Radian Announces Forbearance in Gulf Area

Radian Guaranty Inc., a Philadelphia-based provider of mortgage insurance, has announced that it will support more flexible mortgage payment terms to accommodate homeowners in the areas affected by Hurricane Katrina.Radian said its forbearance guidelines will enable loan servicers to apply Fannie Mae's and Freddie Mac's special relief provisions to mortgage loans for which Radian has insured the first-lien portion. In addition, Radian will make the guidelines available to servicers of private-label mortgage-backed securities and nonconforming loans that Radian has insured. Under these provisions, loan servicers and lenders will have the flexibility to offer various resolution scenarios, including suspension of mortgage payments for up to six full payments; repayment plans of up to 24 months; loan modifications to help bring delinquent loans current; and suspension of pending foreclosures for up to three months. Radian Guaranty, a subsidiary of credit enhancement provider Radian Group Inc., can be found online at http://www.radian.biz.