Radian could report as much as $1.64/share in profits from over reserves of $217 million
Over the last weeks, I have analyzed Radian reserves for loan losses and determined that based on December 31, 2011 to September 30, 2012 Radian has reduced loans but failed to release approximately $217 million in reserves. As a result the reserve per loan has risen $2500 per loan default.
Radian is being conservative and holding reserves. However, Radian continues reducing its default inventory and has to release the analyzed reserves and any reserves held since September 30, 2012.
I have analyzed and come up with $1.64/share profits could be claimed on those reserves.