Radian Group Inc. · NYSE:RDN
Radian — Investor Day (November 2015)
109 slides from Radian's investor day presentation, Nov 17, 2015
Slide 1: Radian Investor Day
Radian Investor Day November 17, 2015 NYC www.radian.biz NYSE: RDN
Slide 2: Agenda
Agenda 9:00 a.m. Emily Riley SVP, Investor Relations and Corporate Communications 9:05 a.m. S.A. Ibrahim page 3 Chief Executive Officer 9:30 a.m. Cliff Rossi Chief Economist page 5 10:00 a.m. Teresa Bryce Bazemore President, Mortgage Insurance page 24 10:30 a.m. Break 10:45 a.m. Joe D’Urso President
Slide 3: S.A. Ibrahim, Chief Executive Officer
S.A. Ibrahim Chief Executive Officer
Slide 4: Radian's Strategic Objectives
Radian’s Strategic Objectives Write More, High-quality and Profitable New Insurance Written (NIW) Grow fee income and Leverage our fee-income products to deepen MI customer relationships Lead with superior risk analytics and technology Seek new markets for existing products and services En
Slide 5: Cliff Rossi, Chief Economist
Cliff Rossi Chief Economist
Slide 6: Gauging the Health and Direction of the Mortgage Market
Gauging the Health and Direction of the Mortgage Market Framework for how we assess the market is distilled into a primary set of general economic and housing demand and supply drivers Demand-side Transaction Supply-side: - Sales Borrower Financial Health - House Availability • Income Prices • Gro
Slide 7: Macroeconomic Drivers: Stable but not Stellar Growth Expected
Macroeconomic Drivers: Stable but not Stellar Growth Expected GDP economic expansion since Great Recession is 5th longest on record at 73 months and showing signs of fatigue Barring a major shock, economy expected to continue to expand and unemployment rates should remain steady next year, despi
Slide 8: Demand-side: Borrower Financial Health
Demand-side: Borrower Financial Health Income, Debt and Affordability Income growth remains weak though a glimmer of positive news recently came with October average hourly private sector earnings posting a 2.9% rise; the best result in 5 years Debt burden has moderated since the crisis, althoug
Slide 9: Demand-side: Consumer Sentiment
Demand-side: Borrower Financial Health Consumer Sentiment Consumer sentiment has been steadily rising since the crisis Housing sentiment has also been on the rise Consumer Confidence Index Fannie Mae Home Purchase Sentiment Index 160.00 90.0 140.00 85.0 120.00 80.0 75.0 100.00 70.0 80.00 65.0 60
Slide 10: Demand-side: Credit Availability
Demand-side: Borrower Financial Health Credit Availability UW Risk Layering Index1 shows that credit standards remain tight compared to 2000 Generally, credit availability continues to improve Mortgage Risk Layering Index (Smaller Values Indicate Tighter Credit Standards) 3.00 2.50 2.00 1.50 1.0
Slide 11: Demand-side: Originations
Demand-side: Borrower Financial Health Originations Mortgage originations projected in 2016 at $1,376M1; a drop of $175M1 compared to 2015; much of that fall due to a tapering off in refinancings next year Annual Mortgage Originations 4500.00 0.80 4000.00 0.70 3500.00 0.60 3000.00 0.50 2500.00 0.4
Slide 12: Demand-side: Population Dynamics
Demand-side: Population Dynamics Household Formation and Market Composition Trends Household formation has improved in recent years Share of first-time homebuyers has also improved but still lags behind historical shares of about 40% Investor-owned share of the market holding steady at twice p
Slide 13: Changing Market Demographics
Demand-side: Population Dynamics Changing Market Demographics Homeownership rates for younger segments of the market dropped sharply after the crisis compared with older groups Homeownership Rates by Age Group 13
Slide 14: Changing Market Demographics
Demand-side: Population Dynamics Changing Market Demographics Minorities are expected to drive 76% of net household growth over the next 10 years and 85% over the next 20 years.1 Likewise, more foreign-born consumers will enter the market Nontraditional credit will play an increasingly importa
Slide 15: Supply-side: Availability and Alternative Housing
Supply-side: Availability and Alternative Housing Months supply of homes on the market have come back in line with pre-2006 levels Months Supply of Homes on the Market 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Months Supply of Single-Family Homes Months Supply of Condos and Coops Source: US
Slide 16: Supply-side: Availability and Alternative Housing
Supply-side: Availability and Alternative Housing Housing starts have edged up since the crisis but remain below 2005 levels Meanwhile rentals have seen a sharp increase Average Annual Change in Occupied Housing Starts (Millions of Units) Rental Units (000’s) 2.50 2.00 1.50 1.00 0.50 0.00 Source
Slide 17: Supply-side: Absorption
Supply-side: Absorption Foreclosure inventory levels have come down over the last year as has the percentage of underwater homeowners Foreclosure Inventory Trends Percent of Homeowners with Negative Equity 800 0 33 750 -1 31 -2 29 700 -3 27 650 -4 -5 25 600 -6 23 550 -7 21 500 -8 19 17 15 Foreclos
Slide 18: Transaction: Home Sale Activity
Transaction: Home Sale Activity Existing home sale activity has improved since the crisis, however new home sales remain well below pre-2006 levels Home Sale Activity 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 600 2,000 400 1,000 200 0 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09
Slide 19: Transaction: Home Prices
Transaction: Home Prices Housing prices have shown upward momentum, particularly for those in the lowest price tier HPI by Price Segment 19
Slide 20: Transaction: Home Prices
Transaction: Home Prices The House Price to Rent Ratio has been tilting away from home ownership, reflecting improving home prices since the crisis House Price to Rent Ratio 20
Slide 21: Housing and Mortgage Market Scorecard
Housing and Mortgage Market Scorecard Market overall shows signs of improvement but mediocre macroeconomic conditions hold back robust growth Overall grade: B Macroeconomic Comments Drivers Economic Growth Sluggish but stable Unemployment Improving and stable Interest Rate Conditions At the trou
Slide 22: Wild Cards: External Shocks
Wild Cards: External Shocks A number of exogenous global shocks could alter the current outlook for the mortgage and housing market Factors to watch for include: – China’s policy response to weakening growth • Chinese real estate market at bubble-like levels • Equity market recent tumble a sign
Slide 23: Questions?
Questions? RADIAN
Slide 24: Teresa Bryce Bazemore, President, Radian Guaranty
Teresa Bryce Bazemore President, Radian Guaranty
Slide 25: Need for Private Mortgage Insurance
Need for Private Mortgage Insurance Source: USMI 25
Slide 26: Nearly All People Under Age 65 Expect To Buy
Nearly All People Under Age 65 Expect To Buy In The Future. . . 26
Slide 27: Years to Save 10% Downpayment
Years to Save 10% Downpayment Source: USMI 27
Slide 28: MI Makes Homeownership a Reality
MI Makes Homeownership a Reality Source: USMI 28
Slide 29: Private Mortgage Insurers Paid Over $50 Billion in Claims
Private Mortgage Insurers Paid Over $50 Billion in Claims Since the Financial Crisis Began Source: USMI 29
Slide 30: Market Trends
Market Trends Interest rates flat but projected to rise Home prices approaching 2007 peak Inventory is low in many MSA Originations flat through 2018 but purchase percentage is up Rate of household formation increasing Demographics point to primary household growth in diverse segments
Slide 31: Industry Evolution & Drivers
Industry Evolution & Drivers Ease of doing business Evolving customer base Evolving nature of mortgage finance Shifting of technology advancement, information and tools to meet customer demand Mobile capabilities – more digital Growth of direct to customer 31
Slide 32: MI Vision
MI Vision We promote the American dream by increasing access to affordable, sustainable homeownership and will be the industry's first choice for mortgage risk management solutions. 32
Slide 33: Circle of Value
Circle of Value Diverse Segments Training Online Tools Industry Advocacy Consulting Valuation Services Title Services Appraisal Services Transaction Management Surveillance Valuation Services Title Services Appraisal Services Radian Group MI Training Transaction Management Underwriting Consulting On
Slide 34: Poised for Future Success
Poised for Future Success Support and Grow Grow Fee the Mortgage for Service Originations Market Revenues Defend and Generate incremental Leverage First Time Homebuyer outreach, Diverse Markets Expand the revenues through strategy and partnerships, Role of MI cross sell of Clayton Grow the and other
Slide 35: Support and Grow the Mortgage Originations Market
Support and Grow the Mortgage Originations Market W i t h a F o c u s o n A t t r a c t i n g F i r s t T i m e H o m e b u ye r s First Time Homebuyer Focus Clayton Services Provide educational tools targeted to first time Support Radian’s customers’ origination operations homebuyers, realtors, and
Slide 36: Defend and Expand the Role of Private MI vs. FHA
Defend and Expand the Role of Private MI vs. FHA National Training GSE Relationships Best in class in-person, webinar and recorded Maintain active and open dialogue with the GSEs to training targeted to lenders and realtors promote the role of private capital in the housing highlighting the advantag
Slide 37: Opportunities for Future Growth: New Household Formation
Opportunities for Future Growth New Household Formation Driven by Diverse Markets 13 million of the 17 million projected between 2010 and 2025 % of Projected New Households 2010-2025 African - American* – 18.2% Hispanic – 40.5% Asian/Other* 15.5% White* – 25.8% SOURCE: Updated 2010-2020 Household an
Slide 38: Opportunities for Future Growth: Renters Minimal Savings
Opportunities for Future Growth Renters Have Minimal Savings/Wealth—Need Low Downpayment Loans Cash Savings (Thousands of dollars) Total Net Wealth (Thousands of dollars) Notes: Data for Renters only. Cash savings includes checking, saving, CD and money market accounts. Source: JCHS tabulations of 2
Slide 39: To Buy or To Rent?
To Buy or To Rent? Source: www.keepingcurrentmatters.com, May 8, 2015 39
Slide 40: 95.01 – 97 LTV NIW is Growing
95.01 – 97 LTV NIW is Growing 4.0% 3.6% 3.5% $200 3.4% 3.5% $166 2.9% $152 3.0% $146 $150 2.3% $126 2.5% 1.9% 2.0% $100 $85 1.5% $60 1.0% $50 0.5% 0.5% 0.5% 0.4% 0.4% 0.3% 0.5% $14 $15 $17 $20 $16 $19 $- 0.0% 95.01 - 97 LTV NIW % of total NIW 40
Slide 41: Deeper Cover
Deeper Cover Front End Risk Sharing With MI on Low Down Payment Loans Reduces GSE Exposure With Deeper Cover MI Without MI With MI DOWN PAYMENT RISK (GSEs) RISK (GSEs) RADIAN “
Slide 42: Questions?
Questions? RADIAN
Slide 43: Break
BREAK
Slide 44: Joe D'Urso, President, Clayton
Joe D’Urso President, Clayton
Slide 45: What is Mortgage and Real Estate Services?
What is Mortgage and Real Estate Services? Clayton provides risk-based analytics, residential loan due diligence, consulting, surveillance and staffing solutions. The company also provides: Advanced AVMs, BPOs and Valuation, Title, Closing and Customized REO asset technology solutions to monitor loa
Slide 46: Mortgage and Real Estate Services Revenue Drivers
Mortgage and Real Estate Services Revenue Drivers % of Potential Future Market Segments/Clients Current Revenue Drivers Revenue (1) Revenue Drivers • Mortgage Origination (Banks, Non-Agency RMBS REITs, Mortgage Originators) Securitization Due Diligence • Performing & Non-Performing Loan Balanced Mix
Slide 47: Mortgage and Real Estate Services Revenue Drivers
Mortgage and Real Estate Services Revenue Drivers % of Potential Future Revenue Market Segments/Clients Current Revenue Drivers Revenue (1) Drivers • Single Family Rental (SFR) Securitization (Banks, Investment Banks) SFR Securitizations by and Debt SFR Securitizations by and • SFR Debt Facilities (
Slide 48: Mortgage and Real Estate Services Revenue
Mortgage and Real Estate Services Revenue ($ in thousands) 50,000 $44,595 Eurorisk 45,000 $43,114 $42,243 $39,115 40,000 $37,041 Surveillance $36,347 $34,466 35,000 $32,718 $31,532 REO management 30,000 $28,043 $25,593 25,000 Valuation and component services (2) 20,000 Loan review and due diligence
Slide 49: Revenue Model Overview
Revenue Model Overview Fee-For-Service Model Loan Review & Due Diligence REO & Short Sales • Balanced Mix of Non- 99% Agency RMBS 43% • REO Asset Management Securitization, Whole Loan Trades (Performing Services - Remaining Backlog & Non-Performing) and 57% of Distressed Loans Origination Services 1
Slide 50: Single Family Rental Case Study
Single Family Rental Case Study Warehouse SFR Investment Monetization via Bank Investor Properties Sale or Securitization Component Component Services Component Services • Valuations (AVE, • Valuations (AVE, BPO, Services BPO, Appraisal) Appraisal) • Valuations (AVE, • Lease Review • Lease Review BP
Slide 51: Circle of Value
Circle of Value Broaden Existing Capabilities within Residential Real Estate NYSE: RDN www.radian.biz 51 51
Slide 52: Questions?
Questions? RADIAN
Slide 53: Derek Brummer, Chief Risk Officer
Derek Brummer Chief Risk Officer
Slide 54: Agenda
Agenda Risk Management Overview – Vision and Goals – Enterprise Risk Management Framework and Process – Risk Management Tools MI Portfolio Trends Hot Topics – PMIERs – MI Pricing 54
Slide 55: Risk Management Overview
Risk Management Overview Enterprise Risk Management Credit Policy and Underwriting Quality Control Lender Approval and Monitoring Portfolio Surveillance and Management Quantitative Analytics Data Governance Loss Forecasting and Reserving 55
Slide 56: Risk Management Vision and Goals
Risk Management Vision and Goals Vision: To be the industry leading risk management organization that effectively identifies, assesses and manages risks, and executes on opportunities for Radian, while ensuring overall long-term profitability. Goals: Embed and continually reinforce a corporate-w
Slide 57: Enterprise Risk Management Framework
Enterprise Risk Management Framework Board of Directors Risk Governance Oversight CEO Risk Culture ERM Risk Infrastructure & Executive Steering Management ERM Infrastructure Committee People Process Technology ERM Council Risk Process Primary Risk Owners Risk Analyze/ Assess/ Control/ Monitor/ Ident
Slide 58: Enterprise Risk Management Quarterly Review Process
Enterprise Risk Management Quarterly Review Process ERM Risk Owners Executive Submit Assess Risk Steering Report & via Reporting Committee Findings with Template Review the Board ERM Council Findings & Review Results Shared With Senior Management 58
Slide 59: Risk Management Tools
Risk Management Tools Radian’s vision is to be the housing industry’s first choice for risk management solutions across the entire mortgage life-cycle. RaDaR™ Radian’s proprietary credit modeling tool, which provides projections of credit losses over time at a loan, cohort and portfolio level. Consi
Slide 60: Risk Management Tools: Lender Dashboard
Risk Management Tools: Lender Dashboard Sales Grade • Provides critical lender-level metrics and Sales Metric 1 Sales Metric 2 lender information as regular and available Sales Metric 3 Sales Metric 4 Operations Grade input into lender decisions Operations Metric 1 Operations Metric 2 Operations Met
Slide 61: Improved Composition of MI Portfolio
Improved Composition of MI Portfolio (1) NIW since 2009 and HARP volume combined now represents 83% of Radian’s mortgage insurance primary risk in force as of Q3 2015 2006-2007 (HARP) 2006-2007 (Non-HARP) 4.8% 8.2% Other Vintages (Non-HARP) 8.7% 2009-2015 4.7% 73.6% Other Vintages (HARP) Approximate
Slide 62: Improved Composition of MI Portfolio
Improved Composition of MI Portfolio Original FICO 2000-04 2005-08 2009+ Original LTV 2000-04 2005-08 2009+ < 680 43% 35% 5% LTE 85 25% 31% 15% 681 - 720 23% 25% 16% 85.01 - 90 38% 32% 39% 721 - 760 21% 22% 31% 90.01 - 95 30% 22% 43% > 760 14% 18% 48% > 95 7% 16% 2% Total 100% 100% 100% Total 100% 1
Slide 63: Improved Loan Manufacturing Quality
Improved Loan Manufacturing Quality Primary Flow EDE Rates 4.0% 3.5% 12-month EDE 6-month EDE 3.0% EDE RATE 2.5% 0.15% 2.0% 0.09% 0.10% 1.5% 0.04% 0.05% 1.0% 0.00% 0.5% 0.0% May-01 May-02 May-03 May-04 May-05 May-06 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 Jan-01 Jan-02 Jan-03
Slide 64: Strong Cumulative Incurred Loss Trends
Strong Cumulative Incurred Loss Trends 20% Cumulative Incurred Loss Ratio 18% Vintage Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Sep-15 2009 6.1% 7.0% 13.7% 17.4% 19.0% 18.3% 17.4% 16% 2010 1.2% 3.3% 6.5% 7.7% 7.5% 7.1% 14% 2011 1.7% 4.4% 5.5% 5.6% 4.9% 2012 2.0% 3.2% 3.6% 2.6% 2009 12% 2013 2.5% 4.0
Slide 65: Improving New Default Rates
Improving New Default Rates 65
Slide 66: Improving Cure Rates
Improving Cure Rates Quarterly Cure Rates 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4 2012-Q1 2012-Q2 2012-Q3 2012-Q4 2013-Q1 2013-Q2 2013-Q3 2013-Q4 2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q
Slide 67: Claim Submission Rates by Default Vintage
Claim Submission Rates by Default Vintage • Claim submission rates for new defaults continue to decrease toward 10% average experienced for 2002-2005 defaults. 67
Slide 68: First Time vs. Repeat Defaults
First Time vs. Repeat Defaults • Repeat defaults are more likely to cure and less likely to result in future claims than first-time defaults 68
Slide 69: Hot Topics: PMIERs
Hot Topics: Private Mortgage Insurer Eligibility Requirements (PMIERs) Private Mortgage Insurer Eligibility Requirements (PMIERs) were developed by Fannie Mae and Freddie Mac and come into effect on December 31, 2015 Lenders, investors and other mortgage market participants can now have even mor
Slide 70: Hot Topics: PMIERs Required Assets Overview
Hot Topics: PMIERs Required Assets Overview Risk-based capital factors are applied at a loan level to total net risk in force (RIF). Total risk-based capital represents projected claims on an insurer’s book of business over remaining life of existing policies in a significant stress scenario.
Slide 71: Hot Topics: PMIERs Required Assets Overview
Hot Topics: PMIERs Required Assets Overview Loan-level characteristics that determine capital factors applied to Non-Performing Loans: – Prior to a claim filing = 55% to 85% of RIF based on number of missed monthly payments – After a claim filing = 106% of RIF Significant benefits of PMIERs: – P
Slide 72: Hot Topics: Mortgage Insurance Pricing
Hot Topics: Mortgage Insurance Pricing Radian continues to target overall returns in the low- to mid-teens. Important Considerations: Return impact Customer demand and franchise value Customer mix Product mix Alternative borrower/lender executions Terms: Risk-based pricing More “granul
Slide 73: Hot Topics: Mortgage Insurance Pricing
Hot Topics: Mortgage Insurance Pricing Today’s pricing environment: increased granularity and risk- based pricing – Radian has moved toward a more granular and risk-based pricing approach over time without decreasing returns or NIW. – Example: Progression of the use of FICO scores in Radian’s Lend
Slide 74: Hot Topics: Mortgage Insurance Pricing
Hot Topics: Mortgage Insurance Pricing The impact of increased risk-based pricing and rate card granularity can be seen by comparing 2015 and 2007 average Single premium levels: 2015 vs. 2007 Vintage Premium Multiples Original LTV FICO TOTAL <= 85 85.1 - 90 90.1 - 95 > 95 < 680 2.4x 2.7x 4.1x 2.0x
Slide 75: Hot Topics: Mortgage Insurance Pricing
Hot Topics: Mortgage Insurance Pricing “Flattening” a rate card means adjusting premium levels to provide more consistent expected returns across the full credit spectrum Flattening a rate card does not necessitate a decrease in returns or NIW – Example: Recently filed Radian LP Singles rate car
Slide 76: Hot Topics: Mortgage Insurance Pricing
Hot Topics: Mortgage Insurance Pricing “Black Box” Approach – Provides a different delivery mechanism vs. rate card pricing – Implies more granular, risk-based pricing, however the extent to which it would be utilized in that way by competitors is unknown – Radian has the analytical capabilities a
Slide 77: Frank Hall, Chief Financial Officer
Frank Hall Chief Financial Officer
Slide 78: Agenda
Agenda Financial Highlights Mortgage Insurance Returns and Pricing Mortgage and Real Estate Services Expectations Expense Management Investment Portfolio Overview Capital Structure 78
Slide 79: Key Themes
Key Themes Financial strength Culture of efficiency Positioned to support growth 79
Slide 80: Financial Strength
Financial Strength Organic growth builds capital Improving capital structure conveys strength Our strong position provides greater flexibility for the future 80
Slide 81: Financial Highlights
Financial Highlights Radian Group Inc. Consolidated ($ in millions, except per share amounts) September 30, 2015 December 31, 2014 September 30, 2014 Total assets $ 5,760.9 $ 6,842.3 $ 5,940.9 Loss reserves $ 1,098.6 $ 1,560.0 $ 1,591.2 Unearned premiums $ 676.9 $ 644.5 $ 625.3 Long-term debt $ 1,23
Slide 82: Financial Highlights
Financial Highlights Radian Group Inc. Consolidated ($ in millions, except per share amounts) September 30, 2015 December 31, 2014 September 30, 2014 Total assets $ 5,760.9 $ 6,842.3 $ 5,940.9 Loss reserves $ 1,098.6 $ 1,560.0 $ 1,591.2 Unearned premiums $ 676.9 $ 644.5 $ 625.3 Long-term debt $ 1,23
Slide 83: Mortgage Insurance Returns and Pricing
Mortgage Insurance Returns and Pricing Grow earnings per share Grow market share Return on capital • Market share may • Blended returns of low to fluctuate given the mid teens landscape of demand • Quality of new business remains outstanding 83
Slide 84: Mortgage Insurance Returns and Pricing
Mortgage Insurance Returns and Pricing Total Projected Return on What influences our returns? Capital - NIW • Product mix – portfolio and new business • Price • Capital levels and structure • Loss assumptions • Duration assumptions • Reinsurance 4Q14 1Q15 2Q15 3Q15 Our projected returns on NIW have
Slide 85: Services Segment
Services Segment GAAP earnings for this segment include – Corporate allocations of shared services and administration – Interest expense associated with debt financing Internal performance is measured by pre-tax, pre- allocation operating income 85
Slide 86: Services Segment
Services Segment Services segment provides optionality – Enhances the overall service capabilities of the broader franchise – Revenue diversification – growth rate faster than MI Some transactional, some recurring revenue Efficient user of capital How we measure success – Monitor absolute gr
Slide 87: Expense Management
Expense Management RADIAN
Slide 88: Expense Management
Expense Management Goal is to increase the rate of revenue growth faster than the growth rate of expenses (positive operating leverage) MI core expense ratio target is 20% – If achieved solely through expense saves, approximately $30 million in annual expense reduction from current levels or if
Slide 89: Conservative Investment Portfolio
Conservative Investment Portfolio Total investments of $4.4 billion as of September 30, 2015 Invested Assets by Type Investment Portfolio Credit Quality 89
Slide 90: Capital Structure
Capital Structure Total capitalization (as of September 30, 2015) Carrying value Principal % of total Coupon ($'000) ($'000) capitalization(3) 9.00% Senior Notes due 2017 $191,752 $195,500 5.50% Senior Notes due 2019 $295,472 $300,000 5.25% Senior Notes due 2020 $343,825 $350,000 Total Senior Notes
Slide 91: Summary
Summary High-quality mortgage insurance in force Expected earnings growth from improved performance of MI portfolio Using pricing discipline to achieve strong targeted returns on NIW Continued improvement in delinquency trends Strong capital position – and getting STRONGER Strong holding
Slide 92: Questions?
Questions? RADIAN
Slide 93: Safe Harbor Statements
Safe Harbor Statements All statements made in this presentation that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the
Slide 94: Safe Harbor Statements (Continued)
Safe Harbor Statements (Continued) • changes in the charters or business practices of, or rules or regulations imposed by or applicable to the GSEs, including: (1) the implementation of the final PMIERs (including as updated on June 30, 2015 to increase the amount of Available Assets that must be he
Slide 95: Safe Harbor Statements (Continued)
Safe Harbor Statements (Continued) • the amount and timing of potential payments or adjustments associated with federal or other tax examinations, including deficiencies assessed by the Internal Revenue Service (“IRS”) resulting from the examination of our 2000 through 2007 tax years, which we are c
Slide 96: EXPO Program
EXPO Program
Slide 97: Expo Program
Expo Program • Clayton Holdings – Subsidiary of Radian Group – Provides risk-based analytics, residential loan due diligence, consulting, surveillance and staffing solutions – Clayton subsidiaries include: Green River Capital, Red Bell Real Estate, ValuAmerica and Clayton Euro Risk • Clayton Surveil
Slide 98: Expo Program
Expo Program • Radian Guaranty – Subsidiary of Radian Group – Provides private mortgage insurance to protect lenders from default-related losses, facilitate the sale of low-downpayment mortgages in the secondary market and enable homebuyers to purchase homes more quickly with downpayments less than
Slide 99: Expo Program
Expo Program • Red Bell Real Estate – Subsidiary of Clayton Holdings – Leading-edge valuation products, including automated valuation models (AVMs) and broker price opinions (BPOs) used by major investors, lenders and loan servicers – Advanced technology solutions that help investors monitor loan po
Slide 100: Biographies
Biographies
Slide 101: Teresa Bryce Bazemore
Teresa Bryce Bazemore Teresa Bryce Bazemore is President of Radian Guaranty Inc., Radian Group Inc.’s principal mortgage insurance subsidiary. As President, Ms. Bazemore is responsible for all domestic and international mortgage insurance business operations. Prior to her appointment as President, M
Slide 102: Derek Brummer
Derek Brummer Derek Brummer is Executive Vice President and Chief Risk Officer of Radian Group Inc. In this role, Mr. Brummer is responsible for all aspects of the risk management strategy and framework, as well as evaluating credit policy for Radian and its subsidiaries. Mr. Brummer joined Radian i
Slide 103: Joe D'Urso
Joe D’Urso Joe D’Urso is President of Clayton Holdings LLC. He joined Clayton in November 2013, and is responsible for the overall operating results of the company. He has been in the financial industry for 23 years spending the majority of that time in the mortgage and real estate capital market se
Slide 104: Frank Hall
Frank Hall As Executive Vice President and Chief Financial Officer, Frank Hall is responsible for all financial functions, including regulatory and management reporting, financial planning and analysis, capital planning, acquisition integration, tax and treasury and facilities at Radian Group Inc. H
Slide 105: S.A. Ibrahim
S.A. Ibrahim S.A. Ibrahim is Chief Executive Officer of Radian Group Inc. Prior to joining Radian in 2005, Mr. Ibrahim was the CEO of GreenPoint Mortgage Funding based in Novato, California. Under his leadership, GreenPoint Mortgage transformed itself from a small mortgage originator to one of the l
Slide 106: Emily Riley
Emily Riley As Senior Vice President of Corporate Communications and Investor Relations of Radian Group Inc., Emily Riley directs investor relations, public relations and brand strategy for Radian. Ms. Riley first joined Radian in 1995 and served in various corporate communications, investor relatio
Slide 107: Cliff Rossi
Cliff Rossi Dr. Cliff Rossi is Senior Vice President and Chief Economist of Radian Group. In this position, Dr. Rossi is responsible for research, forecasts, quantitative analysis and financial modeling of Radian’s mortgage insurance portfolio and the housing and mortgage markets. Dr. Rossi is an Ex
Slide 108: Contacts
Contacts Emily Riley SVP, Investor Relations and Corporate Communications 215.231.1035 [email protected] Terri Perry Manager, Investor Relations 215.231.1486 [email protected] Rashi Iyer Director, Corporate Communications 215.231.1167 [email protected] 108
Slide 109: RADIAN
RADIAN Ensuring the American Dream®