MTG
- MGIC Investment Corporation
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Overview
Company Summary
MGIC Investment Corporation, commonly known as MGIC, is a leading provider of private mortgage insurance in the United States. The company operates as a holding company through its subsidiary Mortgage Guaranty Insurance Corporation (MGIC), which is the primary operating platform.
MGIC's core business is to provide mortgage insurance to lenders, enabling them to offer loans to homebuyers with down payments of less than 20% of the home's value. Mortgage insurance protects the lender against potential default by the borrower and covers a portion of the outstanding loan balance in case of foreclosure or delinquency.
As a mortgage insurer, MGIC evaluates and underwrites mortgage loans to determine their risk profile and sets premium rates accordingly. The premiums are typically paid by the borrower as a part of their monthly mortgage payment. In case of default, MGIC compensates the lender for the loss incurred, reducing the lender's financial risk.
Alongside mortgage insurance, MGIC also offers various support services to its customers, including underwriting support, risk management tools, and training programs. These services help lenders navigate the complexities of the mortgage industry and improve loan origination processes.
By providing mortgage insurance, MGIC plays a vital role in facilitating homeownership by reducing the lender's risk and making it possible for borrowers to secure loans with lower down payments. This helps to expand access to credit, particularly for first-time homebuyers who may not have substantial savings.
In summary, MGIC Investment Corporation operates as a leader in the private mortgage insurance market, protecting lenders from defaults and enabling borrowers to secure mortgage loans with a down payment of less than 20%.