MGIC Investment Corp. led a mortgage insurer slump after the company swung to a loss as fewer borrowers caught up on overdue loans.MGIC, the largest U.S. mortgage insurer, dropped 55 cents, or 9.2 percent, to $5.45 in New York Stock Exchange composite trading at 9:30 a.m. No. 2 Radian Group Inc. fell 2.7 percent and PMI Group Inc. dropped 5.5 percent.

MGIC pays lenders when homeowners default and foreclosure fails to recoup costs, and losses swelled as the housing market slumped. The Milwaukee-based insurer today reported a net loss of $151.7 million, or 75 cents a share, in the three months ended June 30, its 15th unprofitable period in 16 quarters.

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