Radian Group Inc. has launched Radian Mortgage Capital LLC (RMC), a mortgage conduit formed to provide residential mortgage lenders with an additional secondary-market option for high-quality loans and to provide mortgage investors with a sponsor.
RMC expands the company’s capabilities to participate in the mortgage market to aggregate, manage and distribute residential mortgage credit risk.
“We view RMC’s services as a natural extension of our products, further deepening our relationships across the mortgage ecosystem with mortgage lenders and investors,” says CEO Rick Thornberry. “As a market leader recognized for delivering innovative mortgage products and solutions, Radian’s strong liquidity and capital base, deep market relationships, and credit risk management expertise combined with an experienced RMC team provide us with the strategic flexibility to broaden our market reach through RMC.”
RMC plans to leverage Radian’s lender relationships to aggregate and distribute residential mortgage loans into the capital markets through private-label securitizations and direct sales to mortgage investors, with the option to retain and manage structured components of the underlying credit risk where the company sees value.
“Our mortgage insurance customers have communicated a growing need for additional secondary market options, and we are pleased to be able to expand the products we deliver to lenders through RMC,” comments Derek Brummer, Radian’s mortgage business president. “We believe Radian’s strong track record for pricing and managing mortgage credit risk and leveraging decades of robust residential mortgage performance data through multiple cycles, together with our extensive proprietary analytics platforms, positions us to expand our position as a trusted and valued partner across the mortgage market.”
