Radian Releases Monthly Operating Statistics for December 2020

Rhea-AI Summary

Radian Guaranty Inc. reported its December 2020 operating statistics, highlighting key credit performance metrics for its insured portfolio. The month's figures show a total of 4,659 new primary defaults, a slight decrease from November's 4,807 defaults. Cures for the month outpaced new defaults at (6,244), contributing to an ending primary default inventory of 55,537 loans, down from 57,176 in November. This performance indicates Radian's effective management during ongoing pandemic challenges, including forbearance impacts.

Positive

• Decrease in ending primary default inventory from 57,176 in November to 55,537 in December.
• Cures exceeded new defaults, showing effective resolution of past defaults.

Negative

• New defaults increased slightly from November's 4,807 to 4,659 in December, highlighting ongoing challenges.

Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., today released monthly operating statistics related to the credit performance of its insured portfolio for the month of December 2020. The information includes total new primary defaults, which include defaults under forbearance programs in response to the COVID-19 pandemic, as well as cures, claims paid and rescissions/denials. The information regarding new defaults and cures is reported to Radian Guaranty from loan servicers. The company considers a loan to be in default for financial statement and internal tracking purposes upon receipt of notification by servicers that a borrower has missed two monthly payments. Default reporting, particularly on a monthly basis, may be affected by several factors, including the date on which the loan servicer’s report is generated and transmitted to Radian Guaranty, the impact of updated information submitted by servicers and the timing of servicing transfers.

		December 2020		November 2020		October 2020
Beginning Primary Default Inventory (# of loans)		57,176		59,604		62,737
New Defaults		4,659		4,807		5,086
Cures		(6,244)		(7,183)		(8,140)
Claims Paid (1)		(44)		(54)		(78)
Rescissions and Claim Denials, net (2)		(10)		2		(1)
Ending Primary Default Inventory		55,537		57,176		59,604

(1)		Includes those charged to a deductible under pool insurance arrangements, as well as commutations.
(2)		Net of any previous rescissions and claim denials that were reinstated during the period. Such reinstated rescissions and claim denials may ultimately result in a paid claim.

About Radian

Radian Group Inc. (NYSE: RDN) is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, title, valuation, asset management and other real estate services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Visit www.radian.com to learn more about how Radian is shaping the future of mortgage and real estate services.

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FAQ

What were RDN's new primary defaults in December 2020?

RDN reported 4,659 new primary defaults in December 2020.

How many loans were in the ending primary default inventory for RDN in December 2020?

The ending primary default inventory for RDN in December 2020 was 55,537 loans.

What is the cure rate for RDN in December 2020?

RDN had (6,244) cures in December 2020, indicating more loans were cured than defaulted.

How does RDN's December performance compare to November 2020?

In December 2020, RDN saw a decrease in its ending primary default inventory from 57,176 in November to 55,537.