News

02/21/2012

Mortgage Industry Professionals Gather to Discuss American Homeownership

Panelists supported a healthier balance between the public and private sectors in today’s mortgage market; expressed concern around the FHA’s role

PHILADELPHIA--(BUSINESS WIRE)--Feb. 21, 2012-- On February 10, 2012, Radian Guaranty hosted a panel on Capitol Hill called, “Homeownership: Creating Access to Mortgages, the Public-Private Balance.” The purpose of the panel was to discuss the current state of the mortgage market, government efforts to help distressed borrowers, key legislation affecting the housing finance industry and the importance of balance between the public and private sectors in supporting sustainable homeownership.

Radian President Teresa Bryce Bazemore moderates a panel discussion about American homeownership. (Photo: Mark Finkenstaedt)

Held in Washington, DC, for an audience of primarily Capitol Hill staffers, the panel was moderated by Teresa Bryce Bazemore, president of Radian Guaranty, with opening remarks provided by Radian CEO S.A. Ibrahim. Featured panelists included notable experts in the housing and mortgage industries including David Berenbaum, Chief Program Officer for the National Community Reinvestment Coalition; Mark Fleming, Chief Economist for CoreLogic; David John, Senior Research Fellow in Retirement Security and Financial Institutions for The Heritage Foundation; and Faith Schwartz, Executive Director for Hope Now Alliance.

“This is the third year that Radian has had the privilege of hosting this panel discussion, and we’re honored to be working alongside such distinguished experts in the industry,” stated Bazemore. “I think it’s safe to say that we all agree a better balance between private and public capital is needed to support a healthy housing finance system. It’s through open dialogue and collaboration like this panel that progress is made, and Radian is proud to be a part of that.”

In general, panelists were cautiously optimistic and shared the viewpoint that more private capital is important to fuel the housing market recovery. “This type of consensus shows there is an opportunity to move forward in a bi-partisan manner so we can tackle these issues facing the industry,” stated Bazemore.

Panelists expressed concern around the Federal Housing Administration (FHA)’s role in today’s mortgage market. Mark Fleming of CoreLogic said, “Well, it’s really no surprise that the FHA has such a low capital reserve ratio today given the high LTV lending they have been doing. But how we solve that problem is left up to you (motioning to the audience) to decide.”

Panelists agreed that it’s not just about recovery in the present market, but rather about how the industry moves forward, taking into consideration what the future market looks like with private capital playing a more prominent role. “The FHA has helped provide liquidity in a challenging market, but now we’re almost 100% reliant on the government,” stated David John of The Heritage Foundation. “When we think about moving the market forward, we need a clear roadmap to get us there that includes more balance.” David Berenbaum of the National Community Reinvestment Coalition agreed with this sentiment.

Fleming added, “I’m not going to be the ‘Debbie downer’ economist this year. I think the market will turn the corner in due course.”

Bazemore noted, “We have to remember that the mortgage market never stopped, even during the more challenging years of late. We’re here today to better understand the existing dynamics of an ever-changing industry. By working together, we get closer to finding a solution that provides better balance.”

Additional information, event footage and photography may be found at: www.Radian.biz/DCPanel.

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.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50171885&lang=en

Source: Radian Group Inc.

Radian
Emily Riley, 215-231-1035
emily.riley@radian.com