Over the last several months, private mortgage insurer Radian Group has undertaken a restructuring effort in its services business, which is conducted through its principal subsidiary Clayton, and Clayton’s subsidiaries: Green River Capital, Red Bell Real Estate and ValuAmerica.
The changes, which included jettisoning Jeff Tennyson as president of both Radian’s services business and Clayton, were in response to Clayton’s “recent underperformance below expectations.”
At the time, the company said the purpose of the changes was to “reposition the segment for sustained profitability by focusing on the core products and services that Radian believes have higher growth potential, produce more predictable and recurring fee-based revenues, and better align with customer needs.”
On Wednesday, the company announced the latest move in its restructuring efforts – selling Clayton EuroRisk, a provider of outsourced mortgage services in Europe.
The buyer is an unnamed “global investment firm” and Radian did not disclose the financial details of the deal.
According to details provided by Radian, Clayton EuroRisk provides services including due diligence services, quality control reviews, valuation reviews and consulting services to mortgage originators, servicers, and investors in performing and non-performing mortgage loans.
As a result of the sale, Radian no longer offers products and services for its mortgage and real estate services business in Europe, the company said in a release.
According to Radian, the sale is “consistent with Radian’s strategy to reposition its Services segment for sustained profitability, by focusing on offering the products and services that are core to the services business.”
In a statement, Radian Chief Executive Officer Rick Thornberry said the deal should be beneficial for all parties involved.
“We are pleased with this transaction, and look forward to a seamless transition for our customers, partners and EuroRisk employees,” Thornberry said. “At Radian, we continue to sharpen our focus and make progress against our goal of transforming our company into one that is even more cohesive and profitable.”