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Radian Group Inc. Message Board

  • tommiegun53 tommiegun53 Dec 6, 2012 12:26 PM Flag

    Radian Over Reserved By $216 Million as of September 30, 2012

    Based on a default inventory of 94,841 v. December 31, 2011 total defaults of 110,861, there was a decline of 16,040 as of September 30, 2012. If Radian had released loan loss reserves to correspond with the decline in defaults, Radian would have released $417 million. The reserve per loan default was $26,007 as of December 31, 2011.

    Loan loss reserve of January 1, 2012 $3,248 million
    Balance as of Sept 30, 2012.. . $3,047 million
    Difference.. . .$201 million

    Over reserve amount is $216 million based what should have been released.
    A that could have been released equals $$417 million.
    Amount released from loan reserves equals $$201.
    Difference.. . .$216 million.

    However, Radian choose to hold onto the reserves and that caused the reserve per loan to rise to 28,561 from $26,007 at the beginning of the year.

    Sentiment: Strong Buy

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