MILWAUKEE, May 17, 2012 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) announced today that its Mortgage Guaranty Insurance Corporation subsidiary has filed a lawsuit in Federal District Court in Milwaukee, Wisconsin against Freddie Mac and the Federal Housing Finance Administration (Freddie Mac's conservator) regarding the pool insurance dispute between MGIC and Freddie Mac. The dispute has been described for some time in MGIC Investment's public disclosures, including on pages 16-17 of Investment's April 23, 2012 earnings release.
Investment said it would not comment on the suit beyond a communication it has sent to Freddie Mac, which said in part:
That we took the initiative in seeking to resolve our dispute through the judicial system does not mean we cannot seek to resolve it "out of court." Indeed, we welcome the opportunity to continue such discussions, but could not accept the terms on which Freddie Mac was willing to do so.
As Freddie Mac's largest mortgage insurance counterparty, we place the highest value on the long and fruitful relationship between our two companies. We trust our attempt to seek resolution of this dispute through litigation will not affect that relationship. From our perspective, we intend to conduct "business as usual" on the various matters between us and hope after due reflection Freddie Mac will concur this approach makes sense.
MGIC (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, is the nation's largest private mortgage insurer as measured by $169.0 billion primary insurance in force covering 1.1 million mortgages as of March 31, 2012. MGIC serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality.
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SOURCE MGIC Investment Corporation