Private mortgage insurer, MGIC Investment Corp. (MTG) has announced its intention to expand its sales team by appointing industry veterans in the capacity of the company’s new sales manager and account manager.
The news propelled the company’s shares rise 3.2% in yesterday’s trading session, closing at $7.81, with 8.2 million shares exchanging hands.
Jim Labbe, with 14 years of experience in this industry, will take on the role of the new sales manager at MGIC Investment. He will be responsible for working with the company’s customers and Account Managers in California and Nevada.
David Exner, with more than 15 years of experience in the mortgage finance industry, has been appointed as the new account manager. He has been entrusted the company’s prized customers in the city of Chicago.
Other Recent Appointments
Faced with changing fundamentals, the company has been actively appointing executives of late. In July, the company promoted Patrick Sinks – the current chief operating officer – to take on the role of chief executive officer effective Mar 1, 2015. Current CEO Curt Culver will relinquish the chair in 2015 to take up his responsibilities as non-executive chairman. The changes were announced following the release of the draft regarding new capital requirements by the Federal Housing Finance Agency (:FHFA).
Additionally, in June, MGIC Investment appointed two specialists from the mortgage industry – William Todd Pittman and Geoffrey Cooper – to develop the overall business of the company, as management expects demand for private mortgage to improve going forward owing to a rebounding housing market.
MGIC Market Share Picking Up
MGIC Investment experienced an upswing in its market share through the first half of 2014. MGIC Investment has witnessed an increase in business activity with primary new insurance written at the company totaling $29.8 billion in 2013, up from $24.1 billion in 2012 and $14.2 billion in 2011. Notably, the downside in business activity had been persisting since 2006 when the subprime crisis hit it hard.
The recovery was attributable to larger origination volume as well as an increase in the private mortgage insurance industry’s market share. The expansion in the sales team is naturally targeted toward maintaining this healthy trend.
Management at MGIC Investment is encouraged by growing demand for home purchases.The current market structure presents a good opportunity for stronger players which have a sturdy capital position and can tolerate regulation. Moreover, due to the exit of some firms during the housing market crisis, supply is also limited. Mortgage insurers with a differentiated financial profile can therefore benefit from the current market conditions.
An increased activity is being witnessed among payers. While mortgage insurer Radian Group Inc. (RDN) added 5 veteran mortgage industry professionals in June to strengthen it sales team, another player, Essent Group Ltd. (ESNT), made an initial public offering and raised more than $300 million of capital to expand sales in Oct 2013.
MGIC Investment currently carries a Zacks Rank #3 (Hold).
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