Freddie Mac, MGIC Reach $267M Deal In Pool Policy Fight

Law360, New York (November 9, 2012, 7:14 PM EST) -- Mortgage insurer MGIC Investment Corp. said Friday that it will pay Freddie Mac $267 million to settle a pool insurance dispute as part of a deal that will allow it to continue to sell insurance in the U.S.

MGIC had been fighting with Freddie Mac over what it said was an overstated 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...
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