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Radian Group Inc. Message Board

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  • slickvguy slickvguy Nov 2, 2007 8:59 PM Flag

    Radian making all the right moves

    "One potential concern is the risk that current MI business, which is apparently very good, could come back to haunt them if housing prices plummet substantially from here. I know that the company said the new business was more solid, but I would like to hear more about the potential downside of writing new business at this juncture. "

    Yes, but what choice do they have? What do you expect them to do? Stop writing new insurance? No can do.
    This is the smartest thing to do - push it out as far as possible and pray for a recovery. lol. Seriously though, this is the best way. New premiums paying for old claims.

    When you look at the NIW, in some ways they are being quite a bit more conservative, while in others not so much. Without question, they are getting back to basics. Structured is down to very low amounts. Flow was 90.8% of Q3 NIW. Yet within that flow, 9.7% was still at A- or below (though with higher FICOs). Of the structured they wrote, 78.4% was prime. Good. However a whopping 31% of NIW was >= 95% LTV. Eek! NIW ARMs less than 5 years was only 4%, which brings the total of ARMs < 5 years to 14%. Pretty good.

9.79+0.07(+0.72%)10:01 AMEDT