Radian Group Inc. subsidiary Radian Guaranty Inc. is updating its mortgage insurance premium rates.
Radian decreased its monthly premium rates and increased its single premium rates for mortgage insurance, including the introduction of rate adjustors related to multi-borrower loans and loans with debt-to-income ratios greater than 45%. This would result in an overall premium rate decrease of about 6%, which includes the impact of the new rate adjustors on about 50% of the new business.
The pricing updates will be effective for all mortgage insurance applications received on or after June 4.
Radian expects the new pricing to generate a return on required capital in the mid-teens. This projected return incorporates the company's understanding of the proposed changes to the private mortgage insurer eligibility requirements, which are expected to be effective no earlier than the end of this year.