Structured Mortgage Insurance
By providing mortgage insurance to enhance the credit quality of a portion of the
mortgage loans being securitized, AA-rated Radian reduces the level of over-collateralization required of
the issuer, resulting in better loss-coverage levels, higher up-front proceeds and reduced residual
volatility. For a portfolio lender, mortgage insurance will reduce regulatory capital requirements and
may reduce charge-offs and reduce the volatility of the residual value. Radian offers several categories
of bulk MI.
Primary Mortgage Insurance
Radian offers various levels of primary mortgage insurance to meet the needs of the lender, portfolio
manager, or issuer. This can range from traditional agency coverage levels to deep coverage levels.
Pool Policies
Radian pool insurance helps clients attain AA ratings for a variety of loan types, including Alternative
A, A Minus and prime seconds. A pool policy calls for Radian, as insurer, to pay certain default-related
losses, subject to an aggregate amount of claims paid, known as the stop loss.
Modified Pool Policies
Radian modified pool policies allow us to be flexible and to tailor the combination of primary mortgage
insurance and pool policies with their various combinations of insurance characteristics (coverage
levels, deductibles, stop losses and per incident caps) to meet the specific needs of our customers.
Alternative A
Radian insures the portion of the collateral represented by mortgages of otherwise creditworthy borrowers
who do not meet traditional standards of income and asset verification.
Prime (Jumbo)
Radian insures both current and seasoned traditional prime collateral as well as a portion of the
collateral represented by jumbo balance mortgages in excess of the traditional agency dollar limits.
Radian is a credit enhancement provider for a number of FHLB products.
Subprime/A Minus
Radian insures a portion of the collateral represented by mortgages of credit-impaired borrowers who do
not meet traditional credit standards. The primary insurance coverage levels generally are in excess of
traditional coverage percentages.
To discuss bulk MI opportunities inside the U.S., contact Chris Curran, Senior Vice President, Capital Markets, +1 215 231.1041. For opportunities outside the U.S., contact Jeff Cashmer, Senior Vice President, International Mortgage, +1 215 231.1256.
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