Mgic Investment Corporation · NYSE:MTG
Mgic Investment — Q4 2015 Earnings Presentation
15 slides from Mgic Investment's earnings presentation, Apr 15, 2016
Slide 1: Portfolio Supplement Q4 2015 (Revised Presentation)
Exhibit 99.1 Portfolio Supplement Q4 2015 (Revised Presentation) NYSE: MTG The information in this document does not include our Australian operations, which are immaterial.
Slide 2: Summary of Loan Modification and HARP Activity
Summary of Loan Modification and HARP Activity Risk in Force Risk in Force Risk in Force Total Primary Book Flow Primary Book 2007 Flow Primary Book HARP/RTM: 13% HARP/RTM: 13% HAMP: 5% HAMP: 7% Other HARP/ Other Mods: 2% RTM: Mods: 4% 40% Other Mods: 8% HAMP: 19% % Current at 12/31/2015 % Current a
Slide 3: Primary Risk in Force: Original LTV
Primary Risk in Force December 31, Original LTV Total 2015 1.5% 4.5% 29.8% 48.0% 16.2% 2014 1.8% 4.6% 30.4% 44.5% 18.7% 0% 50% 100% Flow 2015 3.8% 29.8% 50.1% 16.2% 2014 3.7% 30.4% 46.9% 19.0% 0% 50% 100% 80 and < 80.01-85 85.01-90 90.01-95 95.01-100 3 Note: Charts may not add to 100% due to roundin
Slide 4: Primary Risk in Force: Original FICO
Primary Risk in Force December 31, Original FICO Total 2015 13.2% 15.8% 23.8% 47.2% 2014 15.2% 16.0% 23.2% 45.6% 0% 50% 100% Flow 2015 9.7% 15.7% 24.8% 49.8% 2014 11.1% 16.0% 24.3% 48.6% 0% 50% 100% 659 and < 660 - 699 700 - 739 740 and > Refer to pages 13 and 14 of this supplement for Original FICO
Slide 5: Primary Risk in Force: Loan Amount
Primary Risk in Force December 31, Loan Amount Total 1.2% 2015 7.0% 33.9% 30.7% 26.1% 2.0% 2014 7.9% 35.3% 29.9% 22.6% 2.3% 0% 50% 100% Flow 2015 6.6% 34.0% 31.2% 26.7% 1.6% 1.7% 2014 7.5% 35.6% 30.5% 23.2% 0% 50% 100% 100k and < 101 - 200k 201 - 300k 301k - Conf Conf - 500k 500k and > 5 Note: Chart
Slide 6: Primary Risk in Force: Loan Type
Primary Risk in Force December 31, Loan Type Total 2015 95.0% 2.0% 2014 93.8% 2.3% 0% 50% 100% Flow 2015 96.8% 1.6% 2014 95.9% 1.9% 0% 50% 100% FRM FRM I/O ARM I/O* Option ARM* ARM* *ARM I/O, Option ARM, and ARM are each individually less than 2% for Total and Flow in both periods presented. Note: C
Slide 7: Primary Risk in Force: Loan Purpose
Primary Risk in Force December 31, Loan Purpose Total 2015 79.2% 14.5% 6.4% 2014 76.8% 15.4% 7.8% 0% 50% 100% Flow 2015 82.1% 14.9% 2.9% 2014 80.2% 16.1% 3.7% 0% 50% 100% Purchase Refinance Refinance Equity 7 Note: Charts may not add to 100% due to rounding.
Slide 8: Primary Risk in Force: Property Type
Primary Risk in Force December 31, Property Type Total 2015 87.4% 11.9% 2014 87.0% 12.3% 0% 50% 100% Flow 2015 87.3% 12.0% 2014 87.0% 12.3% 0% 50% 100% Single Family Detached Condo/Townhouse/Other Attached Coop/Other (1% or less) 8 Note: Charts may not add to 100% due to rounding.
Slide 9: Primary Risk in Force: Occupancy
Primary Risk in Force December 31, Occupancy Total 2015 96.8% 2.2% 2014 96.4% 2.3% 0% 50% 100% Flow 2015 96.9% 2.2% 2014 96.6% 2.3% 0% 50% 100% Owner 2nd Home Investor (2% or less) 9 Note: Charts may not add to 100% due to rounding.
Slide 10: Primary Risk in Force: Documentation
Primary Risk in Force December 31, Documentation Total 2015 96.1% 3.1% 2014 95.2% 3.8% 0% 50% 100% Flow 2015 97.9% 1.5% 2014 97.3% 1.9% 0% 50% 100% Full Stated No Doc (1% or less) Note: Charts may not add to 100% due to rounding. In accordance with industry practice, loans approved by GSE and other
Slide 11: Primary Risk in Force by Year of Origination
Primary Risk in Force December 31, Total Flow 25% 25% 23.8% 22.2% 20% 20% 17.3% 16.1% 14.0% 15% 15% 13.4% 12.0% 11.2% 10% 10% 7.8% 7.6% 7.3% 7.2% 6.8% 5.2% 4.3% 4.9% 5% 2.6% 5% 2.7% 3.3% 3.3% 1.7% 1.7% 1.8% 1.8% 0% 0% 2011 2011 2015 2014 2013 2012 2010 2009 2008 2007 2006 2005 2004 and Prior 2015 20
Slide 12: Primary Risk in Force by State, December 31, 2015
Primary Risk in Force December 31, 2015 Total Flow 7.8% 8% 8% 7.4% 6.3% 6.3% 6.3% 5.8% 6% 6% 5.2% 5.3% 4.8% 4.9% 4.1% 4.1% % RIF % RIF 3.7% 3.8% 4% 4% 3.4% 3.3% 3.3% 3.3% 3.3% 3.3% 2% 2% 0% 0% CA FL TX PA OH IL MI NY GA WA CA TX FL PA OH IL MI WA GA WI 12
Slide 13: Primary Risk in Force: Total by Origination Year
Primary Risk in Force December 31, 2015 TOTAL: ORIGINATION YEAR 2004 & 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Prior Original risk written (billions) $10.4 $8.7 $7.4 $6.1 $3.5 $3.1 $4.0 $10.7 $20.1 $16.1 $16.8 $181.5 % of original risk remaining 97.6 83.8 68.5 54.1 32.7 24.7 19.4 30.6
Slide 14: Primary Risk in Force: Flow by Origination Year
Primary Risk in Force December 31, 2015 FLOW: ORIGINATION YEAR 2004 & 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Prior Original risk written (billions) $10.4 $8.7 $7.4 $6.1 $3.5 $3.1 $4.0 $10.5 $18.1 $10.1 $10.2 $152.4 % of original risk remaining 97.7 83.8 68.5 54.1 32.8 24.9 19.3 30.9
Slide 15: Flow Static Pool Delinquency Rates Based on Loan Count
Flow Primary Risk in Force December 31, 2015 Static Pool Delinquency Rates Based on Loan Count 1.2% 0.60% 1.0% 0.8% 0.50% 0.6% 0.4% 0.2% 0.40% 0.0% Q1 Q4 Q7 Q10 Q13 Q16 Q19 Q22 Q25 Q28 0.30% 1H 2009 2H 2009 1H 2010 2H 2010 0.20% 0.10% 18% 15% 0.00% Q11 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q12 Q13 Q14 Q15