Radian Group Launches Radian Mortgage Capital to Expand Market Opportunity and Offer Alternative Source of Funding to Lenders
July 13 2022 - 5:30AM
Business Wire
Radian Group Inc. (NYSE: RDN) announced the launch of Radian
Mortgage Capital LLC (RMC), a mortgage conduit formed to provide
residential mortgage lenders with an additional secondary-market
option for high-quality loans and to provide mortgage investors
with a trusted, high-quality sponsor. Consistent with Radian’s
stated strategy, RMC expands the company’s capabilities to
participate in the mortgage market to aggregate, manage and
distribute residential mortgage credit risk.
“We view RMC’s services as a natural extension of our products,
further deepening our relationships across the mortgage ecosystem
with mortgage lenders and investors,” said Chief Executive Officer
Rick Thornberry. “As a market leader recognized for delivering
innovative mortgage products and solutions, Radian’s strong
liquidity and capital base, deep market relationships, and credit
risk management expertise combined with an experienced RMC team
provide us with the strategic flexibility to broaden our market
reach through RMC.”
RMC plans to leverage Radian’s extensive lender relationships to
aggregate and distribute high-quality residential mortgage loans
into the capital markets through private label securitizations and
direct sales to mortgage investors, with the option to retain and
manage structured components of the underlying credit risk where
the company sees value.
“Our mortgage insurance customers have communicated a growing
need for additional secondary market options, and we are pleased to
be able to expand the products we deliver to lenders through RMC,”
said Radian’s Mortgage Business President Derek Brummer. “We
believe Radian’s strong track record for pricing and managing
mortgage credit risk and leveraging decades of robust residential
mortgage performance data through multiple cycles, together with
our extensive proprietary analytics platforms, positions us to
expand our position as a trusted and valued partner across the
mortgage market.”
About Radian
Radian Group Inc. (NYSE: RDN) is ensuring the American dream of
homeownership responsibly and sustainably through products and
services that include industry-leading mortgage insurance and a
comprehensive suite of mortgage, risk, title, valuation, asset
management and other real estate services. We are powered by
technology, informed by data and driven to deliver new and better
ways to transact and manage risk. Visit radian.com and
homegenius.com to learn more about how Radian and its pioneering
homegenius platform are building a smarter future for mortgage and
real estate services.
Forward-Looking Statements
All statements in this press 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
Exchange Act and the U.S. Private Securities Litigation Reform Act
of 1995. In most cases, forward-looking statements may be
identified by words such as “anticipate,” “may,” “will,” “could,”
“should,” “would,” “expect,” “intend,” “plan,” “goal,”
“contemplate,” “believe,” “estimate,” “predict,” “project,”
“potential,” “continue,” “seek,” “strategy,” “future,” “likely” or
the negative or other variations on these words and other similar
expressions. These statements, which may 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 statement. These statements speak only as of
the date they were made, and we undertake no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. We operate in a
changing environment where new risks emerge from time to time and
it is not possible for us to predict all risks that may affect us.
Our ability to successfully execute and implement our strategic
plans with respect to RMC is subject to risks and uncertainties,
including without limitation, economic conditions and the health of
U.S. housing markets generally, regulatory changes impacting the
secondary mortgage market, competition and pricing risk, liquidity
and interest rate risks, risks associated with our use of financial
leverage, legal and compliance related risks, customer receptivity
risks, including any potential impact on our existing business
lines, risks related to the quality of third-party mortgage
underwriting and mortgage servicing, and risks resulting from
changes in our investment, financing and hedging strategies. For
more information regarding these risks and uncertainties as well as
other additional risks that we face, you should refer to the Risk
Factors detailed in Item 1A of our Annual Report on Form 10-K for
the year ended December 31, 2021, and subsequent reports filed from
time to time with the U.S. Securities and Exchange Commission.
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For Investors John Damian – Phone: 215.231.1383 Email:
john.damian@radian.com For the Media Rashi Iyer – Phone:
215.231.1167 Email: rashi.iyer@radian.com
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