by Calculated Risk on 1/22/2008 07:17:00 PM

Update: For additional details see Housing Wire: MGIC: Q4 Paid Losses Pegged at $1.3 Billion

Private mortgage insurer MGIC Investment Corporation provided an investor update today:

MGIC Investment Corporation announced today that year-end 2007 delinquency inventory was 107,120 loans, an increase of approximately 16,000 loans from the end of the third quarter. Cure rates have continued to deteriorate, resulting in a higher percentage of delinquent loans that become claims, and average claim size has also continued to increase. As a result, the Company expects incurred losses for the fourth quarter of 2007 to approximate $1.3 billion. The Company said its insurance in force at year-end 2007 was $211.7 billion.

The Company also said it is increasing its paid loss forecast for 2008 to $1.8 - $2.0 billion.

During the fourth quarter, the Company made a decision to stop writing the portion of its bulk business that insures loans which are included in Wall Street securitizations.
emphasis added

For a discussion on private mortgage insurance, see Tanta's UberNerd posts:

Private Mortgage Insurance I

Private Mortgage Insurance II