Mortgage Insurer MGIC Files Suit Against Freddie Mac and FHFA

MGIC Investment Corporation has announced that its Mortgage Guaranty Insurance Corporation subsidiary has filed a lawsuit in Federal District Court in Milwaukee, Wis. against Freddie Mac and the Federal Housing Finance Administration (FHFA) regarding the pool insurance dispute between MGIC and Freddie Mac. The dispute has been described for some time in MGIC Investment’s public disclosures. MGIC said it would not comment on the suit beyond a communication it has sent to Freddie Mac, which said in part: That we took the initiative in seeking to resolve our dispute through the judicial system does not mean we cannot seek to resolve it “out of court.” Indeed, we welcome the opportunity to continue such discussions, but could not accept the terms on which Freddie Mac was willing to do so. MGIC intends to conduct “business as usual” on the various matters between themselves and the FHFA, and the company hopes that after due reflection, Freddie Mac will concur their approach makes sense.