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MGIC's own potential growth hardly seems restricted. Last October the Government lowered the down-payment requirement on mortgage loans insured by private companies from 10% to 5%. That move, Karl thinks, will open a vast new market for MGIC in insuring loans to young home buyers. By now, too, Karl has expanded far beyond his original business; in the past five years he has started subsidiaries that insure commercial leases for small businessmen and municipal bonds issued by small communities. Now Karl is even building an entire community in Florida. Naturally, he hopes that the mortgage loans on most of the town houses will be insured by MGIC.