Deloitte & Touche Bows Out as Radian Auditor

Deloitte & Touche LLP has notified the Radian Group Inc., Philadelphia, that it has declined to stand for appointment as its independent auditor for the 2007 audit.The accounting firm was expected to end its relationship with Radian after the filing of the third-quarter 10-Q form because of an anticipated acquisition by MGIC Investment Corp. Deloitte will still work on the third-quarter filing and end the relationship shortly after that. In an 8-K filing, Radian said there were no reportable events and no disagreements between it and Deloitte on any matter of accounting principles or practices. A report from Friedman Billings Ramsey on the announcement said a new auditor could "take a more conservative stance on balance sheet valuations, leading to more aggressive write-downs in book value." The announcement caused Radian's stock to drop. As of 11 a.m. Oct. 3, Radian was trading at $23.63, down $2.36 on the day. Radian can be found online at http://www.radian.biz.