Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., announced today that it plans to offer rescission relief after 12 months for both delegated and non-delegated customers. Radian intends to make this new innovative product available as part of the enhancements the company is making to its Master Policy.
“Our goal at Radian is to provide our customers with competitive, leading-edge products that make it easier for them to do business with us,” said Teresa Bryce Bazemore, president, Radian Guaranty. “Our unique offering – Confident Coverage™ – is designed to offer customers the ability to opt-in to receive rescission relief on every loan after just 12 months.”
With Confident Coverage, lenders will have the ability to opt for a full audit of their loan origination and closing file. Under this coverage, Radian will waive its exclusions from coverage for origination errors or negligence provided there is a successful audit of the loan and the borrower timely pays the first 12 months from their own funds. Additionally, Radian will offer rescission relief without an initial audit where the borrower has made 36 payments, if the borrower has been 30 days late no more than two times and never more than 60 days late during the first 36 months of the loan.
The new Master Policy, developed in conjunction with the government-sponsored-enterprises (GSEs) and the Federal Housing Finance Agency, is anticipated to become effective July 1, 2014, depending on the receipt of state approvals, which are currently pending.“Radian’s new Master Policy provides our customers with more clarity of process, consistency and transparency,” said Brien McMahon, Radian’s chief franchise officer. “The new policy details the roles and responsibilities of critical stakeholders and specifies provisions that clarify under what circumstances a policy may be rescinded, as well as detailed timeframes for claims processing.”