Mortgage insurer Radian said Friday that as a result of current market conditions, the company would no longer be able to insure stated loans.
Basically anything with a stated element will no longer be eligible for mortgage insurance, including SIVA, SISA, No Ratio, SISA, NINA, and No Doc, some of which were previously unacceptable.
The new guideline will be effective come April 30 for all mortgage insurance applications received, leaving Full Doc loans as the only viable option.
It’s unclear at the moment if the other major mortgage insurers will follow suit, although it wouldn’t be much of a surprise if they do.
It’s been a bumpy year for Radian, who had agreed last February to a $4.9 billion buyout by rival mortgage insurer MGIC that was eventually scrapped in light of the deepening mortgage crisis over the summer.
Shares of Philadelphia-based Radian were down 9 cents, or 1.34%, to $6.64 in morning trading on Wall Street, well below their 52-week high of $63.95.