Philadelphia Inquirer (05/13/08); Brubaker, Harold
After recording a $106.9 million profit in 2007, the housing slump and credit crunch caused Radian Group Inc. to post a $215.2 million loss for the 2008 first quarter. Claims paid by the Philadelphia-based mortgage and bond insurer rose almost twofold to $190.19 million from $95.82 million in last year's first quarter. Radian CEO Sanford Ibrahim said the company is working "to mitigate the effect of the housing downturn" by paying the Consumer Credit Counseling Service of the Delaware Valley to contact borrowers nearing default. While the company's reserves total $1.74 billion, payouts likely will reach $1 billion. Radian is not the only mortgage insurer with financial troubles, as PMI Group Inc. reported a first-quarter loss of $273.96 million.
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