sounds like mtg was in the wrong on the pool deals
mtg is agreeing to pay something upfront, and more over four years, must be a pretty big amount, my guess is at least $300m, $100M upfront + $50m a year for four years, something like that, if they amount was $100M or less, mtg would just pay it up front and get it over with, but it must be big enough they can't afford to pay it all at once, as i said before, mtg will live to die another day, eventually the losses will get them, but freddie will let them live for now so they can maximize their take from mtg.
1. Why would they pay upfront if they have the option to defer over time?
2. They're not 'paying' $100m upfront. They're contributing it. It will be used for payment but as far as the legality of it, it's just shoring up capital and will be used for said defered payments.
3. What is your guessed based on? Even before FM lowered the capital requirement, there was no reason to think costs would be that high. How can you argue that it would now be that large after FM allowed them to contribute just a vastly smaller about of capital?
wintermutev04 - they pay something upfront. And it can be 100 milions. It can be 200 miliions and it can be 50 milions. Nobody knows yet as nothing was inked.
"the majority of these payments to Freddie Mac will be made over a period of four years after the signing of the definitive agreement, with the remainder to be paid AT SIGNING. "
As your name implies, you are paid to bash this stock and other stocks. You know nothing and you are paid to make this stock look bad. It is GREAT news for MTG and even if they agreed to pay them 150M they would have tried to negotiate to pay it as slowly as possible. MTG directors are paid to do what is best for the company. You are paid to bash. You know nothing! Period.