Freddie Mac Mortgage Insurance Claims 'Illogical,' MGIC Says

Law360, New York (May 17, 2012, 12:45 PM EDT) -- Mortgage Guaranty Insurance Corp. slapped Freddie Mac with a lawsuit Wednesday in Wisconsin federal court, claiming the government-backed housing giant was seeking billions of dollars in mortgage loan insurance through an "entirely illogical" contract interpretation.

MGIC alleges Freddie Mac breached the terms of a mortgage insurance agreement by overstating MGIC’s aggregate loss limit, a measurement of risk for pooled mortgage policies that MGIC issued to Freddie Mac. A high aggregate loss limit would require MGIC to set aside large amounts of capital and limit how much...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Mortgage Guaranty Insurance Corporation v. Federal Housing Finance Administration et al


Case Number

2:12-cv-00487

Court

Wisconsin Eastern

Nature of Suit

Insurance

Judge

Lynn Adelman

Date Filed

May 16, 2012

Law Firms

Companies

Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.