Freddie, MGIC Near Resolution on Pool Insurance Dispute; MIs Sign Short-Sale Agreement with GSEs
November 8, 2012
MGIC Investment Corp. announced last week it has reached a tentative agreement with Freddie Mac on substantially all terms of a settlement of a simmering and prolonged dispute over pool insurance between the mortgage insurer and the government-sponsored enterprise. If MGIC and Freddie are able to agree on matters significant to final resolution involving payments to be made to the GSE, it would resolve a coverage dispute that threatened to prevent the MI from backing some loans. The principal economic terms concerning the amount of payments in settlement of MGICs obligations under the policies at issue have been...