Freddie Deal Cuts Radian Delinquent Inventory 12% in August

Radian Guaranty Inc., Philadelphia, said it had more cured loans in August than new notices of delinquency reported during the month. However, the biggest removal of loans from its delinquent mortgage inventory was a result of the Aug. 29 agreement with Freddie Mac.

The month started with 77,142 loans in the inventory. Radian got delinquency notices on 4,457 loans. It also added back in 128 loans originally under rescission or denial.

The Freddie Mac agreement took out 9,756 loans (which by itself reduced the inventory approximately 12%) with cures removing 4,909 loans and paid claims another 1,635.

This means the inventory ended August at 65,427 loans.

Competitor Mortgage Guaranty Insurance Corp. started the month with 115,755 loans in its inventory. It got 9,066 new notices of delinquency.

Cures took out 8,422 loans, paid claims another 2,894 and rescissions another 177. The Milwaukee-based insurer ended the month with 113,328 loans in inventory.

In terms of new insurance written, Radian did $4.67 billion, down from July’s $5.29 billion (which the company had said was its best month ever for flow production).

MGIC’s NIW was $2.9 billion, down from $3.2 billion in July.