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Radian Group Inc . (NYSE:RDN), a provider of mortgage insurance and related services with a market capitalization of $4.52 billion and annual revenue of $1.29 billion, has entered into an amendment to its existing Master Repurchase Agreement (MRA) with JPMorgan Chase (NYSE:JPM) Bank, N.A., as disclosed in a recent SEC filing. According to InvestingPro analysis, the company has maintained dividend payments for 33 consecutive years, demonstrating long-term financial stability. The amendment, effective as of June 5, 2025, allows Radian Mortgage Capital LLC, a subsidiary of Radian Group, to temporarily increase its maximum borrowing capacity under the MRA.
The MRA, originally dated January 29, 2024, and assigned to JPMorgan on July 22, 2024, facilitates the financing of residential mortgage loans acquired from correspondent lenders. These loans are intended for direct sale or securitization in the capital markets. The amendment, referred to as Amendment No. 2, grants Radian Mortgage Capital the ability to request an increase in the maximum borrowing amount, which has been set at $300 million until now.
On the same day as the amendment, Radian Mortgage Capital exercised this new provision, requesting and receiving approval for a $100 million increase in borrowing capacity, bringing the total to $400 million until June 30, 2025. This temporary increase is intended to support the company’s loan acquisition activities.
The terms of the MRA, including a Guaranty Agreement by Radian Group to secure the obligations of its subsidiary under the MRA, remain largely unchanged. The Parent Guaranty, first entered into on January 29, 2024, continues to be in effect following the amendment. InvestingPro data shows the company maintains strong liquidity with a current ratio of 3.48, indicating its liquid assets well exceed short-term obligations.
This strategic move by Radian Group demonstrates its ongoing efforts to manage financial flexibility in its operations. The full text of Amendment No. 2 has been filed with the SEC and is incorporated by reference into the 8-K filing. InvestingPro analysis indicates the company maintains FAIR overall financial health, with particularly strong scores in profitability and relative value metrics. For deeper insights into Radian Group’s financial position and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Investors and interested parties can access the complete details of the amendment in Exhibit 10.1 attached to the Current Report on Form 8-K submitted by Radian Group. The information provided in this article is based on the company’s SEC filing.
In other recent news, Radian Group Inc. reported its first-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $0.99 compared to the projected $0.96. However, the company’s revenue slightly missed forecasts, coming in at $318 million against the expected $319.24 million. Despite the revenue shortfall, Radian demonstrated strong financial health, with an 11% year-over-year increase in book value per share and a net income of $145 million. Additionally, Radian Group announced an expansion of its share repurchase program, authorizing an additional $750 million, raising the total repurchase capacity to approximately $863 million. This move underscores the company’s confidence in its financial strength and commitment to shareholder value. Furthermore, Radian’s Board of Directors approved a regular quarterly dividend of $0.255 per share. In corporate governance developments, Radian’s shareholders approved all measures at its 2025 Annual Meeting, including the reelection of board members and the appointment of PricewaterhouseCoopers LLP as independent auditors. CEO Rick Thornberry expressed optimism about Radian’s strategic growth and capital return potential.
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