corporation|
|Headquarters||Milwaukee, Wisconsin, U.S.|
Mortgage Guaranty Insurance Corporation (a subsidiary of MGIC Investment Corporation) NYSE: MTG is a provider of private mortgage insurance in the United States. In addition to mortgage insurance, MGIC provides lenders with various underwriting and other services and products related to home mortgage lending.
The company is based in Milwaukee, Wisconsin, where it was founded in 1957 by Max H. Karl. He was a real estate attorney who noticed that his clients had trouble with paying for their new homes, and found that obtaining government-backed loan financing was difficult to obtain. Karl believed that there was a need for a company that could insure the top part of the mortgage rather than all of it. He secured $250,000 from investors, including friends and business associates, to open the new company.
Subprime mortgage crisis & Great Recession
On August 8, 2007 Mortgage Guaranty Insurance Corporation (MGIC, Milwaukee, Wisconsin) announces it will 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). Since 2006, MGIC stock has fallen more than 94 percent.
- Plunkett, jack (2007). Plunkett's Insurance Industry Almanac 2007. Houston, Texas: Plunkett Research, Ltd. ISBN 1-59392-405-4.
- 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.
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