Radian Guaranty, the mortgage insurance subsidiary of Radian Group (RDN), announced an expansion of its MortgageAssure mortgage insurance program, which will pay a borrower’s mortgage if they suffer an involuntary job loss and fall behind on their mortgage payments for up to six months.
Previously, the program was automatically provided to borrowers at no additional cost for Radian-insured loans for primary, owner-occupied, single-family homes with loan-to-value ratios between 95.01% and 97%.
Citing the “overwhelmingly enthusiastic feedback” the program has received, Radian announced an expansion to the program. Under the expansion, Radian will now provide MortgageAssure to all Radian-insured loans at any LTV from its credit union partners.
“Designed to increase interest in high-LTV conventional financing, while offering a level of default protection that benefits the member, lender, and Radian Guaranty, MortgageAssure has been well received throughout the home-buying community,” Radian said in a statement.
“With the overwhelmingly enthusiastic feedback MortgageAssure has generated, Radian recognized its responsibility to increase the product’s availability, particularly at a local level where it can make the greatest impact and is pleased to offer MortgageAssure at any LTV to its community-focused credit union partners to help them provide greater value in their surrounding communities,” Radian continued.
Under the program, if a participating homeowner falls behind on their mortgage payments due to an involuntary job loss and meets the conditions of the program, Radian MortgageAssure will provide up to six monthly mortgage payments, with a maximum monthly benefit of up to $1,500, or total protection of $9,000, during the two-year coverage period.
The expanded MortgageAssure is effective for loans issued after Oct. 1.
“With Radian MortgageAssure, we are not only offering homeowners the comfort of getting back on their feet, but also making it easier for lenders to approve new loans in uncertain economic times," Teresa Bryce Bazemore, president of Radian Guaranty, said when the program was initially announced. "It is a win-win for everyone working to further the American dream of sustainable homeownership."