DS News - Digital Archives

» reduce our legacy exposure," said Radian's CEO, S.A. Ibrahim. "This agreement is an important step in resolving our remaining legacy risk." According to Ibrahim, the arrangement with the GSE reduces Radian's total number of primary delinquent loans by 12.6 percent. Radian Guaranty paid approximately $255 million to Freddie Mac to cover claim exposure on these loans—that's in addition to the $370 million of claims Radian had previously paid on the loans. The mortgage insurer also deposited $205 million in a collateral account to cover loss mitigation activity on the loans in question. Funds in the collateral account will be released to Radian Guaranty to the extent the company rescinds, denies, or curtails these loans and the amounts become final under the agreement. As of July 31, the amount of insurance rescissions, claim denials, or claim curtailments that had become final in accordance with the agreement was approximately $10 million. In addition, at the end of July, another $140 million of submitted claims had been rescinded, denied, or curtailed but were not considered final under the agreement. If the loss mitigation activities do not accumulate to $205 million, any remaining funds will be paid to Freddie Mac. Radian expects to record an incurred loss of approximately $20 million in the third quarter in connection with the transaction, but the company says that will be fully offset by the resulting reduction of incurred losses in future periods from the elimination of exposure to re-performing loans covered by the transaction that may redefault and ultimately become claims. Subsequent to the agreement with Freddie, Radian reported that its delinquent inventory fell by 11,715, or 15.2 percent, in August to end the month at 65,427. Aside from the arrangement with the GSE, which removed the private mortgage insurer's exposure to 9,756 loans that were delinquent as of December 31, 2011, and 4,586 re-performing loans, there were 4,909 cures in August and 1,635 loans marked as paid. On the other hand, the month saw 4,457 new delinquencies and 128 rescissions and denials. VISIT US ONLINE @ DSNEWS.COM Rhode Island rank: 12 90+ Day Delinquency Rate Foreclosure Rate July 2013 4.3% Unemployment Rate 3.1% 8.9% year ago 4.0% 4.1% 10.5% year-over-year change 8.7% -24.8% -15.2% Top County PRovIdenCe CounTy 90+ Day Delinquency Rate Foreclosure Rate July 2013 5.4% 3.7% year ago 4.9% 5.0% year-over-year change 9.2% -26.1% Top Core-Based Statistical Area PRovIdenCe-new BedfoRd-fAll RIveR, RI-MA 90+ Day Foreclosure Delinquency Rate Rate July 2013 4.6% 3.0% year ago 4.0% 4.1% year-over-year change 14.5% -25.7% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the July 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary July 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. South Carolina rank: 17 90+ Day Delinquency Rate Foreclosure Rate July 2013 2.4% Unemployment Rate 3.0% 8.1% year ago 2.6% 4.4% Start your day with a professional pick-me-up. 9.2% year-over-year change -7.8% -33.2% -12.0% Top County HampTon CounTy 90+ Day Delinquency Rate July 2013 3.9% Foreclosure Rate 6.9% year ago 4.6% 8.8% Start your day with the most current and critical news on the mortgage default servicing industry from DSNews.com. Sign up for our e-mail newsletter and get the top stories delivered direct to your inbox every day. year-over-year change -16.9% -22.2% Top Core-Based Statistical area orangeBurg, SC 90+ Day Delinquency Rate Foreclosure Rate July 2013 KNOW THIS 4.4% 5.1% year ago Of the GSEs' delinquent loans in Pennsylvania, nearly a third—29.1%—are past due by more than 365 days. 4.6% 6.1% year-over-year change -4.9% -16.4% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the July 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary July 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Register to receive your Daily Dose at DSNews.com 91

• Cover