Radian Guaranty, a Philadelphia-based mortgage insurer, has announced the completion of a Smart Home transaction, its third and largest, to help manage the company's exposure to nonprime mortgage risk.To mitigate the risk of unexpected losses related to a $6.27 billion pool of nonprime mortgages, Radian ceded a portion of the pool to an unaffiliated reinsurance company that sold to investors $172.9 million of credit-linked notes backed by the nonprime mortgage pool. Radian said it developed Smart Home transactions in 2004 to enable it to distribute mortgage risk to the capital markets, thereby improving its risk profile and facilitating its insurance of nonprime loans. Radian Guaranty is a subsidiary of Radian Group Inc., a global credit enhancement provider that can be found online at http://www.radian.biz.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry