PHILADELPHIA, Oct. 25 /PRNewswire-FirstCall/ -- Radian Guaranty Inc. today
announced that a federal district court had affirmed its position regarding
the commercial nature of mortgage insurance transactions, and that the order
supports keeping the mortgage process fast and efficient for consumers.
The ruling, in the United States District Court for the Eastern District
of Pennsylvania, found that mortgage insurance transactions between mortgage
lenders and mortgage insurers are not consumer credit actions and are not
subject to the notice requirements of the Fair Credit Reporting Act (FCRA).
"This court order is a big win for consumers," said Roy J. Kasmar,
President and Chief Operating Officer of Radian. "Mortgage transactions are
consumer transactions, and we at Radian work with our lender clients to help
consumers by reducing costs and increasing efficiency. Requiring mortgage
insurers to issue adverse action notices to borrowers would not only be
inconsistent with the FCRA, it would also disrupt the critical lender-borrower
relationship, making the mortgage process unnecessarily complex and confusing
for consumers."
The ruling was issued in response to a class action lawsuit that claimed
Radian failed to issue an adverse action notice to a customer of one of
Radian's mortgage lending clients, when the customer's credit history
disqualified them from receiving a lower mortgage insurance rate.
Radian successfully argued that it does not take adverse action under the
FCRA when it sells mortgage insurance to its mortgage lending clients, and
that it does not enter into credit transactions with individual borrowers
About Radian Guaranty Inc.
Radian Guaranty Inc. is the mortgage insurance subsidiary of Radian Group
Inc. (NYSE: RDN), a global credit enhancement company headquartered in
Philadelphia. Radian Guaranty provides risk management products and services
to mortgage lenders nationwide; these services increase opportunities for
people to buy homes with little or no downpayment, protect lenders from
default-related losses on residential first mortgages and facilitate the sale
of low-downpayment mortgages in the secondary market. Additional information
may be found at http://www.radian.biz.
SOURCE Radian Guaranty Inc.
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Related links:
http://www.radian.biz
CONTACT:
Investors: Mona Zeehandelaar, Radian,
+1-215-231-1674, mona.zeehandelaar@radian.biz, or Media: Radian
Corporate Communications, +1-888-NEWS-520, media@radian.biz
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