Portfolio Supplement Q4 NYSE: MTG
Summary of Loan Modification and HARP Activity Risk in Force Primary Book Risk in Force Primary Book Risk in Force 2007 Primary Book HARP/RTM: 8% HAMP & Other Mods: 7% HARP/RTM: 8% HAMP & Other Mods: 5% HARP/ RTM: 45% HAMP & Other Mods: 30% % Current at 12/31/ (# of loans) 96.8% 75.6% % Current at 12/31/ (# of loans) 96.8% 76.1% % Current at 12/31/ (# of loans) 96.3% 76.5% HARP/RTM HAMP & Other Mods HARP/RTM HAMP & Other Mods HARP/RTM HAMP & Other Mods 2
Original LTV 1.0% 4.9% 28.3% 52.0% 13.8% 1.2% 4.7% 29.1% 50.4% 14.5% 4.4% 28.2% 53.6% 13.8% 4.2% 29.0% 52.4% 14.4% 80 and < 80.01-85 85.01-90 90.01-95 95.01-100 Note: Charts may not add to 100% due to rounding. 3
Original FICO 9.5% 14.2% 24.7% 51.6% 11.3% 15.1% 24.3% 49.3% 6.9% 14.2% 25.4% 53.5% 8.3% 15.0% 25.2% 51.5% 659 and < 660-699 700-739 740 and > Refer to pages 13 and 14 of this supplement for Original FICO by Origination Year information. Note: Charts may not add to 100% due to rounding. 4
Loan Amount 1.0% 1.4% 5.4% 29.8% 30.8% 31.5% 1.1% 1.3% 6.2% 32.1% 30.9% 28.5% 0.6% 1.2% 5.1% 29.7% 31.2% 32.1% 0.6% 1.0% 5.9% 32.1% 31.3% 29.1% 100k and < 101-200k 201-300k 301k - Conf Conf - 500k 500k and > Note: Charts may not add to 100% due to rounding. 5
Loan Type 96.9% 1.3% 96.0% 1.7% 98.1% 1.0% 97.5% 1.3% FRM FRM I/O ARM I/O* Option ARM* ARM* *ARM I/O, Option ARM, and ARM are each individually less than 2% for and in both periods presented. Note: Charts may not add to 100% due to rounding. FRM includes ARMs with initial reset periods of greater than 5 years, ARM I/O includes all ARMs regardless of reset period. 6
Loan Purpose 83.9% 12.1% 4.0% 81.0% 13.9% 5.1% 86.0% 12.4% 1.6% 83.5% 14.3% 2.2% Purchase Refinance Refinance Equity Note: Charts may not add to 100% due to rounding. 7
Property Type 87.6% 11.7% 87.6% 11.7% 87.6% 11.7% 87.5% 11.7% Single Family Detached Condo/Townhouse/Other Attached Coop/Other (< 1%) Note: Charts may not add to 100% due to rounding. 8
Occupancy 97.3% 2.0% 97.1% 2.1% 97.4% 2.0% 97.2% 2.1% Owner 2nd Home Investor (< 1%) Note: Charts may not add to 100% due to rounding. 9
Documentation 97.6% 2.0% 96.9% 2.5% 98.9% 0.8% 98.4% 1.1% Full Stated No Doc (< 1%) Note: In accordance with industry practice, loans approved by GSE and other automated underwriting (AU) systems under "doc waiver" programs that did not require verification of borrower income are classified by MGIC as "full documentation." Based in part on information provided by the GSEs, MGIC estimates full documentation loans of this type were approximately 4% of 2007 NIW. Information for other periods is not available. MGIC understands these AU systems granted such doc waivers for loans they judge to have higher credit quality. MGIC also understands that the GSEs terminated their "doc waiver" programs in the second half of 2008. Note: Charts may not add to 100% due to rounding. 10
25% 22.6% 20.8% 25% 23.7% 21.8% 20% 20% 15% 15.0% 15% 15.7% 10% 8.6% 8.7% 10% 9.0% 7.9% 5% 5.5% 3.5% 1.1% 0.6% 0.6% 3.9% 4.2% 2.4% 2.6% 5% 5.8% 3.7% 1.1% 0.6% 0.6% 4.1% 3.0% 1.6% 1.5% 0% 0% 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 and Prior 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 and Prior Year of Origination Year of Origination 12/31/ 12/31/ (% labeled) 12/31/ 12/31/ (% labeled) Note: Charts may not add to 100% due to rounding. Year of origination as displayed is determined by the calendar date the insurance was effective. 11
10% 10% 8% 8.4% 8% 8.1% 6% 6.9% 6.2% 5.3% 6% 6.6% 6.2% 5.4% % RIF 4.6% 4.3% % RIF 4.7% 4.3% 4% 3.4% 3.3% 3.3% 3.1% 4% 3.5% 3.3% 3.3% 3.2% 2% 2% 0% 0% CA FL TX PA OH IL MI GA VA NY CA FL TX PA OH IL MI GA VA MN 12
ORIGINATION YEAR 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 and prior Original risk written (billions) $11.7 $11.9 $10.8 $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 96.8 88.3 69.9 49.4 37.4 28.8 15.2 9.3 7.2 18.6 21.7 13.1 7.2 0.7 Weighted average FICO (1) 745 746 743 742 750 757 754 751 746 722 696 675 672 660 740 and > (%) 58.7 59.2 57.1 55.5 63.1 70.0 67.0 63.1 57.9 39.2 25.8 19.1 17.1 11.9 700-739 (%) 26.2 25.8 25.7 26.5 25.2 22.7 24.9 26.8 30.2 28.3 21.9 17.8 17.6 14.7 660-699 (%) 12.0 12.0 13.5 14.4 10.6 7.2 8.1 10.0 10.6 21.2 22.7 20.3 20.9 21.7 659 and < (%) 3.2 2.9 3.6 3.7 1.1 0.1 0.1 1.3 11.3 29.6 42.8 44.4 51.7 Weighted average LTV (1) 92.8 92.5 92.8 93.0 93.2 93.2 93.1 93.4 92.2 93.7 95.6 93.6 92.5 89.8 85 and < (%) 6.1 6.4 4.4 3.5 1.5 0.6 0.3 0.6 5.8 3.3 3.9 12.5 15.0 27.3 85.01-90.00 (%) 28.1 29.8 29.6 27.5 27.8 29.0 31.6 23.9 33.6 32.1 21.0 26.1 31.0 29.7 90.01-95.00 (%) 54.0 57.0 60.8 67.0 63.9 65.2 64.2 73.5 58.4 39.5 25.2 21.7 22.9 24.8 95.01 and > (%) 11.8 6.8 5.2 2.0 6.8 5.3 3.9 2.0 2.3 25.1 50.0 39.7 31.1 18.2 Single premium (%) 18.6 19.4 21.3 18.3 15.0 17.2 13.3 7.8 16.1 27.3 19.4 12.0 10.3 5.9 Investor (%) 0.2 0.1 0.1 1.6 1.9 2.8 4.1 6.4 DTI > 50% (%) 0.9 0.7 0.7 0.6 0.1 0.8 22.6 27.3 18.2 14.2 9.9 Cashout refinances (%) 0.1 0.1 0.1 0.6 0.2 1.6 6.3 11.3 25.5 30.0 31.8 Full documentation (%) 100 100 100 100 100 100 100 100 100 98.4 90.8 82.2 84.4 84.4 HARP (%) 0.1 0.2 37.2 56.6 41.3 30.0 26.7 15.7 Delinquency statistics: Risk in force delinquent (%) 0.5 1.1 1.5 2.1 1.7 1.5 2.2 3.0 4.3 7.9 13.5 17.8 19.2 20.7 # of loans delinquent 955 1,930 1,992 1,757 957 549 266 199 315 3,455 12,807 7,719 4,916 8,739 Delinquency rate (based on loan count) (%) 0.5 1.0 1.4 2.0 1.7 1.6 2.2 3.0 3.9 7.5 12.1 14.6 15.5 16.9 # of new notices received in quarter 1,137 1,876 1,735 1,356 704 414 177 93 148 1,642 5,387 3,159 1,925 3,163 New notices previously delinquent (%) 4.0 11.9 25.4 34.1 32.5 36.7 39.5 58.1 59.5 74.1 83.4 82.8 88.3 93.2 Loans remaining never reported delinquent (%) 99.3 98.4 97.4 95.9 96.2 96.4 94.3 91.3 86.7 68.9 51.7 45.6 43.5 38.7 Ever to date claims paid (millions) $ $0.3 $3.3 $7.8 $8.7 $7.8 $9.2 $16.3 $62.0 $1,107.1 $5,121.5 $3,871.9 $2,634.7 N.M. Year of origination as displayed is determined by the calendar date the insurance was effective. Percentages based on remaining risk in force, including the percentage of risk in force delinquent. Other delinquency statistics are based on the number of remaining loans. (1) At time of origination 13
ORIGINATION YEAR 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 and prior Original risk written (billions) $11.7 $11.9 $10.8 $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 96.8 88.3 69.9 49.4 37.4 28.8 15.2 9.3 7.2 18.8 21.1 14.2 7.7 0.5 Weighted average FICO (1) 745 746 743 742 750 757 754 751 746 722 697 697 698 683 740 and > (%) 58.7 59.2 57.1 55.5 63.1 70.0 67.0 63.1 57.9 39.0 25.5 25.4 24.7 17.8 700-739 (%) 26.2 25.8 25.7 26.5 25.2 22.7 24.9 26.8 30.2 28.3 22.5 22.5 23.5 19.5 660-699 (%) 12.0 12.0 13.5 14.4 10.6 7.2 8.1 10.0 10.6 21.3 23.9 23.1 23.7 25.4 659 and < (%) 3.2 2.9 3.6 3.7 1.1 0.1 0.1 1.3 11.4 28.1 29.0 28.1 37.2 Weighted average LTV (1) 92.8 92.5 92.8 93.0 93.2 93.2 93.1 93.4 92.2 93.7 95.9 95.8 95.3 94.1 85 and < (%) 6.1 6.4 4.4 3.5 1.5 0.6 0.3 0.6 5.8 3.4 2.1 2.1 2.1 4.1 85.01-90.00 (%) 28.1 29.8 29.6 27.5 27.8 29.0 31.6 23.9 33.6 32.3 20.7 23.7 26.7 28.3 90.01-95.00 (%) 54.0 57.0 60.8 67.0 63.9 65.2 64.2 73.5 58.4 39.8 25.5 22.6 26.3 36.6 95.01 and > (%) 11.8 6.8 5.2 2.0 6.8 5.3 3.9 2.0 2.3 24.6 51.7 51.6 44.9 31.0 Single premium (%) 18.6 19.4 21.3 18.3 15.0 17.2 13.3 7.8 16.1 27.5 15.9 16.2 15.8 10.5 Investor (%) 0.2 0.1 0.1 1.6 2.0 2.5 4.2 7.1 DTI > 50% (%) 0.9 0.7 0.7 0.6 0.1 0.8 22.8 29.8 22.8 18.7 13.6 Cashout refinances (%) 0.1 0.1 0.1 0.6 0.2 1.6 6.3 8.0 9.7 9.9 7.5 Full documentation (%) 100 100 100 100 100 100 100 100 100 98.4 92.7 91.2 92.8 92.4 HARP (%) 0.1 0.2 37.2 57.1 46.0 43.6 41.1 28.1 Delinquency statistics: Risk in force delinquent (%) 0.5 1.1 1.5 2.1 1.7 1.5 2.2 3.0 4.3 8.0 13.0 13.6 14.6 19.8 # of loans delinquent 955 1,930 1,992 1,757 957 549 266 199 315 3,438 11,142 4,905 2,899 4,487 Delinquency rate (based on loan count) (%) 0.5 1.0 1.4 2.0 1.7 1.6 2.2 3.0 3.9 7.5 11.9 12.0 12.6 15.2 # of new notices received in quarter 1,137 1,876 1,735 1,356 704 414 177 93 148 1,629 4,863 2,172 1,302 1,649 New notices previously delinquent (%) 4.0 11.9 25.4 34.1 32.5 36.7 39.5 58.1 59.5 74.4 82.8 82.8 84.5 91.5 Loans remaining never reported delinquent (%) 99.3 98.4 97.4 95.9 96.2 96.4 94.3 91.3 86.7 68.8 52.3 53.4 53.0 47.0 Ever to date claims paid (millions) $ $0.3 $3.3 $7.8 $8.7 $7.8 $9.2 $16.3 $62.0 $1,100.9 $4,524.9 $2,170.7 $1,491.7 N.M. Year of origination as displayed is determined by the calendar date the insurance was effective. Percentages based on remaining risk in force, including the percentage of risk in force delinquent. Other delinquency statistics are based on the number of remaining loans. (1) At time of origination 14
Static Pool Delinquency Rates Based on Loan Count 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Impact of hurricane activity on static pool delinquency rates: Hurricane activity primarily impacting Puerto Rico, Texas and Florida during the third quarter of has resulted in an increased number of delinquent loans in most annual periods as of, when compared to one quarter prior. Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19 Q21 Q23 Q25 Q27 Q29 Q31 Q33 Q35 Ending Primary Default Inventory 18% 15% 12% 9% 6% 3% 2009 2010 2011 2012 2013 2014 2015 Primary Default Inventory 50,000 40,000 30,000 20,000 10,000 0 41,235 6,144 5,518 43,816 8,987 4,549 3,394 46,900 12,626 4,525 4,350 46,556 12,446 4,723 35,091 34,829 34,274 34,110 1,375 Sep '17 Oct. '17 Nov. '17 Dec. '17 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Primary New Notices 0% Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19 Q21 Q23 Q25 Q27 Q29 Q31 Q33 Q35 Q37 Q39 Q41 Q43 Default inventory - excl. IADA Default inventory - IADA 2007 2008 New notices - excl. IADA New notices - IADA Hurricane impacted areas are locations that the Federal Emergency Management Agency has declared Individual Assistance Disaster Areas ("IADA") Static Pool Delinquency Rates = (total number of delinquent loans at the end of the stated reporting period) / (original number of loans insured in the annual periods shown) 15