RDN Radian Group Inc

PHILADELPHIA, Oct. 25 /PRNewswire-FirstCall/ -- Radian Guaranty Inc. today announced that a federal district court had affirmed its position regarding the commercial nature of mortgage insurance transactions, and that the order supports keeping the mortgage process fast and efficient for consumers. The ruling, in the United States District Court for the Eastern District of Pennsylvania, found that mortgage insurance transactions between mortgage lenders and mortgage insurers are not consumer credit actions and are not subject to the notice requirements of the Fair Credit Reporting Act (FCRA). "This court order is a big win for consumers," said Roy J. Kasmar, President and Chief Operating Officer of Radian. "Mortgage transactions are consumer transactions, and we at Radian work with our lender clients to help consumers by reducing costs and increasing efficiency. Requiring mortgage insurers to issue adverse action notices to borrowers would not only be inconsistent with the FCRA, it would also disrupt the critical lender-borrower relationship, making the mortgage process unnecessarily complex and confusing for consumers." The ruling was issued in response to a class action lawsuit that claimed Radian failed to issue an adverse action notice to a customer of one of Radian's mortgage lending clients, when the customer's credit history disqualified them from receiving a lower mortgage insurance rate. Radian successfully argued that it does not take adverse action under the FCRA when it sells mortgage insurance to its mortgage lending clients, and that it does not enter into credit transactions with individual borrowers About Radian Guaranty Inc. Radian Guaranty Inc. is the mortgage insurance subsidiary of Radian Group Inc. (NYSE:RDN), a global credit enhancement company headquartered in Philadelphia. Radian Guaranty provides risk management products and services to mortgage lenders nationwide; these services increase opportunities for people to buy homes with little or no downpayment, protect lenders from default-related losses on residential first mortgages and facilitate the sale of low-downpayment mortgages in the secondary market. Additional information may be found at http://www.radian.biz/. DATASOURCE: Radian Guaranty Inc. CONTACT: Investors: Mona Zeehandelaar, Radian, +1-215-231-1674, , or Media: Radian Corporate Communications, +1-888-NEWS-520, Web site: http://www.radian.biz/

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