Radian Group Inc. performance reflects industry trends

Thornberry, during the earnings call, touted the recent formation of Radian Mortgage Capital (RMC): “In the second quarter, we continued to experience favorable prior period reserve development, which was largely driven by better-than-expected cure activity and new notices of default in the quarter were the lowest we’ve seen in more than 20 years,” he said. “We were excited to announce in July the launch of our new mortgage conduit Radian Mortgage Capital, or RMC, which was formed to provide residential mortgage lenders with an additional secondary market option for high-quality loans and to provide mortgage investors with a trusted high-quality sponsor. We believe RMC is a natural extension of our strategy products that leverages our deep mortgage expertise, helping to broaden our market reach as an aggregator, manager and distributor of residential mortgage credit risk.

Thornberry also expressed gratification over the performance of the company’s Homegenius product even though its revenues were lower than those from the same quarter last year. “For our Homegenius segment, total revenues for the quarter were $32.3 million. Although lower than the second quarter of 2021, Homegenius revenues year-to-date for 2022 are 12% higher than the same period last year.”

The CEO referenced the ebbing of the refinancing market, and said its volume in that segment is expected to be lowered. The home equity side of the business appears to be gaining in light of lowered refi volume.

“Although we continue to add new customers based on our excellent service and strong value proposition, we expect overall market refinance volumes to remain low,” Thornberry said. “Despite the slowdown in our refinance title volumes, we are seeing growing interest in our home equity title products and services from some of the largest financial institutions as they ramp up their home equity lending business. We are also attracting new interest across our purchase title programs that leverage our award-winning and patent pending TITLEGENIUS technology platform. Although our purchase title volumes remain small, we are encouraged by the traction we are gaining with homebuyers, real estate agents, lenders and investors. Specifically, we are attracting strategic interest from lenders in our unique centralized purchase title platform to better control the home purchase closing process.”