Radian Announces Ability to Comply with PMIERs 2.0
September 28 2018 - 06:30AM
Business Wire
-- Company expects to maintain substantially
the same excess of Available Assets over Minimum Required Assets
under PMIERs 2.0 as it had on June 30, 2018 under the current
PMIERs --
Radian Guaranty Inc., the principal mortgage insurance
subsidiary of Radian Group Inc. (NYSE: RDN), today commented on the
new Private Mortgage Insurer Eligibility Requirements (PMIERs 2.0)
of Fannie Mae and Freddie Mac (GSEs) that were issued yesterday and
will become effective on March 31, 2019.
Radian expects to comply with PMIERs 2.0 as of the effective
date of March 31, 2019, and is positioned to maintain substantially
the same excess of Available Assets over Minimum Required Assets
under PMIERs 2.0 as it had on June 30, 2018 under the current
PMIERs, without a need to take further actions to do so. The
company’s expectation is based on its forecasted new insurance
written, its projections for ongoing positive operating results,
its strong capital position and the benefits of its reinsurance
programs.
“Radian is well positioned to maintain compliance with PMIERs
2.0, which provides a strong risk-based capital framework for our
mortgage insurance industry and helps us to support our customers
in providing affordable, sustainable homeownership opportunities,”
said Radian Chief Executive Officer Rick Thornberry.
The PMIERs 2.0 requirements may be found on the FHFA’s website
at www.fhfa.gov.
ABOUT RADIAN
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia,
provides private mortgage insurance, risk management products and
real estate services to financial institutions. Radian offers
products and services through two business segments:
- Mortgage Insurance, through its
principal mortgage insurance subsidiary Radian Guaranty Inc. This
private mortgage insurance helps protect lenders from
default-related losses, facilitates the sale of low-downpayment
mortgages in the secondary market and enables homebuyers to
purchase homes more quickly with downpayments less than 20%.
- Mortgage and Real Estate Services,
through its principal services subsidiary Clayton, as well as
Entitle Direct, Green River Capital, Red Bell Real Estate and
ValuAmerica. These solutions include information and services that
financial institutions, investors and government entities use to
evaluate, acquire, securitize, service and monitor loans and
asset-backed securities.
Additional information may be found at www.radian.biz.
FORWARD-LOOKING STATEMENTS
All statements in this report that address events, developments
or results that we expect or anticipate may occur in the future are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Exchange Act and the
U.S. Private Securities Litigation Reform Act of 1995. In most
cases, forward-looking statements may be identified by words such
as “anticipate,” “may,” “will,” “could,” “should,” “would,”
“expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,” “seek,”
“strategy,” “future,” “likely” or the negative or other variations
on these words and other similar expressions. These statements,
which may include, without limitation, projections regarding our
future performance and financial condition, are made on the basis
of management’s current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement. These statements
speak only as of the date they were made, and we undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
We operate in a changing environment where new risks emerge from
time to time and it is not possible for us to predict all risks
that may affect us. The forward-looking statements, as well as our
prospects as a whole, are subject to risks and uncertainties that
could cause actual results to differ materially from those set
forth in the forward-looking statements. These risks and
uncertainties include, without limitation, the possibility that we
may fail to estimate accurately our Available Assets and Minimum
Required Assets under PMIERs 2.0, which will be impacted by, among
other things, the size and mix of our insurance in force, the level
of defaults in our portfolio and the level of cash flow generated
by our insurance operations.
For more information regarding these risks and uncertainties as
well as certain additional risks that we face, you should refer to
the Risk Factors detailed in Item 1A of our 2017 Form 10-K, and to
subsequent reports filed from time to time with the SEC. We caution
you not to place undue reliance on these forward-looking
statements, which are current only as of the date on which we
issued this report. We do not intend to, and we disclaim any duty
or obligation to, update or revise any forward-looking statements
to reflect new information or future events or for any other
reason.
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version on businesswire.com: https://www.businesswire.com/news/home/20180928005155/en/
RadianEmily Riley – Phone: 215.231.1035Email:
emily.riley@radian.biz
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