MGIC Investment Corp. (MTG)’s Fourth Quarter 2014 Earnings Call Trasncript

Page 8 of 15

Curt S. Culver – Chairman and CEO
I think the key here is just the flexibility that the company has to meet. If they come down as they initially proposed them and I don’t think they will, I think they’ll be more favorable to us when they do come out with the finals, but we have the flexibility without adding dilutive capital to this company to fill this void if that’s indeed what happens. So we’ve got a lot of alternatives available and you’ve suggested one which we’re aware of.

Q: Okay great, thank you.

Curt S. Culver – Chairman and CEO
Thank you.

Operator
Our next question comes from Mark Devries with Barclays. Your line is open.

Q: Yeah, thanks. Could you give us your thoughts on the probability that the FHFA will also look to reduce the loan level pricing adjustments and/or G fees?

Timothy J. Mattke – EVP and CFO
The probability of it happening?

Q: Yeah.

Timothy J. Mattke – EVP and CFO
I’m an optimist. So it has to be good when we work there, but I mean given the President’s reduction on FHA, to me that sounds as he’s going all in on the economy over the next two years and that to me would say he’s going to, I think we’ll see a positive, something positive out of FHFA on both the PMIERs as well as the loan level fees.

Patrick Sinks – President and COO
Yeah this is Pat. I would add, there is also, just like with the FHA price reduction there is a lot of pressure on the market from the MBA and lenders on the FHFA to reduce those fees also. So there is reason to be optimistic.

Q: Would you expect that to be coordinated with the, if they do anything, with the release of the finalization of the PMIERs?

Patrick Sinks – President and COO
That’s the indication they have given us, that the timing of the release of those should be relatively close.

Page 8 of 15