Radian Guaranty sees delinquencies on insured loans decline
Delinquencies on mortgages insured by Radian Guaranty Inc. (RDN) fell slightly in May, suggesting the market may be stabilizing with fewer reports of distressed collateral backing the insured loans. The mortgage insurer began the month of May with 115,020 mortgages in delinquency and ended the month with 114,193. By the end of the month, Radian had 7,844 new delinquencies, but benefited from 5,217 loan cures, 2,613 paid-off loans and 841 rescissions and denials. Because the composition of Radian's delinquent loan inventory improved the past two months, the company saw improvements to reserves and loan-loss provisions. "This compares to previous quarters, when Radian's reserves were significantly and negatively impacted by a change in the composition of the delinquent loan inventory, resulting from the higher reserve associated with the aging of delinquent loans and loans moving into pending claim status," Radian said Friday. Write to Kerri Panchuk.