Radian Locks Brokers Out of Condo Market

Radian Guaranty -- the nation's third-largest mortgage insurance company -- is changing its underwriting guidelines, effectively locking loan brokers out of the condominium market. Come Oct. 20, the mortgage insurer will only accept insurance applications on condo loans if they are funded through a lender's retail network. It's believed that Radian is the first of the nation's seven MIs to adopt such a policy on broker-sourced condo loans. The National Association of Mortgage Brokers is none too happy about the change. "They're singling out brokers," said NAMB chief Marc Savitt. "They're hurting consumers, because brokers still do a large portion of the nation's originations." Mr. Savitt said the NAMB has not yet talked to Radian about the new policy, but may soon. "I think we'll wait until the dust clears first," he said. At deadline time, Radian officials could not be reached for comment. The condo/broker language is not the only underwriting change being made by the MI. It also is tightening up some of its loan-to-value ratio guidelines. Radian can be found online at http://www.radianmi.com.