Mortgage insurer Radian (RDN) struck a deal with Freddie Mac over 25,760 delinquent loans, agreeing to cap the firm’s exposure at $840 million, Seeking Alpha reported.
The mortgage insurer had already paid $370M and paid about $255M to Freddie upon the agreement – another $205M has been deposited into a collateral account to cover any further losses.
"One of our top priorities for our mortgage insurance business is to actively reduce our legacy exposure," says Radian CEO S.A. Ibrahim, noting the agreement reduces total primary loans by 12.6%.
