WAYNE, PA — Radian Guaranty Inc., a leading mortgage insurance subsidiary of Radian Group Inc. (NYSE: RDN), has confirmed that recent updates to the Private Mortgage Insurer Eligibility Requirements (PMIERs) will have a negligible effect on its capital position and investment strategy. These updates, issued by Fannie Mae and Freddie Mac, refine standards for the assets mortgage insurers can use to pay claims.
Radian Guaranty reports that its Available Assets amounted to $6.0 billion as of June 30, 2024, with a cushion of $2.2 billion over the required minimum. The PMIERs updates are expected to reduce these available assets by less than 0.3%, or around $20 million, by March 31, 2025. This minimal impact assures that Radian’s investment portfolio strategy remains unchanged, with adjustments continuing in line with normal business operations.
The updates also modify the treatment of loans under COVID-19 forbearance plans. Effective March 2025, these loans will revert to standard non-performing loan requirements. Radian anticipates a modest increase in Minimum Required Assets by less than $10 million due to this change.
Rick Thornberry, CEO of Radian, stated, “PMIERs has been a valuable capital framework for our industry, promoting the consistent, transparent, and reliable financial strength of private mortgage insurers through various credit cycles.” He added that the company’s collaboration with GSEs and the FHFA continues to facilitate access to mortgage credit and support affordable homeownership.
Radian’s proactive approach to these regulatory updates reflects its strategic resilience and commitment to maintaining robust financial health amid changing industry standards.
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