You are correct, the beautiful tree is a definitely a magnolia tree and appears to be saucer magnolia. This insect is appropriately named magnolia scale (Neolecanium cornuparvum) and is commonly found in this region on saucer magnolias. The blackening on the branches is actually a mold growing on the 'honeydew' , a substance secreted by the magnolia scales.

Here is an article from MSU extension describing the pest and its management written during a particularly bad year for magnolia scale:

Magnolia scale is having a good year - MSU Extension

And here is a recently updated Penn State extension article:

Magnolia Scale (psu.edu)

There are a variety of treatment options. If it is just a small, localized infection on a few branches - the simplest approach is to remove those branches or just hose them down with water and manually remove/squash/spray off the pests. If you attempt any other kind of treatment yourself, be sure to follow label instructions. 

This is a common pest and many arboriculture companies commonly apply oil or other treatments to manage this pest.