Radian shuts down mortgage conduit after divestiture process

"Radian ceased accepting new business for Radian Mortgage Capital early last week and is in the process of thoughtfully winding down the business over the coming months. This decision followed a thorough process to explore divestiture options, and ultimately, we determined that discontinuing operations was in the best interests of our organization, our employees and our customers."

"The conduit, which operated primarily through Radian Mortgage Capital, focused on buying mortgages in the secondary market from lenders and selling them to investors or into private-label securitizations. The platform could also retain mortgage servicing rights on loans it sells."

"That strategy was part of a broader corporate shift tied to Radian's $1.7 billion all-cash acquisition of Inigo Limited from Lloyds, a deal that repositions the company from a U.S. mortgage insurer into a global, diversified, multiline specialty insurer."

Radian has ceased accepting new business for Radian Mortgage Capital and is winding down the mortgage conduit unit over the coming months following a thorough divestiture exploration process. The conduit previously purchased mortgages in the secondary market from lenders and sold them to investors or into private-label securitizations, while retaining mortgage servicing rights on sold loans. The company determined that discontinuing operations served the best interests of the organization, employees, and customers. This decision aligns with Radian's broader corporate transformation following its $1.7 billion acquisition of Inigo Limited from Lloyds, repositioning the company from a U.S. mortgage insurer into a global, diversified specialty insurer. The conduit wind-down does not indicate decisions regarding the title and real estate services businesses, which remain under strategic evaluation.

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