Radian Group Inc (NYSE: RDN) |
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Radian Group Inc's Comment on Competition and Industry Peers
We operate in the highly competitive U.S. mortgage insurance industry. Our
competitors include other private mortgage insurers and federal and state governmental
and quasi-governmental agencies, principally the FHA and VA.
We compete directly with the following six private mortgage insurers:
Arch U.S. MI (acquired CMG Mortgage Company effective January 30, 2014);
Essent Guaranty Inc.;
Genworth Financial Inc.;
Mortgage Guaranty Insurance Corporation;
NMI Holdings, Inc.; and
United Guaranty Corporation.
We compete with other private mortgage insurers primarily on the basis of price,
underwriting guidelines, customer relationships, reputation, perceived financial
strength (including based on credit ratings) and overall service. Service-based
competition includes effective and timely delivery of products, timeliness of
claims payments, customer service, timely and accurate servicing of policies,
training, loss mitigation efforts and management and field service expertise.
Pricing has always been competitive in the mortgage insurance industry. However,
the presence of newer entrants in the industry has increased price competition
as these companies seek to gain a greater presence in the market and more established
industry participants seek to defend their market share and customer relationships.
As a result, recent pricing trends have included: (i) the increased use of a
spectrum of filed rates to allow for formulaic, risk-based pricing (commonly
referred to as “black-box” pricing); (ii) a significant increase
in the broad use of customized (often discounted) rates on lender-paid, Single
Premium policies, and more recently, on borrower-paid, monthly premium policies;
and (iii) overall reductions in standard filed rates on borrower-paid policies.
The willingness of mortgage insurers to offer reduced pricing (through filed
or customized rates) has been met with an increased demand from certain large
lenders for reduced rate products. This has further intensified the pricing
environment and has resulted in new pricing levels (whether through filed or
customized rates) that private mortgage insurers are expected to meet in order
to avoid risking a potential significant loss in NIW.
The heightened pricing competition has occurred in the context of generally
higher capital requirements being applied to private mortgage insurers as a
result of the PMIERs and more aggressive pricing by the FHA (which is most impactful
with respect to high-LTV loans for borrowers with FICO scores below 720). This
has produced a marketplace where balancing both targeted returns on new business
and an acceptable share of the insured market has become increasingly challenging
for all participants. In formulating our strategy in this environment, we have
taken a disciplined approach to establishing rates and delivering a mix of business
that is expected to produce our targeted level of returns on a blended basis
and an acceptable level of NIW. In furtherance of this strategy, we recently:
(1) increased our filed rates for lender-paid mortgage insurance; (2) continued
to use the authority set forth in our rate filings to provide customized premiums
for lender-paid, Single Premium mortgage insurance on a selective and negotiated
basis while, importantly, declining to participate in significantly discounted,
Single Premium business that has been offered for bid on an aggregated basis
(which we estimate represented approximately 5% of the total private mortgage
insurance market in 2015); and (3) determined to change our borrower-paid, filed
rates in order to remain competitive, which generally will have the effect of
decreasing our standard rates on higher FICO business and raising our rates
on lower FICO business where the FHA is already very competitive.
We believe our Services business is uniquely positioned as a single provider
of an array of outsourced services and solutions to participants in the mortgage
value chain and that this position differentiates us from our competitors. We
are not aware of any other company that provides a comparable range of services
to the residential mortgage and real estate industries. However, our Services
business has multiple competitors within each of its individual lines of business.
Our competitors mainly include small privately-held companies and subsidiaries
of large publicly-traded companies.
Significant competitors within each of our business lines include:
Loan Review and Due Diligence – American Mortgage Consultants, Inc. and
JCIII & Associates (consolidated in a business combination as American Mortgage
Consultants, Inc., effective December 2015), Digital Risk, LLC, LenderLive Network,
Inc., Opus Capital Markets Consultants, LLC and Stewart Lender Services, Inc.
Surveillance – CoreLogic, Inc., Digital Risk, LLC, FTI Consulting, Inc.,
Pentalpha Surveillance LLC and Promontory Financial Group, LLC
Valuation and Component Services – Carrington Property Services, LLC,
ClearCapital.com, Inc., CoreLogic, Inc., Pro Teck Valuation Services, First
American, Collateral Analytics and Black Knight Financial Services
REO Management – Altisource Portfolio Solutions S.A., Solutionstar Holdings
LLC, Stewart Lender Services, Inc. and VRM Mortgage Services
EuroRisk – Deloitte LLP, PricewaterhouseCoopers LLP, Ernst & Young
LLP, KPMG LLP, Situs Group, LLC, Euristix Ltd, Rockstead Ltd and Grant Thornton
Across all business lines, we compete on the basis of industry expertise, price,
technology, service levels and relationships.
Overall company Market Share Q3 2024 |
*Market share is calculated based on total revenue.
News about Radian Group Inc Contracts |
August 1, 2024
WAYNE, Pa. Radian Group Inc. (NYSE: RDN), a prominent player in the real estate and mortgage industry, has recently marked significant milestones through strategic initiatives that bolster its market footprint. The company has demonstrated its prowess in mortgage securitization, while simultaneously expanding its technological reach within the real estate investment community.In a groundbreaking move, Radian s mortgage conduit, Radian Mortgage Capital LLC (RMC), successfully closed its premier prime jumbo securitization. The securitization, dubbed Radian Mortgage Capital 2024-J1, encapsulates a robust $348.9 million portfolio of residential real estate loans. This portfolio is supported by 359 fully amorti...
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March 5, 2024
Wayne, PA - SOLD.com, a prominent online real estate marketplace and educational resource provider, has recently joined forces with...
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January 11, 2024
Radian Group Inc. (NYSE: RDN) has taken a significant step forward in its commitment to empowering homeownership and revolutionizing the way consumers navigate their financial journey. The company recently announced its strategic investment in FinLocker, an innovative personal financial fitness and homeownership tool. By harnessing advanced technology, FinLocker efficiently consolidates and analyzes consumers financial data, presenting tailored paths to mortgage eligibility and other financial transactions.With the precise terms of the investment remaining undisclosed, Radian Group Inc. s partnership with FinLocker perfectly aligns with the company s mission of making homeownership dreams come true. The col...
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Publicly Traded Peers of Radian Group Inc
Arch Capital Group Ltd Share Performance
+4.52%
This Year
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Arch Capital Group Ltd
Profile
Arch Capital Group Ltd operates as a global insurance and reinsurance company, providing risk management solutions to clients worldwide. Their business model involves underwriting various lines of insurance and reinsurance policies, generating revenue through premiums received, and managing risk through diversification and prudent investment strategies.
More about Arch Capital Group Ltd 's Market Share
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Enact Holdings Inc Share Performance
-0.21%
30 Days
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Enact Holdings Inc
Profile
Enact Holdings Inc operates as a private mortgage insurance company. It provides mortgage insurance products and services to lenders, helping them mitigate risk associated with low down payment residential mortgages.
More about Enact Holdings Inc 's Market Share
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Nmi Holdings Inc Share Performance
+27.35%
One Year
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Nmi Holdings Inc
Profile
Nmi Holdings Inc operates as a private mortgage insurance company. They provide mortgage insurance products and related services to lenders and government sponsored entities, helping to protect them from credit losses on low down payment residential mortgage loans. Their business model primarily revolves around underwriting mortgage insurance and collecting premiums from lenders in exchange for assuming credit risk.
More about Nmi Holdings Inc 's Market Share
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Arlington Asset Investment Corp Share Performance
+4.54%
Over The Past 5 Days
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Arlington Asset Investment Corp
Profile
Arlington Asset Investment Corp's business model is focused on investing in and managing a portfolio of mortgage-backed securities and other related assets.
More about Arlington Asset Investment Corp 's Market Share
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Federal Agricultural Mortgage Corporation Share Performance
0.00%
This Quarter
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Federal Agricultural Mortgage Corporation
Profile
Federal Agricultural Mortgage Corporation, also known as Farmer Mac, operates as a government-sponsored enterprise in the United States. It provides a secondary market for agricultural real estate loans, rural utilities, and rural housing loans, by purchasing and guaranteeing them.
More about Federal Agricultural Mortgage Corporation's Market Share
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American International Group Inc Share Performance
+11.67%
One Year
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American International Group Inc
Profile
American International Group Inc (AIG) is a multinational insurance and financial services organization that primarily operates in the insurance sector by underwriting a wide range of policies, encompassing property, casualty, life, and retirement products. In addition to its insurance offerings, AIG provides risk management solutions to help clients navigate financial uncertainties and protect against potential losses. Another key aspect of AIGs business model is investing the premiums collected from policyholders, which helps generate income and strengthen the companys capital reserves.
More about American International Group Inc 's Market Share
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Mr Cooper Group Inc Share Performance
+10.30%
This Year
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Mr Cooper Group Inc
Profile
Mr. Cooper Group Inc operates as a mortgage servicer and lender, focusing on helping customers navigate their homeownership journey.
More about Mr Cooper Group Inc 's Market Share
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Essent Group Ltd Share Performance
+3.96%
Over The Past 5 Days
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Essent Group Ltd
Profile
Essent Group Ltd operates as a private mortgage insurance company, providing financial protection to lenders and investors against home mortgage credit risk. The company earns revenue through the collection of insurance premiums and investment income generated from the funds held to support insurance reserves.
More about Essent Group Ltd 's Market Share
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Genworth Financial Inc Share Performance
+5.90%
Over The Past 5 Days
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Genworth Financial Inc
Profile
Genworth Financial Inc's business model revolves around providing insurance and financial solutions, focusing primarily on long-term care insurance, life insurance, mortgage insurance, and annuities. Their aim is to help individuals and families protect themselves financially, manage risks, and plan for the future.
More about Genworth Financial Inc 's Market Share
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Mbia Inc Share Performance
+7.46%
One Year
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Mbia Inc
Profile
Mbia Inc's business model focuses on providing financial guarantees and insurance products, particularly in the areas of bond and municipal finance, to clients such as governments, financial institutions, and corporations.
More about Mbia Inc 's Market Share
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Sources: Radian Group Inc and all companies mentioned above in this report
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