Radian Group Inc. reported a second-quarter profit Wednesday on lower loss provisions as other mortgage insurers, pressured by higher default rates, reported losses.
The Philadelphia company also said it has rescinded (rejected) a growing number of claims on grounds that false information voids its coverage.
Its net income was $231.9 million, or $2.82 a share, compared with a loss of $392.5 million, or $4.91, a year earlier.
"Our recent denial[s] and rescissions are much higher than historical levels, reflecting our loss management efforts to review more claims and the significant concentration of loans in our delinquency portfolio" originated in 2006, 2007 and early 2008, chief financial officer Robert Quint said in a conference call.
"An increase in denial and rescission estimates has the effect of lowering our loss-reserve estimate," he said.
Radian's provision for mortgage insurance losses was $142.8 million, compared with $449.2 million the year earlier.
