PHILADELPHIA - Radian Guaranty plans to announce today that it will offer discount pricing to customers ordering mortgage insurance through its Web site.
Whenever a qualifying lender orders an insurance policy online, the company will shave 5 basis points off the annual premium. This applies to policies paid for by the borrower or lender as well as to captive reinsurance arrangements, in which the lender shares some of the risk and revenue with the insurer.
The discount is available to current customers or new ones the company accepts, a spokesman said. It cannot be added to other discounts, nor is it available to lenders that practice risk-based pricing, customizing price to the individual borrower.
The spokesman said that it costs less to take orders online, and that Radian wants to share some of the savings with its customers. The discount will be of greatest benefit to small and midsize players, since big lenders already get favorable pricing, he said.