Freddie Mac Extends Radians Ability to Write Coverage through 2013
Freddie Mac, the government mortgage buyer, has approved Radian Mortgage Assurance to write coverage through the end of next year, Philadelphia-based Radian said in a statement.
The approval gives Radian a method to continue selling insurance if other units breach regulatory limits of risk relative to capital, according to the statement.
“This helps to improve the credit composition of our mortgage insurance book and better position Radian for a return to operating profitability next year,” CEO S.A. Ibrahim said in the statement.
Some of Radian’s competitors including PMI Group Inc. and Triad Guaranty Inc. were forced to stop selling new policies after falling short of the standards as losses backing home loans drained capital. Mortgage insurers cover losses when homeowners default and foreclosures fail to recoup costs.