News
Read about the progress we’re making across the mortgage and real estate services industry.
02/29/2016
Radian Announces Updated Pricing for MI Business and Completion of Share Repurchase Program
-- Updated MI pricing provides increased risk-based granularity –
-- Company successfully completes
Radian’s new borrower-paid monthly rate card, which is available on the company’s website and will become effective in April, subject to regulatory approval, has the following characteristics:
- Refined credit tiers with the expansion of FICO buckets from four to eight
- Generally lower rates for the following:
- 740+ FICOs for loan terms greater than 20 years
- 680+ FICOs for loan terms of 20 years and fewer
- Generally higher rates for loans with FICOs below 740 for loan terms greater than 20 years
-
Eliminated adjustments for loan amounts greater than
$417,000 and adjustments for rate/term refinances
“Our top priority at Radian is to write as much new, high-quality
mortgage insurance business as possible at an attractive return, and in
a manner that is consistent with regulatory requirements,” said Radian
Guaranty President
OVERVIEW OF RECENT PRICING ACTIONS
As part of its strategy to compete for the high-quality business being originated today, capture a larger share of borrower-paid monthly business and generate a blended return on equity in the mid-teens, Radian has:
-
increased its filed rates for lender-paid mortgage insurance, which
will become effective on
March 28, 2016 , subject to regulatory approval; - continued to provide customized rates for lender-paid singles on a selective and negotiated basis, while declining to participate in the significantly discounted aggregated singles business; and
-
as discussed above, updated its borrower-paid monthly rates in order
to remain competitive and capture more high-quality borrower-paid
monthly business. These rates will become effective on
April 7, 2016 , subject to regulatory approval.
Applying these combined actions to Radian’s new business production in 2015 would have resulted in a modest increase in its average premium rate.
SHARE REPURCHASE PROGRAM
As of
“We are pleased that Radian’s improved financial position has positioned
us to return value more quickly to stockholders,” stated
ABOUT RADIAN
-
Mortgage Insurance , through its principal mortgage insurance subsidiaryRadian Guaranty Inc. This private mortgage insurance protects lenders from default-related losses, facilitates the sale of low-downpayment mortgages in the secondary market and enables homebuyers to purchase homes more quickly with downpayments less than 20%. -
Mortgage and Real Estate Services, through its principal services
subsidiary Clayton, as well as
Green River Capital ,Red Bell Real Estate and ValuAmerica. These solutions include information and services that financial institutions, investors and government entities use to evaluate, acquire, securitize, service and monitor loans and asset-backed securities.
Additional information may be found at www.radian.com.
FORWARD-LOOKING STATEMENTS
All statements in this press release that address events, developments or results that we expect or anticipate may occur in the future are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as "anticipate," "may," "will," "could," "should," "would," "expect," "intend," "plan," "goal," "contemplate," "believe," "estimate," "predict," "project," "potential," "continue," "seek," "strategy," "future," "likely" or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements.
For more information regarding these risks and uncertainties as well as
certain additional risks that we face, you should refer to the Risk
Factors detailed in Item 1A of Part I of our Annual Report on Form 10-K
for the year ended
View source version on businesswire.com: http://www.businesswire.com/news/home/20160229005589/en/
Source:
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.com