Radian Releases Delinquency Data for August
New mortgage insurance business continues to climb to $3.75 billion
Company realizes $120 million in investment gains to support
risk-to-capital position
PHILADELPHIA--(BUSINESS WIRE)--Sep. 6, 2012--
Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group
Inc., today released data for primary mortgage insurance delinquencies
for August 2012. These details may also be found on Radian’s website at http://www.radian.biz/page?name=NewsReleases.
Previously released historical data is also available on the website at http://www.radian.biz/page?name=FinancialReportsMortgageInsurance.
The information below regarding new delinquencies and cures is reported
to Radian from loan servicers. The accuracy of these reports may be
affected by several factors, including the date on which the report is
generated and by the timing of servicing transfers.
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August 2012
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Primary New Insurance Written (NIW) ($ in billions)
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$3.75
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Beginning Primary Delinquent Inventory
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(# of loans)
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97,012
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Plus: New Delinquencies
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6,042
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Less: Cures
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(5,354)
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Less: Paids
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(including those charged to a deductible or captive)
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(2,150)
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Less: Rescissions and Denials
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(727)
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Ending Primary Delinquent Inventory
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(# of loans)
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94,823
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Statutory Capital Position
In July and August, the company completed two initiatives that will
positively impact Radian Guaranty’s statutory capital position in 2012.
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The company realized approximately $120 million in after-tax gains on
securities in its investment portfolio.
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As previously announced, Radian Guaranty entered into a quota share
reinsurance agreement in April with a third-party reinsurance provider
under which it agreed to cede 20 percent of new insurance written
beginning with the business written in the fourth quarter of 2011. In
August, Radian and the reinsurer mutually agreed to increase the
amount of mortgage insurance risk ceded under the agreement from $1.25
billion to approximately $1.6 billion.
About Radian
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides
private mortgage insurance and related risk mitigation 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.
Forward-Looking Statements
Some of the statements in this press release may constitute
“forward-looking statements” within the meaning of the United States
Private Securities Litigation Reform Act of 1995. These statements are
based on our current expectations, estimates and projections. Words such
as "will," "expects," "believes" and similar expressions are used to
identify these forward-looking statements. These statements are only
predictions and as such are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to
predict. Forward-looking statements are based upon assumptions as to
future events or our future financial performance that may not prove to
be accurate. Actual outcomes and results may differ materially from what
is expressed or forecast in these forward-looking statements. As a
result, these statements speak only as of the date they were made, and
we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. 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 December 31, 2011, Item 1A
of Part II of our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2012, and subsequent reports and registration statements filed
from time to time with the Securities and Exchange Commission.
Source: Radian Group Inc.
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.com
