NEW YORK (TheStreet) -- Shares of Radian Group Inc. (RDN) are down by -4.60 % to $13.88 on heavy volume in mid-morning trading on Friday as the property and casual insurance company reacts negatively to the Federal Housing Finance Agency's newly proposed standards.
The FHFA is planning Private Mortgage Insurer Eligibility Requirements (PMIERS) which would require higher capital standards on the mortgage insurers Fannie Mae (FNMA) and Freddie Mac (FMCC) work with, Market News reports.
Companies have until September 8 to comment on the new PMIERS. Radian called the FHFA's regulations "more onerous than the company's historical default experience suggests would be needed to withstand a severe stress event," Market Watch added.
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Shares of mortgage insurer MGIC Investment Corp. (MTG) also tanked -12.12% to $2.12 on heavy volume following the FHFA's new standards.
TheStreet Ratings team rates RADIAN GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RADIAN GROUP INC (RDN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."