Radian Group (RDN)

[Enterprising Investor]

RDN Reports Third Quarter 2012 Financial Results (11/01/12)

– Writes $10.6 billion of new MI business in the third quarter alone, compared to $9.0 billion written in the first nine months last year –

– Improved risk-to-capital ratio of 20.1:1 –

PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today reported net income for the quarter ended September 30, 2012, of $14.3 million, or $0.11 per diluted share, which included combined losses from the change in fair value of derivatives and other financial instruments of $41.8 million and net gains on investments of $84.7 million. This compares to net income of $183.6 million, or $1.37 per diluted share, which included combined net gains from the change in fair value of derivatives and other financial instruments of $206.6 million and net gains on investments of $81.6 million, for the prior-year quarter. Book value per share at September 30, 2012, was $6.85.

"I am pleased with the strong progress we have made against our top priorities at Radian by writing new, high-quality mortgage insurance business and diligently managing our legacy risk,” said Chief Executive Officer S.A. Ibrahim. “In the third quarter, we successfully improved our risk-to-capital position and wrote more new business than we did throughout the first nine months of last year.”

Ibrahim continued, “Our new business volume coupled with the continued decline in our delinquent loan inventory has improved the credit composition of our mortgage insurance book and better positions Radian for a future return to profitability.”

CAPITAL AND LIQUIDITY UPDATE
• Radian Guaranty’s risk-to-capital ratio improved to 20.1:1 as of September 30, 2012, compared to 21.0:1 as of June 30, 2012, and 20.6:1 as of March 31, 2012. ? The improvement in the risk-to-capital ratio from June 30, 2012, was primarily driven by investment gains partially offset by a small level of operating losses.

-- Radian expects to remain below a 25:1 risk-to-capital ratio for the remainder of 2012. Based on this and existing waivers of other risk-based capital requirements in certain states, Radian expects to continue to write all of its mortgage insurance business in Radian Guaranty, its principal mortgage insurance subsidiary, during this period.

--In order to proactively manage its risk-to-capital position, Radian Guaranty entered into a quota share reinsurance agreement earlier this year with a third-party reinsurance provider. Radian agreed to cede 20 percent of new insurance written beginning with the business written in the fourth quarter of 2011, which represented $1.4 billion of ceded risk in force as of September 30, 2012. In August, Radian and the reinsurer mutually agreed to increase the amount of mortgage insurance risk ceded under the agreement to approximately $1.6 billion and last week agreed to the terms of a new quota share arrangement with incremental ceded risk expected to range between $750 million and $2 billion. This new arrangement remains subject to Freddie Mac approval, as was the case with the previous agreement.

-- As of September 30, 2012, Radian Guaranty’s statutory capital increased to $1.0 billion, compared to $923.5 million in the second quarter of 2012 and $919.9 million in the first quarter of 2012.

• Radian Group maintains approximately $330 million of currently available liquidity. There is approximately $80 million of the company’s outstanding debt due in February 2013.

THIRD QUARTER HIGHLIGHTS
• New mortgage insurance written (NIW) was $10.6 billion for the quarter, compared to $8.3 billion in the second quarter of 2012 and $4.1 billion in the prior-year quarter. ? The product mix of Radian’s NIW has continued the recent shift to an increased level of monthly premium business. Of the $25.4 billion in new business written in the first nine months of 2012, 66 percent was written with monthly premiums and 34 percent with single premiums. This compares to a mix of 61 percent monthly premiums and 39 percent single premiums in the first nine months of 2011.

-- The Home Affordable Refinance Program (HARP) accounted for $2.7 billion of insurance not included in Radian Guaranty’s NIW total for the quarter. This compares to $2.4 billion in the second quarter of 2012 and $762.0 million in the prior-year quarter. As of September 30, 2012, approximately eight percent of the company’s total primary mortgage insurance risk in force had successfully completed a HARP refinance.

-- NIW continued to consist of loans with excellent risk characteristics.

• The mortgage insurance provision for losses was $171.8 million in the third quarter of 2012, compared to $208.1 million in the second quarter and $276.6 million in the prior-year period. Mortgage insurance loss reserves were approximately $3.0 billion as of September 30, 2012, which was down from $3.2 billion as of June 30, 2012, and also as of September 30, 2011. First-lien reserves per primary default were $28,561 as of September 30, 2012, compared to $28,410 as of June 30, 2012, and $25,346 as of September 30, 2011.

• The total number of primary delinquent loans decreased by 4 percent in the third quarter from the second quarter of 2012, and by 14 percent from the third quarter of 2011. The primary mortgage insurance delinquency rate decreased to 12.6 percent in the third quarter of 2012, compared to 13.3 percent in the second quarter and 15.2 percent in the third quarter of 2011. The company’s primary risk in force on defaulted loans was $4.4 billion in the third quarter, compared to $4.6 billion in the second quarter and $5.2 billion in the third quarter of 2011.

• Total mortgage insurance claims paid were $272.4 million in the third quarter, compared to $263.4 million in the second quarter and $329.9 million in the third quarter of 2011. The company expects mortgage insurance net claims paid of approximately $250 million in the fourth quarter and $1.0 billion for the full-year 2012.
• Radian Asset Assurance Inc. continues to serve as an important source of capital support for Radian Guaranty and is expected to continue to provide Radian Guaranty with dividends over time. ? As of September 30, 2012, Radian Asset had approximately $1.1 billion in statutory surplus with an additional $700 million in claims-paying resources.

-- Radian Asset has paid a total of $384 million in dividends to Radian Guaranty since 2008, and expects to pay another dividend of approximately $40 million in 2013.

-- Since June 30, 2008, Radian Asset has successfully reduced its total net par exposure by 66 percent to $39 billion as of September 30, 2012, including large declines in the riskier segments of the portfolio.


CONFERENCE CALL

Radian will discuss these items in its conference call today, Thursday, November 1, at 10:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The call may also be accessed by dialing 800-398-9386 inside the U.S., or 612-332-0523 for international callers, using passcode 267306 or by referencing Radian.

A replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two and a half hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 267306.

In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian's website under Investors >Quarterly Results, or by clicking on http://www.radian.biz/page?name=QuarterlyResults.

ABOUT RADIAN

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

http://www.businesswire.com/news/home/20121101005426/en/Radian-Reports-Quarter-2012-Financial-Results

[RBKissMyAs]

Looking good. Nice rebound today.

[idkmybffjill]

Closed above 5 finally!!!!!!!

Hopefully, this will draw in some institutional investors. I still have a feeling we will have a loss in the Q3 earnings report, which might drive us back under $5.

[RBKissMyAs]

Since BZH did their F'd up R/S, I'm moving over here. Order set for 3.65 and waiting.

[Enterprising Investor]

RDN Releases Delinquency Data for September (10/10/12)

Writes $3.5 billion of new mortgage insurance business

Expects to maintain a risk-to-capital ratio below 25:1 in 2012

http://www.businesswire.com/news/home/20121010006513/en/Radian-Releases-Delinquency-Data-September

[Enterprising Investor]

Home prices rising fast, but gains could slow (10/02/12)

8:48PM EST October 2. 2012 - U.S. home prices are coming off the bottom faster than many expected.

Market researcher CoreLogic says prices were up 4.6% in August from a year ago, the largest year-over-year gain in six years. The report parallels others showing recent strengthening in home prices, which are still down about 30% from their 2006 peak.

Much of the recent increase is traceable to tightening supplies of homes for sale. In August, existing single-family home sales were up 9% year over year, but the supply of listed homes for sale was down 18%, according to the National Association of Realtors.

"Inventories drive prices," says Christopher Thornberg, an economist with Beacon Economics.

As home prices rise, more people will eventually list homes for sale. And as they do, price gains may slow, says Zillow economist Stan Humphries.

August was the sixth consecutive month that home prices were up on a month over month basis, CoreLogic says. That is a reversal from last fall, when prices were still falling.

CoreLogic expects September home prices were up 5% year-over-year, too. But, it says they likely slipped 0.3% in September from August as the summer season ended.

Still, the housing market lately has shown a forward momentum that was not evident last year or even last spring.

Last year, some housing experts thought home prices would keep falling through 2012. There were fears that lenders would flood the market with foreclosed homes, which would drive down prices as a result of the mortgage settlement between large lenders and federal and state officials.

Neither scenario has played out. What's more, low mortgage interest rates -- which last week reached an all-time low average of 3.4% for a 30-year fixed-rate loan -- and improved consumer confidence are helping demand.

"As people perceive that prices have bottomed, they're coming back into the market," says Mark Goldman, real estate expert at San Diego State University.

Rising prices are helping homeowners build equity. In the first half of this year, 1.3 million homeowners moved from being underwater -- owing more on their mortgages than their homes were worth -- into positive equity status, CoreLogic says.

More will cross that bar if prices continue to go up. That enables more people to sell or refinance into lower cost loans.

Zillow predicts that home prices will see "modest" appreciation for two to four years, given still high unemployment and the huge number of people who're still underwater.

Despite recent gains, more than one in five homeowners with a mortgage still owe more on their loans than their houses are worth, CoreLogic data shows. Zillow's data shows that more than 30% of homeowners are still underwater.

http://www.usatoday.com/story/money/business/2012/10/02/home-prices-rising/1608957/

[Enterprising Investor]

RDN Partners with Loan Value Group to Support Homeowners with Newly Modified Mortgages (10/02/12)

Eligible homeowners receive cash rewards for on-time mortgage payments with Responsible Homeowner Reward Program

PHILADELPHIA--(BUSINESS WIRE)--Radian Guaranty Inc., the private mortgage insurance subsidiary of Radian Group Inc. (NYSE:RDN), today announced it will begin offering a unique program, the Responsible Homeowner Reward (RH Reward®), to encourage borrowers, who recently modified their mortgages through the U.S. Department of the Treasury’s Home Affordable Modification Program (HAMP), to remain current on their new mortgage payments. HAMP is a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments.

Administered exclusively by Loan Value Group LLC, the RH Reward program pays cash rewards to eligible homeowners for making their mortgage payments on time. Radian selects eligible homeowners for enrollment in the program and a reward account is then established in their name that grows with each on-time mortgage payment, up to a maximum amount. The reward is paid in cash when the mortgage is refinanced or paid off and the homeowner pays nothing to participate, remaining eligible by simply making their mortgage payments on-time.

“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.”

“Our RH Reward program, which operates in nearly all 50 states, is designed to target and reduce negative equity for nearly 12 million underwater borrowers and has the proven ability to positively influence payment behavior – lowering default rates by more than 50% since 2010,” said Frank Pallotta, a Managing Partner with Loan Value Group. “We are pleased to be partnering with Radian and admire their commitment to homeownership in the communities they serve.”

About Radian Group Inc.

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk management products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-down payment mortgages in the secondary market. Additional information may be found at www.radian.biz.

About Loan Value Group LLC

Founded in 2008, Loan Value Group LLC is a large scale, turn-key provider of private label, residential mortgage incentive strategies that positively influence consumer payment behavior on behalf of residential mortgage risk owners and servicers. Based in Rumson, New Jersey, LVG is the creator and exclusive provider of the Responsible Homeowner Reward® program, named one of the "50 Best Inventions of 2010" by TIME Magazine.

Contacts

Radian Group Inc.
Emily Riley, 215-231-1035
[e-mail]
or
Loan Value Group LLC
Rosalia Scampoli, 212-537-5177, ext. 7
[e-mail]

http://www.businesswire.com/news/home/20121002005235/en/Radian-Partners-Loan-Group-Support-Homeowners-Newly

[idkmybffjill]

Usual price pattern it seems....Radian hits mid 4's/close to 5's, and then drops right back down. Glad I at least sold some covered calls this time lol.

[56Chevy]

Home Sales on Track to Hit 5-Year High

Published: Wednesday, 19 Sep 2012 | 12:32 PM ET
By: Diana Olick
CNBC Real Estate Reporter

http://www.cnbc.com/id/49089111

[56Chevy]

Citi is requiring that all correspondent loans with MGIC-issued mortgage insurance be purchased by 10/31/12.

This is HUGE news EI! MGIC is in deep #%@* here and that doesn't give them much time to fix it.

There were some very prominent people in the investing world betting on MGIC over RDN as to who would dominate the MI business.

Can you spell more market share for RDN?

The story just got better!!

[Enterprising Investor]

Provident not the only one turning off MTG.

Citi is requiring that all correspondent loans with MGIC-issued mortgage insurance be purchased by 10/31/12.

I am trying to find other examples.

[mrholty]

Don't disagree with that story but we see a slowly improving default picture, we see improved new sales numbers.

To me your statement tells me one of a few things.

1. RDN under-reserved more than its competitors who have fallen by the wayside and this will eventually catch them. I find this hard to believe as I doubt the states insurance boards would not be on this. If it was true the improving market may hide this as the recovery will dampen it. The only way to check for this will be underperformance vs their peers going forward. Something to watch for sure.
2. The entire housing market takes another correction. If so I have bigger issues to worry about. Banks are more levered than these guys and were the canary before the insurance guys.
3. General economic slowdown. - Again I have other worries.

Simply I think the market is ovestating the downside risk here.

[idkmybffjill]

mrholty, the biggest concern right now is whether Radian is severely under-reserved to pay claims (and whether the denials they have will come back and turn into valid claims)

[56Chevy]

Nobody on Ihub likes this company.

You can say that again! I read an article on Seeking Alpha recently that just trashes RDN.. so it's not just confined to Ihub... and yes being over a dime pps takes 95% of the Ihubbers out of the game. Go figure :~?

On my last post I took a few liberties and did a little RDN cheerleading which is something I rarely ever do. lol. I was reacting to a PM I recieved that EI and myself "never seem to like a stock we're in" and that we're "too serious"... so I wanted to show some enthusiasm and prove them wrong lol.

In all seriousness MH I owe my perseverance to EI because if there's one thing he drills home it's this - "If the story hasn't changed, stay with it"!..and the RDN story hasn't changed.

It has a real business with real, REAL sticky clients.
It is one of the few surviving players in the industry that you or I can buy equity in.

Perfectly said. Being an Insurance guy you understand the full meaning of what a "sticky" client means. Once they have a customer..he's there for a long time.

What's not to like eh!

[mrholty]

Chevy - Nobody on Ihub likes this company.

Its above $1.00 share, hell its above $.10 share.
It has a real business with real, REAL sticky clients.
It is one of the few surviving players in the industry that you or I can buy equity in.

I own it at higher price than your post in May but I think you did well for yourself.

[56Chevy]

Was RDN "on sale" back in May?

======================

56Chevy Friday, May 04, 2012 6:17:42 PM
Re: 56Chevy post# 205 Post # of 273

Did someone say RDN was ON SALE?

25K & 10K bought in the low @ $2.28

http://ih.advfn.com/p.php?pid=nmona&article=52292262

http://ih.advfn.com/p.php?pid=nmona&article=52292892

The stock moved up .15 to positive territory immediately after the sales.

=======================

...and 4 months later RDN remains on sale. Why? The story hasn't changed...only improved.

[56Chevy]

Radian Guaranty Introduces First Ever Mortgage Insurance Rate Quote App

Date : 09/12/2012 @ 8:00AM
Source : Business Wire
Stock : Radian Grp. Inc. (RDN)
Quote : 4.55 -0.25 (-5.21%) @ 8:00PM

Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc. (NYSE: RDN), today announced the availability of its new MI rate finder app, Radian Rates, in the App StoreSM.

The free app, which is the first of its kind in the MI industry available for iPhone® and iPad®, is a mobile version of the company’s existing online rate finder and offers lenders on-the-go access to quick and reliable Radian MI rate quotes.

App users simply input loan criteria and the app automatically calculates the MI rate for a variety of Radian products. Backed by the company’s published rates and guidelines, Radian Rates was designed for users to check eligibility and compare options to find the product that best fits their needs.

“We know our customers are busy,” said Brien McMahon, Radian’s chief franchise officer and head of sales. “That’s why we’re always looking for innovative ways to make doing business with Radian quicker and easier. With the Radian Rates app, our lending partners can access our rates in seconds, wherever they are. Investing in this type of technology further demonstrates our commitment to being the MI partner of choice for lenders.”

[....]

http://ih.advfn.com/p.php?pid=nmona&article=54139628

[parrot head]

lets hope $3 holds my friend. long term vision is key!

[56Chevy]

US Mortgage Applications Rose Last Week

Published: Wednesday, 12 Sep 2012 | 7:02 AM ET

Applications for U.S. home mortgages rose last week as demand for refinancing and new loans jumped, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 11.1 percent in the week ended Sept 7.

http://www.cnbc.com/id/48999370

[idkmybffjill]

If we hit $5 today, it will kick in institutional buyers.

[parrot head]

About to be crushed down to 3.75 before next major move. Careful if you're a trader guys. Im in rdn long... look at my posts. gla.

[Enterprising Investor]

RDN and MTG Investment Shares Surge as Mortgage Delinquencies Continue to Decline (9/10/12)

Five Star Equities Provides Stock Research on Radian Group and MGIC Investment

NEW YORK, NY--(Marketwire - Sep 10, 2012) - The number of U.S. mortgage delinquencies, borrowers who are past due by 60 days or more, have been steadily declining in 2012. TransUnion recently reported that the mortgage delinquency rate has declined for two consecutive quarters and has dropped almost 9 percent during the first half of the year. Five Star Equities examines the outlook for companies in the Property & Casualty Insurance Industry and provides equity research on Radian Group Inc. (NYSE: RDN) and MGIC Investment Corp. (NYSE: MTG).

Access to the full company reports can be found at:
www.FiveStarEquities.com/RDN
www.FiveStarEquities.com/MTG

The national mortgage delinquency rate fell to 5.49 percent in the second quarter of 2012. TransUnion reported that all but five states saw decreases between the first and second quarter.

"The economy has not grown at a robust rate, but it does continue to slowly improve and we believe the improvement in mortgage delinquencies will follow a similar pattern," said Tim Martin, group vice president of U.S. Housing in TransUnion's financial services business unit. "With steadying home prices, and mortgage interest rates remaining at extremely low levels, it appears that market conditions are set up to allow for further declines in the mortgage delinquency rate."

Five Star Equities releases regular market updates on the Property & Casualty Insurance Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

Radian Group provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. Shares of the company soared over 22 percent last Thursday after the company reported their delinquency data for August.

MGIC, the principal subsidiary of MGIC Investment Corporation, is the nation's largest private mortgage insurer as measured by $169.0 billion primary insurance in force covering 1.1 million mortgages as of March 31, 2012. At June 30, 2012, the percentage of loans that were delinquent, excluding bulk loans, was 12.51 percent, compared with 13.79 percent at December 31, 2011.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
www.FiveStarEquities.com/disclaimer

http://www.marketwire.com/press-release/radian-group-mgic-investment-shares-surge-as-mortgage-delinquencies-continue-decline-nyse-rdn-1699196.htm

[SaltyMutt]

I began following this stock when the pps was just a bit over $2.00 I had every intention to buy but for whatever reason never did. I think there is a reason why billions of people will never read a book about my investment strategy. lol

[56Chevy]

Radian Group Inc. : Radian Releases Delinquency Data for August
09/06/2012 | 08:05am US/Eastern

NYSE - 09/06 04:04:09 pm
$4.04 USD +22.42%

http://www.4-traders.com/RADIAN-GROUP-INC-14211/news/Radian-Group-Inc-Radian-Releases-Delinquency-Data-for-August-14492058/


*Very nice 22.4% gain today! RDN is by far the best horse in the Mortgage Insurance race. Go RDN!

[mykoll]

does not look good for MTG

[56Chevy]

Radian Declares Regular Quarterly Dividend on Common Stock

Date : 08/15/2012 @ 4:00PM
Source : Business Wire
Stock : Radian Grp. Inc. (RDN)
Quote : 3.4 -0.04 (-1.16%) @ 4:03PM

Radian Group Inc. today announced that the company’s Board of Directors approved a regular quarterly dividend on its common stock in the amount of $0.0025 per share, payable on September 6, 2012, to stockholders of record as of August 27, 2012.

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

http://ih.advfn.com/p.php?pid=nmona&article=53839216

[AugustaFriends]

Both about to take off big!!

[Enterprising Investor]

Mortgage Insurance Industry Looks to Rebound as Mortgage Delinquency Rate at a Three-Year Low (8/13/12)

Five Star Equities Provides Stock Research on MGIC Investment and Radian Group

NEW YORK, NY--(Marketwire - Aug 13, 2012) - Ever since the housing bubble collapsed and foreclosures soared, mortgage insurers have struggled to recoup their losses, leaving their books filled with large unpaid home loans. Things may be turning around for the industry as the U.S. housing market has begun to show signs of a long awaited recovery and with mortgage delinquencies currently at a three-year low. Five Star Equities examines the outlook for companies in the Property & Casualty Insurance Industry and provides equity research on MGIC Investment Corp. (NYSE: MTG) and Radian Group Inc. (NYSE: RDN).

Access to the full company reports can be found at:

www.FiveStarEquities.com/MTG

www.FiveStarEquities.com/RDN

Credit reporting agency TransUnion last week reported that mortgage delinquencies, holders behind payments by 60 days or more, have fallen to 5.49 percent in the second quarter, down from the 5.78 percent in the first quarter. The agency anticipates the delinquency rate to continue to fall this year, but not below 5 percent.

"The pace of improvement should pick up when we review third quarter results, helped by a few months of relatively good news on home prices, this year's resurgence in refinance activity related to HARP 2.0 and record low mortgage interest rates," says Tim Martin, group vice president of U.S. housing in TransUnion's financial services business unit.

Five Star Equities releases regular market updates on the Property & Casualty Insurance Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.FiveStarEquities.com and get exclusive access to our numerous stock reports and industry newsletters.

MGIC, the principal subsidiary of MGIC Investment Corporation, is the nation's largest private mortgage insurer as measured by $166.7 billion primary insurance in force covering 1.0 million mortgages as of June 30, 2012. MGIC serves lenders throughout the United States, Puerto Rico, and other locations helping families achieve homeownership sooner by making affordable low-down-payment mortgages a reality.

Radian Group Inc. provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. The company recently reported that new mortgage insurance written grew to $8.3 billion during the quarter, compared to $6.5 billion in the first quarter of 2012 and $2.3 billion in the prior-year quarter.

Five Star Equities provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. Five Star Equities has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at:
www.FiveStarEquities.com/disclaimer

http://www.marketwire.com/press-release/mortgage-insurance-industry-looks-rebound-as-mortgage-delinquency-rate-three-year-low-nyse-mtg-1689934.htm

[Enterprising Investor]

MGIC recovery threatened by Freddie Mac demands (8/07/12)

By Jochelle Mendonca and Sharanya Hrishikesh

Aug 7 (Reuters) - MGIC Investment Corp, one of the largest U.S. mortgage insurers, is caught between a weak housing market and a very big customer, raising questions about the future of the money-losing company that writes 20 percent of private mortgage guarantees.

For four years, MGIC stumbled through the housing crash, posting a string of losses, breaching capital ratios and being overtaken in almost every aspect of the business by rival Radian Group Inc.

Now its recovery plan, which involves writing new insurance through a newly capitalized unit to take advantage of an upturn in the housing market, is caught up in a $500 million dispute with Freddie Mac, the government-backed mortgage financier and a key counterparty on the mortgages MGIC guarantees.

Freddie Mac says it won't support MGIC's lucrative operations in seven major U.S. states, including California, Texas and Florida, until the dispute is settled.

MGIC has won the approval of its primary regulator, the Office of the Commissioner of Wisconsin (OCI), and the backing of the other big government-backed mortgage operator, Fannie Mae.

But Freddie holds the key and it wants the dispute, over loss limit policies that it bought from MGIC, settled before allowing it to write insurance in the seven states.

"If MGIC does not satisfy the requests of Freddie Mac, it could seriously limit the company's ability to write new insurance, and if it does settle it could further erode the capital position," said Barclays analyst Mark DeVries.

MGIC is rapidly losing the confidence of the markets. Its shares slid to an all-time low of 66 cents on Friday, its bond ratings have been downgraded, and the cost of insuring its debt has soared.


SORTING OUT THE OLD

MGIC said last week that Freddie had demanded that it settle a lawsuit MGIC had brought against it, add $200 million in new capital to its main unit, and get the OCI to allow the new unit's capital to be used to pay off old claims -- all by the end of the year.

MGIC, which said last week it that needed time to consider Freddie's demands, declined comment for this article. Freddie Mac declined comment on specifics of the dispute.

"We will continue to monitor MGIC to see if they meet our eligibility requirements as an approved mortgage insurer, and if they are in compliance with our terms and conditions," said Brad German, a spokesman for Freddie Mac.

MGIC desperately needs to operate its new unit, MGIC Indemnity Corp (MIC) in the seven states at issue.

They have accounted for 30 percent of its new business this year and the company fears that major lenders may refuse to do business with it if it cannot continue to operate nationally.

But if Milwaukee-based MGIC settles on Freddie's terms, its risk to capital ratio -- already beyond permissible limits at 30-to-1 -- may deteriorate still further, as it has not set aside a reserve for a possible settlement.

The risk is that MGIC could fall into the same hole as other mortgage insurers caught by the housing crisis. Old Republic International Corp and Triad Guaranty Inc have stopped writing new business and are running off their old insurance, while PMI Group Inc went bankrupt last year.


START AFRESH?

To continue operating, MGIC -- which had $166.7 billion in private mortgage insurance outstanding at the end of June -- needs not just to end the dispute with Freddie, but do so on friendly terms to get new business.

"While it is likely that MGIC and Freddie come to an agreement, it is not a given that these two firms continue a productive business relationship," said Jason Stewart, and analyst at brokerage Compass Point Research and Trading LLC.

MGIC needs Freddie Mac to sign off on the new unit.

If even one of the two big government-backed entities does not approve MIC, lenders will not know which of them will buy the mortgages until they have been issued and have mortgage insurance. The uncertainty may lead them to refuse to do business with MIC.

Should MGIC yield and agree to Freddie's terms, this will add to pressure on its bond ratings and risk profile.

Debt rating agency Standard and Poor's last week cut its rating on MGIC's two operating units by one notch to B-minus and said the outlook for the company was negative.

Liquidity concerns drove the cost of insuring MGIC's debt sky-high last week, to levels that meant it would cost as much to insure MGIC's debt over five years as it would if it defaulted.

"Freddie Mac has all the leverage, so my sense is that MGIC is going to have to put in at least the $200 million (in new capital) that Freddie wants and it could go beyond that," said a hedge fund manager, who no longer trades in MGIC shares but has been a long-time investor in other mortgage insurers. The manager declined to be identified for this story.

S&P estimated that MGIC would only have about $100 million in cash left over if it made the capital infusion. The company had about $900 million in outstanding debt, at face value, at the end of March.

Given the large claims on the holding company's slender purse, Compass Point's Stewart said "liquidity risk at the holding company remains a primary concern."

Private mortgage insurers like MGIC cannot count on the capital market to raise cash. Shares of MGIC, together with those of better-positioned rivals such as Radian Group and Genworth Financial have lost close to 90 percent of their value since the housing crisis began in 2007.

MGIC has offered three-way negotiations with Freddie and the OCI but even it if were to agree to Freddie's terms, its regulator has previously objected to suggestions that the insurer use the new unit's capital to pay off claims of the old.

The OCI has previously said this would encroach on its turf.

Some analysts say Freddie can't push too hard, as hobbling MGIC's lucrative new business could force it into run-off, where it just manages down its old business, and leave it with not enough money to pay out on past claims.

Previously optimistic analysts, like those at FBR Capital Markets, have thrown in the towel and downgraded their rating on MGIC's shares.

Just one analyst now has a buy rating on the stock, down from three a month ago. Six analysts have a hold, while one has a "sell" rating, according to Thomson Reuters Starmine.

http://in.reuters.com/article/2012/08/07/mgic-freddiemac-idINL4E8J632Y20120807

[delubo]

I do not quite understand, would you please explain?

[56Chevy]

Can you spell - GAINS - as in market share for RDN!

Provident Funding Slams the Door on MGIC Coverage

ByPaul Muolo
AUG 3, 2012 10:09am ET

Provident Funding Associates, the nation’s ninth largest residential originator, has told its correspondent sellers that it will no longer accept mortgage insurance from the troubled MGIC Corp.

In a memo sent to lenders Thursday the nonbank funder said it “will not purchase any loans containing mortgage insurance issued by MGIC with a note date after August 15th, 2012.”

It added: “Current correspondent pipeline loans with mortgage insurance issued by MGIC will be provisionally accepted...Additionally, all loans containing MGIC mortgage insurance must be purchased by Provident Funding no later than Sept. 15, 2012.”

A spokeswoman for MGIC had no comment Friday morning. After posting a large 2Q loss, MGIC’s shares are now trading under $1.

The privately held Provident is based in Burlingame, Calif., and has been growing its correspondent purchases significantly the past few quarters, according to figures compiled by National Mortgage News and the Quarterly Data Report.

http://www.originationnews.com/dailybriefing/Provident-Funding-banks-MGIC-mortgage-insurance-1031646-1.html

[56Chevy]

- Securities Registration Statement (simplified form) (S-3)

[....]

DESCRIPTION OF OUR CAPITAL STOCK

The following is a general description of our capital stock. The terms of our amended and restated certificate of incorporation and bylaws are more detailed than the general information provided below. You should read our amended and restated certificate of incorporation and bylaws, which are incorporated by reference as exhibits to the registration statement of which this prospectus forms a part.

Authorized and Outstanding Capital Stock

We are authorized to issue a total of 345,000,000 shares of our capital stock, with a par value of $0.001 per share. Of the authorized amount, 325,000,000 of the shares are designated as common stock and 20,000,000 of the shares are designated as preferred stock.

As of June 29, 2012 there were 133,520,514 shares of common stock issued and outstanding, and no shares of preferred stock were issued or outstanding.

http://ih.advfn.com/p.php?pid=nmona&article=53776344

[Enterprising Investor]

RDN Releases Delinquency Data for July (8/08/12)

http://www.businesswire.com/news/home/20120808005040/en/Radian-Releases-Delinquency-Data-July

[Enterprising Investor]

Rob Chrisman Commentary (8/03/12)

[...]

Private mortgage insurance is alive and well. It's been more than three years since mortgage insurance companies have insured as much in volume as they did in June. It's been even longer since policies in force increased. Mortgage insurers issued 34,169 policies for $9.459 billion during June. The last time dollar volume was that strong was in March 2009, when $9.859 billion in policies were written. June's total reflected activity at Mortgage Insurance Companies of America (MICA) members Genworth, MGIC, and Radian Guaranty. But the 2009 numbers additionally reflected volume from former MICA members PMI, RMIC, and United Guaranty. (Also current noticeably absent from MICA is Essent.) A year earlier, when data for PMI and Republic was still included, 24,161 policies were written for $4.769 billion. From Jan. 1 through July 31, mortgage insurers wrote 177,038 policies for $42.329 billion.

But all is not so rosy in the biz. MGIC Investment Corp.'s disclosure about a disagreement between its insurance regulator in Wisconsin and Freddie Mac (FHLMC) over how it uses capital sent its share price plummeting into possible de-listing status at the NYSE. Yesterday MGIC reported a $277 million second-quarter loss, down further from the $162 million loss suffered a year earlier. "Risk factors" are an important part of every MI company's reporting these days, and one of the risk factors involved MGIC Indemnity Corp., which was approved by Freddie Mac in January to conduct business in states where MGIC fell below required capital and couldn't obtain a waiver. Conditions of the agreement include a 20-to-one capital ratio for MGIC Indemnity. Industry followers know the status with MGIC, Freddie, the state of Wisconsin's Office of the Commissioner of Insurance, and the order that waives capital requirements until Dec. 31, 2013, but for more information you can read it at NothingUpMySleeve.

Conversely, AIG's UG (United Guaranty) "nearly quadrupled its operating income to $43 million in the quarter, as new delinquencies fell 17 percent. UGC, once seen as a peripheral asset, has become a core part of AIG's business as competitors stumbled and it gained market share." Insiders wonder about AIG (owned 61% by the U.S. Government) and paying back TARP money, but in the meantime: UG.

Lastly, a story out of the Richmond Times-Dispatch notes that "Genworth Financial's acting chief executive officer said a spinoff or sale of its struggling U.S. mortgage insurance business may not be viable at this time. Comments made Wednesday by Martin P. Klein, the interim CEO of the Henrico County-based insurer, drove shares down 11% in one day. Klein said that 'delinking' the mortgage insurance business from the company 'may not necessarily be the most cost effective or most beneficial option for investors or bondholders.' He said a sale or spinoff may not be viable at this time 'due to potential capital required to execute the transaction.' The company's U.S. mortgage insurance business has suffered repeated quarterly losses because of the housing market downturn. In June, hedge fund Highfields Capital Management LP increased its investment in Genworth and said it would discuss options for the mortgage insurance operations that could include a sale or spinoff. In an interview, Klein noted that the mortgage insurance business has seen narrowing losses and is expected to return to a profit this year. The unit posted a loss of $25 million in the second quarter compared with a loss of $255 million in the same period in 2011. The company said the number of new delinquencies declined."

[...]

http://www.robchrisman.com/

[globalprince]

Nice gain today!

[Enterprising Investor]

RDN Reports Second Quarter 2012 Financial Results (8/01/12)

–New MI volume triples in first half of 2012 compared to first half of 2011–

–Risk-to-capital ratio of 21.0:1–

PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN) today reported a net loss for the quarter ended June 30, 2012, of $119.3 million, or $0.90 per diluted share, which included combined losses from the change in fair value of derivatives and other financial instruments of $95.0 million. This compares to net income of $137.1 million, or $1.03 per diluted share, which included combined gains from the change in fair value of derivatives and other financial instruments of $193.8 million, for the prior-year quarter. Book value per share at June 30, 2012, was $6.75.

“We remain steadfast in executing against our strategy and on managing what we can control in this challenging macroeconomic environment,” said Chief Executive Officer S.A. Ibrahim. “Our success in growing our MI business and managing our capital is evident, as we tripled Radian’s volume of new business and leveraged the capital support of our financial guaranty business to maintain a competitive risk-to-capital ratio of 21.0 to 1.”

Ibrahim continued, “We are encouraged by the continued improvement in our legacy MI portfolio as our number of delinquent loans decline steadily. The improving composition of our overall MI book helps position Radian for future success and a return to profitability.”

CAPITAL AND LIQUIDITY UPDATE

• Radian Guaranty’s risk-to-capital ratio was 21.0:1 as of June 30, 2012, compared to 20.6:1 as of March 31, 2012, and 21.5:1 as of December 31, 2011.

The slight change in the risk-to-capital ratio from March 31, 2012, was primarily driven by the increase to the company’s net risk in force resulting from increased volume of new, high-quality mortgage insurance business.

Earlier this year, Radian Guaranty entered a quota share reinsurance arrangement to proactively manage its mortgage insurance risk-to-capital position. Radian ceded 20 percent of its new mortgage insurance written beginning with the fourth quarter of 2011, which benefited its risk-to-capital position in the second quarter and represented $922 million of ceded risk in force as of June 30, 2012.

As of June 30, 2012, Radian Guaranty had $923.5 million of statutory capital, compared to $919.9 million in the first quarter of 2012 and $1.0 billion in the prior-year quarter.

• Radian Group maintains approximately $340 million of currently available liquidity. Since the end of the first quarter, the company has purchased an additional $24 million of its debt maturing in February 2013 at a discount to face value. There is currently $80 million of remaining debt outstanding and due in February 2013.

• In the event that Radian Guaranty exceeds the risk-based capital requirements imposed by certain states, the company has the ability to continue writing new mortgage insurance business in those states through a combination of state-specific waivers or similar relief and by writing business in its subsidiary, Radian Mortgage Assurance Inc. (RMAI), which has been approved by Fannie Mae and Freddie Mac as an eligible mortgage insurer.

SECOND QUARTER HIGHLIGHTS

• New mortgage insurance written (NIW) grew to $8.3 billion during the quarter, compared to $6.5 billion in the first quarter of 2012 and $2.3 billion in the prior-year quarter.
The product mix of Radian’s NIW has continued the recent shift to an increased level of monthly premium business. Of the $8.3 billion in new business written in the second quarter, 67 percent was written with monthly premiums and 33 percent with single premiums. This compares to a mix of 64 percent monthly premiums and 36 percent single premiums in the first quarter of 2012, and 57 percent monthly premiums and 43 percent single premiums in the fourth quarter of 2011.

The Home Affordable Refinance Program (HARP) accounted for $2.4 billion of insurance not included in Radian Guaranty’s NIW total for the quarter. This compares to $929.9 million in the first quarter of 2012 and $553.7 in the second quarter of 2011.

NIW continued to consist of loans with excellent risk characteristics.

In addition, Radian wrote approximately $3.4 billion in NIW in July 2012.

• The net loss for the second quarter was $119.3 million, which included combined losses from the change in fair value of derivatives and other financial instruments of $95.0 million. The largest component of the combined losses of $95 million was a $108 million loss recorded on the April commutation of Radian Asset Assurance’s large CDO of ABS and certain TruPs CDO exposures further explained below. In addition, the quarter’s results included investment gains and a reduced level of operating losses compared to recent prior periods. Results for the second quarter of 2011 included a pre-tax gain recognized on derivatives and other financial instruments of $193.8 million, resulting mainly from a widening of Radian’s credit spread that significantly reduced the fair value of the company’s derivative liabilities.

• The mortgage insurance provision for losses was $208.1 million in the second quarter of 2012, compared to $234.7 million in the first quarter and $270.0 million in the prior-year period. Mortgage insurance loss reserves were approximately $3.2 billion as of June 30, 2012, which was flat to the first quarter and down slightly from $3.3 billion a year ago. First-lien reserves per primary default increased to $28,410 as of June 30, 2012, compared to $27,833 as of March 31, 2012, and $25,334 as of June 30, 2011.

• The total number of primary delinquent loans decreased by 4 percent in the second quarter from the first quarter of 2012, and by 12 percent from the second quarter of 2011. The primary mortgage insurance delinquency rate decreased to 13.3 percent in the second quarter of 2012, compared to 14.1 percent in the first quarter and 15.2 percent in the second quarter of 2011.

• Total mortgage insurance claims paid were $263.4 million, compared to $218.2 million in the first quarter and $512.6 million in the second quarter of 2011. The company continues to expect mortgage insurance net claims paid of approximately $1.1 billion for the full-year 2012.

• Radian Asset Assurance Inc. continues to serve as an important source of capital support for Radian Guaranty and is expected to continue to provide Radian Guaranty with dividends over time.

As previously disclosed, Radian Asset paid an ordinary dividend of $54.0 million to Radian Guaranty in July 2012. Radian Asset has paid a total of $384 million in dividends to Radian Guaranty since 2008, and expects to pay another dividend of approximately $40 million in 2013.

As of June 30, 2012, Radian Asset had approximately $1.2 billion in statutory surplus with an additional $600 million in claims-paying resources.

On April 11, 2012, as previously disclosed, Radian Asset successfully executed a commutation of its distressed CDO of ABS transaction. The company expected to pay claims for substantially all of the $450.2 million of net par outstanding on this transaction. Radian Asset also commuted its credit protection on six directly insured TruPs CDO transactions, representing $699.0 million of net par outstanding. In consideration for these commutations, Radian Asset paid $210.0 million, a significant portion of which has been deposited with a limited purpose vehicle to cover potential future losses on the terminated TruPs bonds. As previously reported, the fair value liability on the transactions prior to the commutations was impacted by Radian’s credit spread, therefore the company recognized a $108 million GAAP loss on these transactions in the second quarter, as anticipated.

As previously reported, Radian Asset released $55 million of contingency reserves in May, which benefited Radian Guaranty’s statutory capital position in the second quarter.

Radian Asset completed the sale of Municipal and Infrastructure Assurance Corporation (MIAC) in the second quarter for a gain of $7.7 million.

Since June 30, 2008, Radian Asset has successfully reduced its total net par exposure by 64 percent to $41.5 billion as of June 30, 2012, including large declines in the riskier segments of the portfolio.


CONFERENCE CALL

Radian will discuss these items in its conference call today, Wednesday, August 1, 2012, at 11:00 a.m. Eastern time. The conference call will be broadcast live over the Internet at http://www.radian.biz/page?name=Webcasts or at www.radian.biz. The call may also be accessed by dialing 800-288-8961 inside the U.S., or 612-288-0337 for international callers, using passcode 254001 or by referencing Radian.

A replay of the webcast will be available on the Radian website approximately two hours after the live broadcast ends for a period of one year. A replay of the conference call will be available approximately two and a half hours after the call ends for a period of two weeks, using the following dial-in numbers and passcode: 800-475-6701 inside the U.S., or 320-365-3844 for international callers, passcode 254001.

In addition to the information provided in the company's earnings news release, other statistical and financial information, which is expected to be referred to during the conference call, will be available on Radian's website under Investors >Quarterly Results, or by clicking on http://www.radian.biz/page?name=QuarterlyResults.

ABOUT RADIAN

Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides private mortgage insurance and related risk mitigation products and services to mortgage lenders nationwide through its principal operating subsidiary, Radian Guaranty Inc. These services help promote and preserve homeownership opportunities for homebuyers, while protecting lenders from default-related losses on residential first mortgages and facilitating the sale of low-downpayment mortgages in the secondary market. Additional information may be found at www.radian.biz.

http://www.businesswire.com/news/home/20120801005592/en/Radian-Reports-Quarter-2012-Financial-Results

[parrot head]

Don't hold your breath. I'm in this for atleast 3 years based on a few factors, lowering delinquincies, new business, housing/unemployment turn-around. If these happen, the HUGE lol, dips from $4 to $2 will be laughable. gl.

[idkmybffjill]

you are 0 for 6 on your predictions lol. Remember what happened last time it went past 4? went right back down to the 2's :'(

[Enterprising Investor]

Radian Releases Delinquency Data for June (7/09/12)

http://www.businesswire.com/news/home/20120709005139/en/Radian-Releases-Delinquency-Data-June

The product mix of Radian’s NIW has continued to shift to an increased level of monthly premium business. Of the $8.35 billion in new business written in the second quarter, 67 percent was written with monthly premiums and 33 percent with single premiums. This compares to a mix of 64 percent monthly premiums and 36 percent single premiums in the first quarter of 2012, and 57 percent monthly premiums and 43 percent single premiums in the fourth quarter of 2011.

Radian Asset Assurance Inc. continues to serve as an important source of capital support for Radian Guaranty and is expected to continue to provide Radian Guaranty with cash infusions over time. In July, Radian Asset paid an ordinary dividend of $54 million to Radian Guaranty and expects to pay another dividend in 2013.

[907money]

Looking for the run up starting this week, nice little gains and little pulls for weeks, .20 cent gain tomorrow, June numbers to follow pushing it to 3.80's, pull back and then up over 4, upgrade to follow and we are off

[geo58]

RDN YEP Getting ready to climb to the next level,FOURTH FLOOR PLEASE.

[907money]

Loaded up on the dip today, bring the numbers!

[StocksRockStar]

need to break through that 3.3 resistance then its on!!!

[56Chevy]

The index of pending home sales in May surged 5.9 percent to 101.1, the highest level in two years, according to data from the National Association of Realtors. A report from the U.S. Commerce Department earlier this week showed that sales of new single-family homes jumped 7.6 percent in May, also a two-year high. New home sales rose to an annual rate of 369,000 last month from 343,000. According to analysts surveyed by MarketWatch sales were expected to be at an annual rate of 348,000.
"This improvement adds to the recent flow of good news on the housing sector, reinforcing our view that this beleaguered sector is finally on the mend," Millan Mulraine, a senior U.S. strategist at TD Securities, said in an email to clients.

[907money]

RDN and MTG ready to move

[geo58]

RDN hold your tickets boys!

[dominik2]

Now that's some iffy shizny

[idkmybffjill]

Anyone notice the management compensation document that was filed last week? I didn't get time to read it quickly, but it appears that management compensation is heavily tied to share price performance.

[56Chevy]

Ok let me come at this another way.

Definition of 'Trader'

An individual who engages in the transfer of financial assets in any financial market, either for themselves, or on behalf of a someone else. The main difference between a trader and an investor is the duration for which the person holds the asset. Investors tend to have a longer term time horizon, whereas traders tend to hold assets for shorter periods of time in order to capitalize on short-term trends.

Investopedia explains 'Trader'

One main problem with engaging in short-term trading is commission costs. Because traders frequently engage in short-term trading strategies to chase after profit; they often rack up large commission fees. However, an increasing number of highly competitive discount brokerages has made this cost less of an issue.

http://www.investopedia.com/terms/t/trader.asp#axzz1xe7QlM9g


RDN is on sale. I hope you do well either way ;)

[geo58]

Were all traders to one degree or another,This one has something for every one!