Radian Says It Will Meet Capital Ratio

Mortgage & Real Estate

Radian Guaranty said it should maintain a risk-to-capital ratio of under 25-to-1 for the rest of this year, and thus not trigger the need to turn to another subsidiary to write new business in certain states.

The company said “proactive capital management initiatives” were responsible for it being able to write policies in its main underwriting unit for all of 2012.

Meanwhile, the company’s inventory of delinquent loans was virtually flat from the start of September through the end of the month.

It started with 94,823 delinquent loans and added 6,430 new notices of delinquency. This was offset by 4,485 cures, paid claims on 1,327 policies and denials or rescissions of another 610 policies. This resulted in an inventory of 94,831 on Sept. 30.

In the same announcement, Radian said it did $3.54 billion of new insurance written in September, which is down from $3.75 billion in August.

 

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