MADISON, WI (WTAQ) - Slowly but surely, Wisconsin’s largest mortgage insurer is getting out of its financial doldrums.
MGIC lost $1.7 billion in 2007, as the Great Recession was just starting to do a number on the housing industry.
The company ended up paying billions of dollars in insurance settlements, as the mortgages they insured went into foreclosure.
Even last year, as the housing market showed major signs of recovery, MGIC lost $927 million. But now, more folks are buying the company’s stock, as shares have risen by 85 percent this year over last.
Also, MGIC took in another $1.1 billion in capital just last week, by selling more common stock and notes. Experts say MGIC still faces a lot of hurdles, as it deals with what it insured in 2008 and earlier – but those policies now make up just a third of the company’s business.