CEO Takes Issue With Radian's Classification

Investors and analysts tend to lump The Radian Group Inc., Philadelphia, into the mortgage insurance sector, but its chairman and chief executive officer disagrees with that assessment.Speaking at the Friedman Billings Ramsey annual investor conference in New York, Frank Filipps said Radian's nonmortgage insurance businesses represent over 30% of the company's earnings, and the percentage is growing. Of the $93 billion of total risk in force at Radian, $28 billion is from mortgage insurance and $65 billion is in financial guaranty, showing that Radian is not simply a mortgage insurer, he said. Mr. Filipps also spoke about the company's title insurance alternative, Radian Lien Protection. Title insurers were "so threatened by the mere introduction" of RLP that they have fought to keep it away from consumers, he said. RLP is now off the market because of a regulatory order in California, but Mr. Filipps said he expects insurance regulators there to make a decision shortly to permit RLP and, if so, it will be reintroduced. RLP is "the better product for the lender," he said. "It is faster, cheaper, and they want it." Radian can be found online at http://www.radianmi.com.