Responsible borrowers who remain on time with their monthly mortgage payments after refinancing through the Treasury's Home Affordable Modification Program can obtain cash awards through a new program launched by Radian Guaranty Inc (RDN).
The mortgage insurer said Tuesday it's launching the Responsible Homeowner Reward program. Under the initiative, the company will select qualified HAMP borrowers with Radian mortgage insurance to receive cash rewards every time they make a loan payment on time. The reward pot will be distributed when the borrower finally pays off the loan or refinances it.
The program will be administered by the Loan Value Group, which specializes in incentivizing consumer behavior by developing strategies for the private-lable mortgage market.
Radian will select the borrowers and then set up an account for them.
"We believe it's important to support responsible borrowers who modified their mortgages to try to keep their homes, by recognizing their efforts to remain current on their payments in these difficult economic times," said Scott Theobald, Radian’s chief risk officer. "Radian is committed to sustainable homeownership and we are pleased to offer the RH Reward program to our insured homeowners."