Radian Group will be shutting its mortgage conduit rather than trying to find a buyer for the business, the company confirmed.
The story originally appeared in HousingWire.
"Radian ceased accepting new business for Radian Mortgage Capital early last week and is in the process of thoughtfully winding down the business over the coming months," a company spokesperson said.
This move came following a process to explore its divestiture options. "Ultimately, we determined that discontinuing operations was in the best interests of our organization, our employees, and our customers," the spokesperson continued, adding conduit will be providing "essential support" to its customers during the transition.
It started
"We really see us as an extension of our current strategy related to mortgage credit risk management and our ability to aggregate that risk now through loans as well as through insurance," CEO Rick Thornberry said at the time. "And to manage that risk and to distribute that risk into the secondary market much like we do on the insurance side."
But the conduit was in a business segment that has not been a money maker for Radian. Besides real estate services, it also included a title insurance underwriter and agency.
Last September, the company announced a pivot, agreeing
As for the sale of the title and real estate units, "we are continuing to pursue strategic options, and the decision to wind down the mortgage conduit business does not reflect the outcome or direction for these businesses," the spokesperson said.
Radian Mortgage Capital did six securitizations totaling $2.2 billion;
In the final period where what Radian previously termed its "all other" segment was for accounting purposes considered an operating business, it had an adjusted pre-tax operating loss of $16.4 million for the period ended June 30, 2025.
Following the Inigo announcement, these units were shifted on the balance sheet to discontinued operations.
Discontinued operations, net of tax,
Radian Mortgage Capital was also approved by Fannie Mae, Freddie Mac and the Federal Housing Administration, the parent company's annual Securities and Exchange Commission filing said. It uses an unnamed third-party subservicer for its servicing rights, including loans held for sale in its portfolio.
"We are actively in the process of closing out our pipeline and working with our investor partners to sell our existing loan portfolio," the spokesperson said.
For 2025, Radian Group received a return of capital of $27 million from the conduit business, compared with an equity contribution to the unit of $83 million in 2024, the filing said.
