News

07/09/2009

Radian Supports New HARP Loan-to-Value Ceiling

PHILADELPHIA--(BUSINESS WIRE)--Jul. 9, 2009-- Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc. (NYSE:RDN), today stated its full support of the new, higher loan-to-value (LTV) ceiling for the Home Affordable Refinance Program (HARP), which is part of the government’s Homeowner Affordability and Stability Plan (HASP). Previously, the LTV ceiling was 105 percent. The new limit of 125 percent LTV means more borrowers will be eligible to refinance despite falling home prices, even in areas hit hardest by home value depreciation.

“Radian is committed to promoting and preserving the dream of homeownership for borrowers, and fully supports government and industry efforts to assist troubled homeowners to remain in their homes by sensibly restructuring or refinancing their mortgages,” said Teresa Bryce, President of Radian Guaranty Inc. “For borrowers with Radian insured loans, we are ready to handle the anticipated increase in volume from the government sponsored programs or through other lender initiated refinance or modification programs.”

Radian already has programs in place to provide assistance to lenders and their borrowers who are struggling with mortgage payments. The “Fast Advance” program was launched in 2008 and to date it has helped hundreds of borrowers realize more advantageous mortgage terms. The program advances up to 15% of a potential claim to the lender to forestall a full claim and to keep borrowers in their homes and out of foreclosure. Radian has also partnered with third-party credit counseling services to provide additional assistance to borrowers who are evaluating the best options to restore their credit.

“Radian’s commitment to our lending partners and their borrowers is to process all modification requests in a timely manner,” added Bryce. “The new expanded loan-to-value limits reflect the need for more flexibility as a result of dropping home values. This will allow thousands of additional homeowners who have made their payments on time, to lower their monthly payments by refinancing to today’s attractive fixed rate programs.”

About Radian

Radian Group Inc. (NYSE:RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk management products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.com.

Source: Radian Group Inc.

Radian Group Inc.
For investors:
Terri Williams-Perry, 215-231-1486
terri.williams-perry@radian.com
or
For the media:
Rick Gillespie, 215-231-1061
rick.gillespie@radian.com