3 had FICO credit scoresbelow 620 and 13

The webcast will be available for replay on thecompany's website through February 20, 2009 under Investor Information.This press release, which includes certain additional statistical and otherinformation, including non-GAAP financial information and a supplement thatcontains various portfolio statistics are both available on the Company'swebsite at under Investor Information.Safe Harbor StatementForward Looking Statements and Risk Factors:Our revenues and losses could be affected by the risk factors below. Theserisk factors should be reviewed in connection with this press release and ourperiodic reports to the Securities and Exchange Commission. These factors mayalso cause actual results to differ materially from the results contemplatedby forward looking statements that we may make. Forward looking statementsconsist of statements which relate to matters other than historical fact,including matters that inherently refer to future events. Among others,statements that include words such as we "believe", "anticipate" or "expect",or words of similar import, are forward looking statements. We are notundertaking any obligation to update any forward looking statements or otherstatements we may make even though these statements may be affected by eventsor circumstances occurring after the forward looking statements or otherstatements were made. No investor should rely on the fact that such statementsare current at any time other than the time at which this press release wasissued.Because our policyholders position could decline and our risk-to-capital couldincrease beyond the levels necessary to meet regulatory requirements we areconsidering options to obtain additional capital.The Office of the Commissioner of Insurance of Wisconsin is our principalinsurance regulator.

To assess a mortgage guaranty insurer's capital adequacy,Wisconsin's insurance regulations require that a mortgage guaranty insurancecompany maintain "policyholders position" of not less than a minimum computedunder a prescribed formula. Some other states that regulate ourmortgage guaranty insurance companies have similar regulations.Some states that regulate us have provisions that limit the risk-to-capitalratio of a mortgage guaranty insurance company to 25:1.If an insurancecompany's risk-to-capital ratio exceeds the limit applicable in a state, itmay be prohibited from writing new business in that state until itsrisk-to-capital ratio falls below the limit.The mortgage insurance industry is experiencing material losses on the 2006and 2007 books. The ultimate amount of these losses will depend in part ongeneral economic conditions and the direction of home prices in California,Florida and other distressed markets, which in turn will also be influenced bygeneral economic conditions and other factors. Because we cannot predictfuture home prices or general economic conditions with confidence, we cannotpredict with confidence what our ultimate losses will be on our 2006 and 2007books.Our current expectation, however, is that these books will continue togenerate material incurred and paid losses for a number of years. Our view ofpotential losses on these books has trended upward since the first quarter of2008, including since the time at which we finalized our Form 10-Q for thethird quarter of 2008.Unless recent loss trends materially mitigate, MGIC'spolicyholders position could decline and its risk-to-capital could increasebeyond the levels necessary to meet these regulatory requirements and thiscould occur before the end of 2009.

As a result, we are considering options toobtain capital to write new business, which could occur through the sale ofequity or debt securities and/or reinsurance. We cannot predict whether wewill be successful in obtaining capital from any source but any sale ofadditional securities could dilute substantially the interest of existingshareholders.A downturn in the domestic economy or a decline in the value of borrowers'homes from their value at the time their loans closed may result in morehomeowners defaulting and our losses increasing. Losses result from events that reduce a borrower's ability to continue to makemortgage payments, such as unemployment, and whether the home of a borrowerwho defaults on his mortgage can be sold for an amount that will cover unpaidprincipal and interest and the expenses of the sale. In general, favorableeconomic conditions reduce the likelihood that borrowers will lack sufficientincome to pay their mortgages and also favorably affect the value of homes,thereby reducing and in some cases even eliminating a loss from a mortgagedefault. Housing values may decline even absent a deterioration in economicconditions due to declines in demand for homes, which in turn may result fromchanges in buyers' perceptions of the potential for future appreciation,restrictions on mortgage credit due to more stringent underwriting standards,liquidity issues affecting lenders or other factors. The residential mortgagemarket in the United States has for some time experienced a variety ofworsening economic conditions and housing values in many areas continue todecline.

The credit crisis that began in September 2008 may result in furtherdeterioration in economic conditions and home values.The mix of business we write also affects the likelihood of losses occurring. Even when housing values are stable or rising, certain types of mortgages havehigher probabilities of claims. These segments include loans withloan-to-value ratios over 95 (including loans with 100 loan-to-value ratiosor in certain markets that have experienced declining housing values, over90), FICO credit scores below 620, limited underwriting, including limitedborrower documentation, or total debt-to-income ratios of 38 or higher, aswell as loans having combinations of higher risk factors. As of December 31,2008, approximately 59.7 of our primary risk in force consisted of loans withloan-to-value ratios equal to or greater than 95, 9.3 had FICO credit scoresbelow 620, and 13.7 had limited underwriting, including limited borrowerdocumentation. We classify as fixed rate loans adjustable ratemortgages in which the initial interest rate is fixed during the five yearsafter the mortgage closing. We believe that when the reset interest ratesignificantly exceeds the interest rate at loan origination, claims on ARMswould be substantially higher than for fixed rate loans.