Radian Group sees slight drop in delinquencies
Radian Group (RDN) saw its delinquent mortgage inventory fall from 111,434 loans at the beginning of July to 110,607 at the end of the month. Meanwhile, the mortgage insurer wrote $1 billion in new business last month. Last week, the company reported second-quarter income of $137.1 million, or $1.03 a share, buoyed by changes in the fair value of derivatives and other financial instruments. For the year-ago quarter, Radian reported a loss of $475.1 million, or $4.31 a share, due to the value of derivatives that swung in a negative direction, eating into profits. In July, nearly 8,100 loans insured by Radian moved into delinquency, while 5,820 were cured and 2,430 were paid. The Philadelphia-based firm faced a tough week on Wall Street, with mortgage insurance stocks plummeting as much as 20% after Standard & Poor's lowered the nation's debt rating. Radian's stock was trading down nearly 30% Monday to a new 52-week low before bouncing back somewhat before close. Write to: Kerri Panchuk.