Despite what CEO S.A. Ibrahim described as the stagnant housing market affecting his company's mortgage insurance business, Radian Group Inc. reported a first-quarter net profit of $103 million. The profit was driven by $319 million of fair market gains on derivatives.
Uncertainty about the aging inventory of delinquent loans persists, Ibrahim said in a conference call Thursday.
Although fewer new delinquencies are being received, loans with missed payments of 12 months or more now make up 52% of the inventory. The four-to-11-month bucket makes up 31%.
Ibrahim said that in recent months Radian has noted a slight increase in claims received as mortgage servicers resume foreclosure activities. The company expects $1.7 billion in paid claims this year.
Ibrahim also cited efforts by Radian and the industry as a whole to regain market share from the Federal Housing Administration. Radian's new insurance written in the traditionally weak first quarter was $2.6 billion, versus $1.9 billion a year earlier.
