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Company Description

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1601 Market Street

Philadelphia, PA 19103

United States

Phone: 215-231-1000


Radian Group Inc. provided mortgage insurance and products and services to the real estate and mortgage finance industries. Segments The company operates through two business segments, Mortgage Insurance, and Mortgage and Real Estate Services (Services). Mortgage Insurance segment This segment provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions nationwide. The company provides its mortgage insurance products mainly through its wholly-owned subsidiary, Radian Guaranty Inc. (Radian Guaranty). Products Traditional types of private mortgage insurance include ‘primary mortgage insurance’ and ‘pool insurance’. Traditional Risk - Primary Mortgage Insurance Primary mortgage insurance provides protection against mortgage defaults at a specified coverage percentage. When there is a valid claim under primary mortgage insurance, the maximum liability is determined by multiplying the claim amount, which consists of the unpaid loan principal, plus past due interest and certain expenses associated with the default, by the coverage percentage. The company’s Master Policies are filed in each of the jurisdictions in which the company conducts business. Among other things, the company’s Master Policies set forth the terms and conditions of its mortgage insurance coverage, including loan eligibility requirements; premium payment requirements; coverage term; provisions for policy administration; exclusions or reductions in coverage; claims payment and settlement procedures; and dispute resolution procedures. The company provides primary mortgage insurance on a flow basis and also provides primary mortgage insurance on a ‘structured’ basis, which includes business that the company has written to insure a group of individual loans. In flow transactions, mortgages typically are insured as they are originated, while in the company’s Structured Transactions, it typically provides insurance on a group of mortgages after they have been originated. Traditional Risk - Pool Insurance Pool insurance differs from primary insurance in that the company’s maximum liability is not limited to a specific coverage percentage on an individual mortgage loan. The company wrote much of its pool insurance in the form of Structured Transactions, such as credit enhancement on loans in pools purchased by the GSEs (government-sponsored enterprises (Fannie Mae and Freddie Mac)), as well as loans included in residential mortgage-backed securities (RMBS) transactions. An insured pool of mortgages might contain mortgages that are already covered by primary mortgage insurance. In these transactions, pool insurance is secondary to any primary mortgage insurance that exists on mortgages within the pool. Customers The principal customers of the company’s Mortgage Insurance segment are mortgage originators, such as mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions, and community banks. Earned premiums attributable to Wells Fargo Bank, National Association accounted for approximately 10% of the company’s consolidated revenues in 2015. Competition The company’s competitors include other private mortgage insurers and federal and state governmental and quasi-governmental agencies, principally the Federal Housing Administration and the U.S. Department of Veterans Affairs. The company competes directly with the six private mortgage insurers, such as Arch U.S. MI (acquired CMG Mortgage Company); Essent Guaranty Inc.; Genworth Financial Inc.; Mortgage Guaranty Insurance Corporation; NMI Holdings, Inc.; and United Guaranty Corporation. Services segment This segment consists primarily of the company’s subsidiary, Clayton Holdings LLC (Clayton), and provides services and solutions to the real estate and mortgage finance industries, including outsourced services, mortgage-related analytics and specialized consulting and surveillance services for buyers and sellers of, and investors in, mortgage- and real estate-related loans and securities, as well as other asset-backed securities (ABS). This segment provides information


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