Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Nye Lavalle

Here you go Gary!


Fitch Keeps Eye on MGIC after Q2 Loss

By JON PRIOR 
July 17, 2009 10:04 AM CST

Fitch Ratings downgraded the insurer financial strength (IFS) rating of Mortgage Guaranty Insurance Corp. (MGIC) to triple-B minus from triple-B after the company reported a $339.8m loss for Q209.

The long-term debt and senior debt ratings of its parent company MGIC Investment Corp. landed on Fitch’s Rating Watch Negative, but the insurance giant down-streamed $500m of capital to a new subsidiary, MGIC Indemnity, with the goal of continuing to write mortgage insurance, according to a release from Fitch.

“The capital restructuring allows the company to continue to operate and seek to earn a higher return on a portion of its capital than would otherwise be the case,” according to the release.

The Wisconsin Office of the Commissioner of Insurance (WI OCI), MGIC’s main regulator, approved the restructuring as an alternative to ceasing operations, according to the release.

Curt Culver, the CEO of MGIC Investment Corp. said a corporate statement that “the company’s financial results continue to be adversely impacted by increased delinquencies, which are occurring due to a weakened economy, increased unemployment and lower home prices.”

According to Fitch’s report, the diversion of capital into MG Indemnity places “MGIC’s existing legacy book of business into de facto runoff.”

Fitch claimed that the MGIC group will need to perform on MGIC’s claims to protect MG Idemnity’s value. The restructuring is still pending approval from government-sponsored entities – the main beneficiaries of MGIC’s insurance.

“Positively, the restructuring allows the MGIC group to avoid a risk-to-capital driven cessation of operations, and to underwrite potentially high quality business at attractive rates,” according to Fitch’s release.

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Thanks Nye, I'm watching them here in Milwaukee, they are bailing from the market and changing the name, and spending a Billion Dollars to start a new entity,  Some time ago, I made a suggestion on changing their policies, and going in this direction,
 
If they do not get approval in every state to sell the new policy's under the new entity, they will have a huge problem, if they succeed, they most likely file chapter 11 or just close down the current leaving millions without insurance they have sold.  Its a very risky move with Billion Dollars should they fail in getting approval for their now policies under the new entity being formed.
 
In other words, it looks like MGIC is going under, and its "Capital" is being moved to the new entity, they roughly 14 month window by closing the existing programs, and selling the entity!  
 
By the way, I just named Curt Culver (CEO of MGIC, and their General Counsel Jeffery Lane) as potential witness's in my case! 
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