PHILADELPHIA-Radian Group Inc. stated in a regulatory filing that its Radian Guaranty unit, which provides private mortgage insurance to protect lenders from default-related losses, might need additional capital if Fannie Mae and Freddie Mac tighten their regulations.
Bolstered by the recovery in housing, Radian Group's stock has more than doubled in value in 2013. The company, headquartered in Philadelphia, raised capital this year in stock and bond offerings, according to Bloomberg.com.
“Eligibility requirements may include new capital standards for private mortgage insurers,” Radian stated in a regulatory filing on Friday. If the new rules now being discussed would include “more onerous” standards, “it is likely that we would need to provide additional capital support to, or arrange additional capital relief for, Radian Guaranty, including potentially, greater than anticipated capital contributions from Radian Group.”
Radian Chief Financial Officer Robert Quint said in a conference call that company fully expects to have the ability to comply with any requirements within the implementation timeframe. See story at Bloomberg.com.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
