Radian Reduces Legacy Exposure in Pact with Freddie Mac, Credit Risk on More than 12 Percent Delinquent Loans Cut
September 5, 2013
Radian Guaranty has struck a deal with Freddie Mac on a pool of delinquent and reperforming mortgages, capping the private mortgage insurers exposure at $840 million and reducing the total number of delinquent loans by 12.6 percent. Announced on Aug. 29, the agreement covers a group of 25,760 first-lien loans insured by Radian and held by the government-sponsored enterprise that were delinquent as of Dec. 31, 2011. The agreement provides for the future treatment of these loans, including claim payments, loss mitigation and termination of insurance coverage. At the same time, Radians claim exposure on 9,756 delinquent loans and 4,586 loans that were...