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11/22/2011

Radian to Offer New Program in Support of HARP Enhancements

Helps Mortgage Lenders to Aid Struggling Homeowners

PHILADELPHIA--(BUSINESS WIRE)--Nov. 22, 2011-- Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc. (NYSE: RDN), today announced its continued support of the Home Affordable Refinance program (HARP). The program was first introduced in 2009 by the Federal Housing Finance Agency (FHFA) and the Department of the Treasury to help borrowers who may not otherwise qualify for refinancing because of declining home values. Recent enhancements are designed to help more homeowners take advantage of today’s low interest rates.

Radian’s Performing Loan Modification Program will be offered exclusively in support of HARP and applies to Radian-insured loans owned by Fannie Mae or Freddie Mac. Radian’s program, which will be officially announced in early December, incorporates new HARP enhancements so that lenders may offer the program more easily. These enhancements include:

  • Removing the current Loan-to-Value (LTV) ceiling for fixed-rate mortgages
  • Waiving certain lender representations and warranties for the refinanced loans
  • Eliminating certain risk-based fees
  • Reducing the need for a new property appraisal
  • Extending the HARP deadline to December 13, 2013

“The recovery of our housing market requires a shared effort in the mortgage industry – among mortgage insurers, lenders, and the government. It’s not a responsibility we at Radian take lightly, and we’re committed to doing our part to help our lending partners assist troubled homeowners,” said S.A. Ibrahim, Chief Executive Officer of Radian Group Inc.

“Continuing to participate in HARP is the right thing to do for our communities, the recovery of the housing market and improvement of the overall economy,” stated Teresa Bryce Bazemore, President of Radian Guaranty Inc. “These are homeowners who have paid their monthly mortgage payments and are committed to their homes, yet owe more than their home is now worth.”

Bazemore added, “Refinancing through the HARP program will provide homeowners with greater financial flexibility, significantly reducing the likelihood of default – a clear win for the homeowner and for Radian.”

For more information about the HARP enhancements, visit www.fhfa.gov.

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.
Emily Riley, 215.231.1035
email: emily.riley@radian.com