ORLANDO, Fla., Oct. 26 /PRNewswire-FirstCall/ -- Radian Guaranty, a
provider of mortgage insurance products and services and subsidiary of global
credit enhancement provider Radian Group Inc. (NYSE: RDN), announced that its
recently introduced SplitEdge product will now cover loans originated by state
and local housing agencies.
This new application for SplitEdge gives housing agencies another way to
help low-income or credit-challenged homebuyers reduce their monthly mortgage
insurance (MI) payments. Radian's Emerging Markets group will be working with
housing agencies to implement the most effective application of SplitEdge.
Traditionally, homebuyers with less than a 20% downpayment purchase
mortgage insurance in order to secure a mortgage loan. The homebuyer
typically pays for the insurance through monthly installments. SplitEdge
allows for a one-time, upfront MI payment -- which can be .75%, 1.00%, or
1.25% of the total mortgage loan -- that significantly lowers the monthly MI
installments that the homebuyer must pay. The one-time, upfront payment can
be paid on behalf of the homebuyer by an approved third-party, including
family members, homebuilders, non-profit organizations, or even a housing
agency. That flexibility can greatly benefit state and local housing agencies
and their customers.
State and local housing agencies help a large, often underserved segment
of the population obtain affordable mortgage loans which usually require low
or no downpayment. Those loans traditionally have been insured by government
programs such as the Federal Housing Authority (FHA). Radian's SplitEdge
offers housing agencies a practical alternative to FHA mortgage insurance.
This gives the housing agency another innovative financing solution to offer
its customers.
"We are excited to offer homebuyers the advantages of Radian's SplitEdge
mortgage insurance product," said Brian A. Hudson, Sr., executive director and
CEO of the Pennsylvania Housing Finance Agency. "The added affordability
offered by SplitEdge works well with PHFA's low interest rates and fees. We
believe this product will help more PHFA homebuyers attain the dream of
homeownership."
SplitEdge for Emerging Markets is designed to meet the financial needs of
homebuyers who wish to lower their monthly MI payment. For example, assuming
a home sale price of $100,000 with a 2.25% downpayment, a 7% rate, and 1%
upfront MI premium payment, a homebuyer can get an affordable monthly MI
payment of $40 for an affordable total monthly mortgage payment of $690. The
benefit of SplitEdge is that the homebuyer (or an approved third-party) has
the option of making a larger upfront payment, thereby reducing the monthly MI
premium.
"SplitEdge represents Radian's commitment to provide innovative mortgage
insurance products and services to the housing market," said Mike Dziuba,
senior vice president, Business Development. "The benefits of this product
are two-fold. It helps state and local housing agencies with their mission of
helping underserved homebuyers. And it helps homebuyers find the best
affordable mortgage options."
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:
For investors: Mona Zeehandelaar of Radian,
+1-215-231-1674, mona.zeehandelaar@radian.biz; For the media:
Radian Corporate Communications, +1-888-NEWS-520,
media@radian.biz
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