Company suspends share repurchases to maintain its capital and liquidity position; continues to provide uninterrupted customer support
- Suspension of Share Repurchases. In order to maintain Radian’s capital and liquidity position during this unprecedented period of economic uncertainty, the company has suspended its share repurchase program by canceling its current 10b5-1 plan effective
March 19, 2020. Radian may initiate a new 10b5-1 plan at its discretion in the future, during an open trading window and in accordance with SECrules. The current share repurchase authorization expires on August 31, 2021.
During the first quarter of 2020 including activity through
March 19, the company purchased 11 million shares for a total cost of $226 million. The company has $199 millionof its current $475 millionshare repurchase authorization remaining. The average share price of the repurchases during the first quarter of 2020 was $20.51, including commissions. In total, approximately 13.2 million shares have been repurchased under this authorization at an average price of $20.88, including commissions.
Following are several notable financial measures:
- Approximately 72 percent of Radian’s total primary mortgage insurance risk-in-force as of
- Debt-to-total-capital ratio at the end of 2019 was 18 percent, with the first debt maturity occurring in
- Alignment with Fannie Mae/Freddie Mac Guidelines. In response to COVID-19, Fannie Mae and Freddie Mac have announced temporary origination and servicing guidelines. As lenders work to assist new and existing borrowers, Radian Guaranty is aligned with each of these policies which include temporary alternatives to traditional property appraisals and verbal verification of employment. Additional Fannie Mae and Freddie Mac policies for loans where borrowers are experiencing a COVID-19 related hardship include credit reporting requirements flexibility, forbearance plans, loan modifications, and suspensions of foreclosure and evictions.
- Work-From-Home and Business Continuity Policies. With locations throughout the country, Radian has activated its business continuity program by transitioning to a work-from-home virtual workforce model with certain essential activities supported by limited staff in controlled office environments. This transition was made to responsibly ensure the safety of its employees related to the COVID-19 pandemic and to continue to serve customers across its strategic businesses.
For more information on Radian’s response to COVID-19 for customers and business partners, visit www.radian.com/covid-19.
Due to the unprecedented and rapidly changing social and economic impacts associated with the COVID-19 pandemic on the
Radian is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, risk, real estate, and title services. We are powered by technology, informed by data and driven to deliver new and better ways to transact and manage risk. Learn more about Radian’s financial strength and flexibility at www.radian.biz and visit www.radian.com to see how Radian is shaping the future of mortgage and real estate services.
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