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Radian Group Inc. Message Board

  • tommiegun53 tommiegun53 Dec 1, 2012 12:17 PM Flag

    Radian releases $424 million in loans from default inventory throught October 2012

    The total loans cleared from default inventory is 15,873. The loans have been paid or cleared otherwise.

    On December 7, Radian will report the latest progress in removing loans off of the list.

    Inspite of either paying loans or rescinding or on small level, denying loans. While removing loans from default cost money, Radian has been able maintain a risk to capital of 20 to 1.

    Sentiment: Strong Buy

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    • After of the November release of 1,160 loans released from default inventory, the total for the year is 17,033. Multiply loan reserve of $28,561 X 17,033 equals $486.5 million total ytd as of November 2012 released from reserve for loan loss reserves.

      Sentiment: Strong Buy

    • I knew Radian would start making moves with all the cash.

      Sentiment: Strong Buy

    • Hi tommie, thank you for the info! Your DD is always fantastic. In regards to that, i was hoping/wondering if you could help me out.... I'd like to speak with you privately, had some questions about Radian that I'm compiling for a stock pitch. I don't know your email but mine is my username on here at yahoo, Can you shoot me a message?

    • Expect delinquency inventory to end the year at around 90,000.

      Sentiment: Strong Buy

    • Correction: Radian increased it's per loan reserve during Q3 to $28,561. So, $28,561 X 15,873 equals $453.3 million in loans paid through October 2012.

      This data was from Radian Monthly Data reports and Radian SEC 10-Q dated September 2012.

      Sentiment: Strong Buy

      • 1 Reply to tommiegun53
      • Total paid claims
        Nine months 2012.. . $ 754 million
        Nine months 2011 . . $1,208 million
        Of the $754 million in paid claims 2012 only $3.2 million was for the current year.

        Radian expects to pay claims totaling $250 million in Q4. This year Radian initially estimated that claims would total $1.3 billion but, claims actually came in nearly $300 million less due an improved real estate market and a better than expected US economy.

        Radian has rescinded or denied loans that may be reinstated once the servicers can prove that the loans were underwrote with stated guidelines used in insuring the loans. This a partial list of items missing from the files:
        No appraisal or partial appraisal when full appraisals required
        No income verification
        No assets verification
        Calculated debt to income ratio does not match
        Loan to values of property does match type of loan granted
        Income verified does match income used to debt to income calculations
        Miscellaneous title insurance violations
        Incorrect signatures on documents
        Underwriting guidelines not followed on cloaking documents
        Etc.

        All violations on loans increase loan risk of default for Radian and will not be overlooked as per Radian management.

        Radian maintains adequate reserves to pay loans and did not release reserves for loans defined at higher rate of the last few quarters and, the servicers have six months to respond with appropriate documents.

        Reserves as of September 30, 2012 $3,047 million
        Reserves as of September 30, 2011 $3,215 million

        Sentiment: Strong Buy

    • tommie, how did you calculate the $424 million amount? I ask out of curiosity.

      Sentiment: Strong Buy

 
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