Freddie Threatens to Withhold MI Approval Unless MGIC Agrees to GSE’s Demands
August 9, 2012
Hardball conditions imposed by Freddie Mac in order to permit lenders to continue selling loans insured by Mortgage Guaranty Insurance Corp., over the objections of state regulators, has cast a cloud over MGIC’s already uncertain prospects. Fannie Mae has approved a new MGIC insurance entity that also has the backing of the insurance company’s home state regulator, the Office of the Commissioner of Wisconsin. But MGIC warned investors last week that Freddie’s Aug. 1 approval of the new unit is conditional and could be withdrawn at any time and ends Dec. 31, 2012. Freddie says it can and will pull...
Some SWFs in other countries have extensive ownership interests in major corporations and sweep much of their profits into state coffers.
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