MGIC Selects Mortgage Risk's Automated Valuation Model

JERSEY CITY, N.J., Jan. 21, 1999 /PRNewswire/ -- Mortgage Guaranty Insurance Company (MGIC), the nation's largest private mortgage insurer, selected Mortgage Risk Assessment Corporation's HPA2000™ as its automated valuation model. MGIC will use the HPA2000™ in its claims and underwriting departments as well in its investors' services subsidiary.

"We selected Mortgage Risk's product after extensive testing of several other automated valuation models. HPA2000™ offered the best combination of accuracy and market coverage, while being cost effective and easy to use," according to Larry Pierzchalski, executive vice president, risk management at MGIC. "The HPA2000™ is able to be deployed onsite. As a result, when compared to other models we tested, it provided the best turnaround time."

The HPA2000™ is the latest stage in the evolution of Mortgage Risk's valuation services, which now cover nearly 450 counties in 43 states. It values 97% of the properties in counties in which it operates.

"We're delighted to have MGIC as a client. As the largest mortgage insurer in the nation, MGIC is in a leadership position for the entire industry. To have MGIC select our valuation model amidst competition is high praise indeed," said Douglas Bendt, president of Mortgage Risk.

Mortgage Risk Assessment Corporation was founded in 1992. It maintains mortgage and sales history on more than 41 million properties, the largest residential property database in the country. Besides its valuation software, it provides software with default, prepayment, and pricing models for risk management as well as lists for direct mail and telemarketing.

MGIC is a subsidiary of MGIC Investment Corporation (NYSE: MTG - news). MGIC is the nation's leading provider of private mortgage insurance with insurance in force of $138 billion, covering 1.3 million mortgages as of December 31, 1998. It serves over 9,000 lenders with more than 22,000 locations nationwide and in Puerto Rico, helping to put people into homes with low-down-payment mortgages. Private mortgage insurance covers default risk on residential first-mortgages and facilitates the sale of low-down-payment mortgages in the secondary mortgage markets. As a result, mortgage insurance expands home ownership opportunities by enabling people to buy homes with down payments of less than 20%.

For more information contact: Robert Wheelock of Mortgage Risk Assessment Corporation, 800-227-1601.

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