Mortgage Guaranty Insurance Corp.s hopes for a business as usual relationship with Freddie Mac despite the mortgage insurers recent lawsuit against the GSE over a pool insurance dispute appears to be wishful thinking after Freddie has counter-punched with litigation of its own, claiming breach of contract and seeking punitive damages. Two weeks ago MGIC filed suit against Freddie and the GSEs regulator, the Federal Housing Finance Agency, in the U.S. District Court Eastern District of Wisconsin, Milwaukee division, where the MI is based.