Bose George's questions to MGIC Investment Corp (MTG) leadership • Q4 2024
Question
Bose George questioned the trend of higher debt-to-income (DTI) ratios in recent originations and asked for the ultimate claim rate on the recently cured 2023 and 2024 notices.
Answer
CEO Timothy Mattke attributed higher DTIs to housing affordability pressures, noting that strong offsetting credit characteristics and risk-based pricing mitigate the risk. CFO Nathaniel Colson clarified that for new notices received in 2023, the ultimate claim rate expectation is now 3-5%, down from the initial 7.5%, and for more seasoned 2021-2022 notices, it is even lower at 1-3%.