MGIC to offer stock

Posted by Steve Dalton / Category:

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"Mortgage insurer MGIC Investment Corp. announced that will offer 37.3 million shares in an attempt to raise about $420 million, according to an article in The International Herald Tribune. Any takers? That would seem to be a tough sell to investors in the current mortgage climate. With the skyrocketing default rate on mortgages, record number of foreclosures, and the steepest decline in house prices in more than 20 years, more mortgage holders are filing claims on their MGIC policies. The company had a 42% increase in payouts last year totaling $870 million dollars. It reported a loss of $1.67 billion." Read entire article