Radian Guaranty Launches Program to Keep Borrowers in Homes
03 Avril 2008 - 8:00PM
PR Newswire (US)
PHILADELPHIA, April 3, 2008 /PRNewswire/ -- Radian Guaranty, the
primary mortgage insurance subsidiary of Radian Group Inc.
(NYSE:RDN), today announced the launch of Radian FastAdvance, a
program that provides quick, partial claims advances that allow
residential mortgage servicers to assist distressed borrowers by
modifying the terms of a loan (such as a rate reduction) or by
structuring a customized repayment plan. Radian Guaranty Inc. also
announced a partnership with Consumer Credit Counseling Service of
Delaware Valley (CCCS) that will provide education, customized
assistance, and a method of direct communication between borrowers
and servicers using the Radian FastAdvance program. The Company
noted that the current economic environment has created a
significant number of loan defaults and that loan servicers are
currently attempting to manage these cases by providing more
options to help people remain in their homes. Since there is no
single solution that will help every borrower, Radian is advancing
funds to servicers so they can take the specific action required to
keep borrowers in their homes rather than proceeding with a
stressful and costly foreclosure process. In addition to
FastAdvance, Radian Guaranty's partnership with Consumer Credit
Counseling Service of Delaware Valley provides borrowers access to
third-parties that can assist them in sorting through all of their
options. Radian and its servicing partners are seeking to rebuild
borrower confidence by providing them with the tools they need to
understand their financial options. "The combination of the Radian
FastAdvance program and the partnership with the CCCS is a sign of
progress in helping borrowers and servicers navigate what has been
a very difficult market environment," said Paul Fischer, Radian
Guaranty's Executive Vice President of Loss Management. "Having
such a respected, independent counseling organization available
will give individual borrowers the confidence to work through their
situation." Radian FastAdvance has been successfully piloted for
several months and has received favorable reactions from mortgage
servicers who have participated in the program. "Radian FastAdvance
allows the front line servicing specialist additional flexibility
in providing customized assistance for the borrower in today's
challenging environment," said Matt McCrodden, Director of Default
Administration, Option One Mortgage Company. Mr. Fischer concluded,
"One of our first cases enabled the mortgage servicer to modify an
adjustable rate mortgage to a lower fixed rate. This resulted in a
significantly reduced and affordable payment for the borrower. Our
goal is for all mortgage servicers to make use of Radian
FastAdvance so that borrowers with the desire and the ability to
work through their situation are able to stay in their homes."
About Radian Radian Group Inc. is a global credit risk management
company headquartered in Philadelphia with significant operations
in New York and London. Radian develops innovative financial
solutions by applying its core mortgage credit risk expertise and
structured finance capabilities to the credit enhancement needs of
the capital markets worldwide, primarily through credit insurance
products. The company also provides credit enhancement for public
finance and other corporate and consumer assets on both a direct
and reinsurance basis and holds strategic interests in credit-based
consumer asset businesses. Additional information may be found at
http://www.radian.biz/. About CCCS Consumer Credit Counseling
Service of Delaware Valley positively impacts human lives and
communities through comprehensive consumer credit education,
counseling, asset building and debt reduction programs without
regard to economic status. Established 42 years ago, CCCS provides
knowledgeable, expert and caring advice to consumers looking for
help in improving their credit situation and in increasing their
savings. All statements in this news release that address events,
developments or results that we expect or anticipate may occur in
the future are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and the U.S. Private Securities
Litigation Reform Act of 1995. These statements, which include,
without limitation, projections regarding our future performance
and financial condition are made on the basis of management's
current views and assumptions with respect to future events. Any
forward-looking statement is not a guarantee of future performance
and actual results could differ materially from those contained in
the forward looking information. The forward-looking statements, as
well as our prospects as a whole, are subject to risks and
uncertainties, including the following: actual or perceived changes
in general financial and political conditions, such as extended
national or regional economic recessions, changes in housing demand
or mortgage originations, changes in housing values (in particular,
further deterioration in the housing, mortgage and related credit
markets, which would harm our future consolidated results of
operations and, if more severe than our current predictions, could
cause losses for our mortgage insurance business to be worse than
expected), changes in the liquidity in the capital markets and the
further contraction of credit markets, population trends and
changes in household formation patterns, changes in unemployment
rates, changes or volatility in interest rates or consumer
confidence, changes in credit spreads, changes in the way investors
perceive the strength of private mortgage insurers or financial
guaranty providers, investor concern over the credit quality and
specific risks faced by the particular businesses, municipalities
or pools of assets covered by our insurance; actual or perceived
economic changes or catastrophic events in geographic regions (both
domestic and international) where our mortgage insurance or
financial guaranty insurance in force is more concentrated; our
ability to successfully acquire additional capital in the event
that capital is required to support our long- term liquidity needs
and to protect our credit and financial strength ratings; a
decrease in the volume of home mortgage originations due to reduced
liquidity in the lending market, tighter underwriting standards and
a deterioration in housing markets throughout the United States; a
decrease in the volume of municipal bonds and other public finance
and structured finance transactions that we insure; the loss of a
customer for whom we write a significant amount of mortgage
insurance or financial guaranty insurance or the influence of large
customers; disruption in the servicing of mortgages covered by our
insurance policies; the aging of our mortgage insurance portfolio,
and changes in severity or frequency of losses associated with
certain of our products that are riskier than traditional mortgage
insurance or financial guaranty insurance policies; the performance
of our insured portfolio of higher risk loans, such as Alt-A and
sub-prime loans, and adjustable rate products, such as adjustable
rate mortgages and interest-only mortgages, which have resulted in
increased losses in 2007 and may result in further losses; reduced
opportunities for loss mitigation in markets where housing values
fail to appreciate or begin to decline; changes in persistency
rates of our mortgage insurance policies caused by changes in
refinancing activity, in the rate of appreciation or depreciation
of home values and changes in the mortgage insurance cancellation
requirements of mortgage lenders and investors; downgrades or
threatened downgrades of, or other ratings actions with respect to,
our credit ratings or the insurance financial strength ratings
assigned by the major rating agencies to any of our rated insurance
subsidiaries at any time (in particular, our credit rating and the
financial strength ratings of our mortgage insurance subsidiaries
that are currently under review for possible downgrade); heightened
competition for our mortgage insurance business from others such as
the Federal Housing Administration and the Veterans' Administration
or other private mortgage insurers, from alternative products such
as "80-10-10" loans or other forms of simultaneous second loan
structures used by mortgage lenders, from investors using forms of
credit enhancement other than mortgage insurance as a partial or
complete substitution for private mortgage insurance and from
mortgage lenders that demand increased participation in revenue
sharing arrangements such as captive reinsurance arrangements;
changes in the charters or business practices of Federal National
Mortgage Association and Freddie Mac, the largest purchasers of
mortgage loans that we insure; heightened competition for financial
guaranty business from other financial guaranty insurers, including
those recently downgraded to ratings equal to or lower than our
ratings, from other forms of credit enhancement such as letters of
credit, guaranties and credit default swaps provided by foreign and
domestic banks and other financial institutions and from
alternative structures that may permit insurers to securitize
assets more cost-effectively without the need for the types of
credit enhancement we offer, or result in our having to reduce the
premium we charge for our products; the application of existing
federal or state consumer, lending, insurance, securities and other
applicable laws and regulations, or changes in these laws and
regulations or the way they are interpreted; including, without
limitation: (i) the possibility of private lawsuits or
investigations by state insurance departments and state attorneys
general alleging that services offered by the mortgage insurance
industry, such as captive reinsurance, pool insurance and contract
underwriting, are violative of the Real Estate Settlement
Procedures Act and/or similar state regulations, (ii) legislative
and regulatory changes affecting demand for private mortgage
insurance or financial guaranty insurance, or (iii) legislation and
regulatory changes limiting or restricting our use of (or
requirements for) additional capital, the products we may offer,
the form in which we may execute the credit protection we provide
or the aggregate notional amount of any product we may offer; the
possibility that we may fail to estimate accurately the likelihood,
magnitude and timing of losses in connection with establishing loss
reserves for our mortgage insurance or financial guaranty
businesses, the premium deficiency for our second-lien mortgage
insurance business or to estimate accurately the fair value amounts
of derivative contracts in our mortgage insurance and financial
guaranty businesses in determining gains and losses on these
contracts; changes in accounting guidance from the Securities and
Exchange Commission or the Financial Accounting Standards Board (in
particular changes regarding income recognition and the treatment
of loss reserves in the financial guaranty industries); our ability
to profitably grow our insurance businesses in international
markets, which depends on a number of factors such as foreign
governments' monetary policies and regulatory requirements, foreign
currency exchange rate fluctuations, and our ability to develop and
market products appropriate to foreign markets; legal and other
limitations on the amount of dividends we may receive from our
subsidiaries; and vulnerability to the performance of our strategic
investments, including in particular, our investment in Sherman
Financial Group LLC. 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 Part I, Item 1A of
our annual report on Form 10-K for the year ended December 31,
2007. We caution you not to place undue reliance on these
forward-looking statements, which are current only as of the date
of this news release. We do not intend to, and we disclaim any duty
or obligation to, update or revise any forward-looking statements
made in this report to reflect new information or future events or
for any other reason. Contact: Rick Gillespie - phone: 215 231.1061
Email: DATASOURCE: Radian Guaranty CONTACT: Rick Gillespie of
Radian Guaranty, +1-215-231-1061, or Web site:
http://www.radian.biz/
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