New MGIC Biz In Limbo As Wis. Opposes Freddie Mac Rules

Law360, New York (August 2, 2012, 6:37 PM EDT) -- Mortgage insurer MGIC Investment Corp.'s plan to sell insurance through a spinoff company is in danger because Freddie Mac’s approval is contingent on some conditions that aren’t palatable to Wisconsin regulators, MGIC said Thursday.

J.P. Wieske, a spokesman for the Wisconsin Office of the Commissioner of Insurance, said Freddie Mac wants the office to agree not to act if the MGIC was ever to become insolvent, a condition the regulator objects to. He hastened to add there are no red flags right now to indicate that’s...
To view the full article, register now.