Radian Won't Insure Stated-Income Loans

Radian Guaranty Inc., Philadelphia, the primary mortgage insurance subsidiary of Radian Group Inc., says it will no longer issue policies for stated-income and stated-asset loans. In a message to its customers, Radian said, "while certain forms of alternative documentation used to verify assets and income are appropriate with a disciplined underwriting process, the stated programs will no longer be insurable as a result of poor performance." This change takes effect on April 30. It is in addition to other changes affecting loan-to-value, documentation, and credit score requirements Radian is implementing on March 31. "These changes reflect the current market conditions and a commitment to our business partners and shareholders to write new business that will allow homebuyers appropriate and affordable alternatives," said Dave Applegate, president of Radian Guaranty. "The continued weakness in the housing market and overall economy has created unprecedented challenges for the industry and our clients. .... Accordingly, we have tightened guidelines and increased pricing in areas in which we continue to see deterioration in our risk-adjusted returns." Radian can be found online at http://www.radianmi.com.