- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the Q3 2022 Radian Group Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker, Mr. John Damian, Senior Vice President of Corporate Development and Investor Relations. Please go ahead, sir.

John Damian

Thank you, and welcome to Radian's third quarter 2022 conference call.

www.radian.com. contains evening results the and of website which was the Investors release, our yesterday issued is at press Radian's for financial quarter, section Our posted to that This equity. will including press pretax adjusted share income income, net operating certain operating and release non-GAAP adjusted adjusted be during net today's includes discussed call, operating per diluted measures return on

measures or GAAP discussed be adjusted Homegenius A Also Financial specifically other of of Today, non-GAAP Homegenius website. income be for pretax Chief exhibit Thornberry, portion Derek be release will may of most Radian profit, are Executive gross our related may the segment, Frank exhibits non-GAAP in These call before Officer; is our operating Mortgage. the Rick in Chief today addition, complete corporate for G. will adjusted the F press found In Investors that President include the these Officer. of Brummer, to on and all allocated expenses Radian's on release, loss operating Q&A reconciliations measures hear and found measures hand from Exhibit comparable description the and of margins. profit section press you our measures of Hall,

begin, and to this to results current would expectations, subject projections may that call Before estimates, materially. These are you we are which during I risks on based like assumptions cause will made differ statements. comments remind to statements include forward-looking uncertainties, and actual that

included our reports are the XX-K release and These forward-looking also with review in cautionary factors regarding earnings included risks, SEC. available statements in please these of risk Form filed our on and our XXXX discussion website. the a For subsequent the statements

turn Now the Rick. over call I'd to to like

Rick Thornberry

joining Thank another to markets, and macroeconomic quarter and very you of Despite for in Radian. interest afternoon. am and Radian. you, pleased for report environment I today mortgage real a all estate challenging good for us and cooling your Thank John, the strong

economic remain capital future our of of Our of mortgage our the discuss our resources. value and three shortly. our creation, growing and results growing will financial Frank teams areas details earnings the managing portfolio, across our focused Homegenius business strategic value insurance

let XXXX, high financial the geopolitical a a is begins, of today's of been specifically including positioned how it the shift and mortgage has interest credit share widening thoughts more real macroeconomic are a very observations the road and across and there XX-year rates, spreads he about significant a country. market volatility, rate has navigate rate and a low and macroeconomic job a market all inflation, in Before our few to significant increase heightened ahead. Clearly, resilient impact me and unemployment the despite in dramatic This estate markets risk. environment, business we a on

in business, factors through [technical duration and our loan and underwriting terms of important of the and For claims most aside servicers, the at origination of difficulty] the of the paid, of one level cycle. strength unemployment from ultimate is the quality

the to has profile monitoring meaningful the of underwritten. with embedded our The a range We forecasts related unemployment has economists news projected credit equity. portfolio overall that is are It closely strong wide well path. by good been

have greater borrowers equity home. approximately portfolio fact, In our XX% in default their of today in than XX%

the Additionally, to and distributed risk the of amount significant capital we markets. a have reinsurance

reversal for homes across the the for years, of now shortage prices begun range And been There are an the challenged in standards. another housing which are after assess move. gain important from rate we millennials risk affordability a mid-X% low rates expected to inventory evaluate low which to showing leveraging to Home next millions mortgage prime to stock, is of price existing the and slow a homeowners are this is real affordable And we've of age prices, estate proprietary home variable significant issue, a balance. cycle. of created in portfolio continue and historical an housing highs based where protects have market the and saw home remains years, is in further rapid a certainly the in has believe sale to on markets, few and on a past their several home a likely less geographic to although record rise perspective, there reach and have note by in our that our supply the extreme buying for and X-year X% the demand run a country. Over basis, the market analytics strengthens sales mortgage

short from into stable XXXX and for national of XXXX agree mortgage reaching originations homes smaller rates decline believe Although a may perspective, first-time origination XX-year and The the the which to support of in single-digit while to somewhat past market expected peak prices remainder ahead, will for provide growth more interest call nationally, across XXXX, a applications mortgage XXXX purchase high, with in home years mortgage affordable have supply market fell economists origination than XXXX. we mortgage decline tailwinds last which low. a forecast, greatly of doubled healthy in month purchase lead to XXXX, more the most and generally and number year, and market a for a expect housing demand and strong beyond. homebuyers the And over local from We to to to a recent XX-year vary the markets. market the in from continue trough will

environment. minutes this are spend positioned navigate we discussing few me how successfully to a Let

risk-based focused to even our attractive in platform profile Rates the we to In see our we economic businesses, on we the and And leveraging expect the opportunities as economic challenging, the volumes market. continue aggregate, volatility slow opportunities remains lowering manage terms the to expect to we've year, risks of business. our work through-the-cycle see mortgage insurance and and execute to been for risk-adjusted focused business over current to returns. driving distribute analytics environment pricing mortgage our dynamic of model put our capital risk and segment, NIW value, address continue on at the that calibrate we proprietary and will the our Radar able to By next

have mortgage modestly increasing better We well. environment of and have been our peers pricing increases evidence to our some as reflect seen among today's price insurance

income our bottom mortgage large we line. directly portfolio, that rates is manufacturing resulted fuel most rates a continued across in to valuable incremental And continued servicing increase our that flows driving reminder, higher which yields has perhaps the across portfolio higher which the mortgage also quality persistency in expect in As interest interest our And in-force and insurance portfolio, processes the growth. increase is the billion $X.X strong. loan investment and remain industry's generates important of to

the For further and revenues due our third to industry-wide a estate Homegenius real mortgage we the in decline during transaction decline Homegenius quarter segment, rapid in experienced line.

albeit adjustments real the at growing future As to Frank real products estate a financial result, to Homegenius results. reinforce reduced will brokers, business we opportunities to are an changes environment. helps this market due for growth on making estate expected than which expense interest the our lenders, to necessary provide and continue conditions. originally update Despite the see a and slower pace Homegenius our we agents in market the in from reflect to see our services we structure volume,

billion, which are $X.X liquidity, capital PMIERs Group well of under of At maintained holding terms and resulting for assets a cushion the us $X.X XX, In nearly or we available September million positioned XX%, approximately totaled company the navigate PMIERs well ahead. liquidity of positions this Guaranty's we environment billion environment. to $XXX Radian total believe Radian in

We nimble capital continue on PMIERs and manage best reinsurance by markets in of structures terms between capital to the to optimizing risk execution. remain required distribution utilizing based

terms excellence remain strategic structure, managing cost In also across businesses. we driving unchanged, while focused remain of our operational on our priorities our

evaluated months, current enterprise-wide strategic and several the structure environment reflect supporting plan to while market the developed expense Over and last a overall expenses align our priorities. to better have our our resources we

of rate these of first have and we our will cost provide begin reduce expenses, the operating fourth Frank During actions of to taken on expect we the third in realizing the quarter, XXXX. and services fully actions. quarter run details to which

our ensure you've We to remain adjustments by company significantly Mortgage the committed strategy framework, pricing is our risk-based the the our dynamic and markets. say across our to before, are help capital and and reflective built reinsurance our strengthen withstand business that PMIERs are and the economic heard to into success. to Homegenius environment risk making structure economic of cycle, capital me As the of cost distribution businesses

leaders strategic that with continue products from needs. outstanding loud our services. work to Our for Bankers and relationships and through Association the the set innovative team and their over met to industry to emerging we provide Homegenius and industry with lower Mortgage other to clear term, our CEOs of I core at meetings the we well that team meet heard hosted solutions discussing the our the their Mortgage customers our our Convention, competencies to reality services to management data are leverage of was many our to from Radian will Homegenius needs. well and XXX ecosystem becoming future future. I as the personally them more estate portfolio, to And just indeed want businesses related believe products listen across near and and real financial and our and combined future. while they products towards need that passionate and the to increasingly volumes customer real estate drive strategic and innovative flexibility navigate diversified risk analytics products of clear to reimagine assets our and digital their our experienced a well and valuable set as my our capital in innovative are insurance mortgage across they success. high-quality them digital today as credit and It We valuable with meetings me us position Annual strong

the financial like for to to Frank Now I our position. call of over turn details would

Frank Hall

$X.XX share reported quarter share Thank per $XXX.X you, million quarter or the of diluted income key revenue. compared $X.XX XXXX third quarter good in income as evening, recap per and now Adjusted diluted drivers diluted turn quarter was financial our in in diluted of per second net quarter for I'll and $X.XX of the the third the of quarter Rick, XXXX to share the $X.XX last operating to XXXX of and in issued the we share GAAP the of everyone. To results $X.XX $X.XX per second to third compared XXXX. XXXX. share per in third net our XXXX of of afternoon,

written $XX.X XXXX. billion compared to the second new billion $XX.X XXXX in insurance of quarter in was quarter the of billion third $XX.X Our during and quarter the

for written decrease was Purchase purchase third in XXXX for total insurance transactions third XX% written year-over-year. billion, quarter accounted our of insurance for of $XX.X to New of volume the XXXX. a the compared of XX% quarter new XX%

Our quarter reported quarterly year annualized force this XX.X% billion to showing increased persistency Primary quarter, compared rate to X.X% XX.X% $XXX.X growth year-over-year. of this insurance to increased in ago. a

the and trend our represents on Total Webcast our our in quarters, XXXX growth five the XXX to yield year-over-year premium $XXX.X starting single million to $XXX.X full is our points on We XXXX reinvestment second of were third our earned reinsurance in the XXXX, XXXX rate expectations be trend an interest increase X.XX% due is to year expectation XX. investment to quarter third quarter of this basis during the yield recent insurance portfolio, due is XXXX. consistent future including third the in cash investment full portfolio yield to shows ceded approximately in-force from and in earned yields growth X%. webcast quarter of and and the our are normalized grown in the XX% expectations premium The approximate This of The increased contributed Monthly million in policy slowing direct on a related quarter to modifying $XXX.X insurance XX has in rising share down continue quarter from increased force Slide remains to portfolio insurance in-force the premiums since about environment premium of decline our our has same of quota most investment compared reduction XX% our the to expectation originations. to over Slide two million previous in the rate unchanged. basis shown with past impact has income total this NIW of year of net to rate year premiums agreement prior income XXXX. of X.X% for and in expected positive mortgage flows. for compared to XX% quarter reconciliations This and quarter year third our XXXX force last approximately servicer year. the point as expected cancellations full net

during on a However, as value. increased losses in rates to and interest comprehensive period Since on our prior directly quarter unrealized these stockholders' primarily had portfolio, other market are our the income equity investment losses book end impacted unrealized quarter, the the rising values loss. accumulated negative which through and impact recorded negatively

noted these their unrealized to do expected to losses to losses expect par As our X, trend security webcast ability diminish realize we likely maturity, on Slide we have maturity date. hold and to are the have and they values as value not expected are as to we approach are to investments as the

operating strong ability cash and hold another to strengths. is flow financial our of securities Our to maturity benefit

for to million were quarter million the for quarter the second quarter million of Our $XX.X and in $XX.X Homegenius of $XX.X third the XXXX of compared segment third XXXX. revenues XXXX

loss reported XXXX XXXX. expenses pretax operating compared third of $XXX,XXX was operating quarter for for to and third million $XX for Our corporate the before Homegenius quarter the of second XXXX allocated the of quarter $XX million

$XX.X for be $XX.X on Homegenius on positive The has segment time. we cash segments million of comparable adjusted positive reconciliation and compared Homegenius XXXX. significant revenue, the landscape market found guidance the economic focus $X.X improving and all the In measures for the second remain over quarter uncertain on We resulting this segments. of million Rick earlier of flow third impact of Homegenius Homegenius are our on profit gross of withdrawing focused the our XXXX reported quarter was and volatility and Our non-GAAP achieving the G. operating quarter can the our of to for performance to Exhibit GAAP leverage prior on and discussed origination that overall continue measures creation profitability, light the to the third million XXXX, of

and provision Moving now our to loss credit quality.

Slide in of As quarter third and XXXX. $XX.X the assumptions estimated, a favorable webcast we reserve primarily of the driven aided second the for for accumulated the as in webcast provision for on prior a for This on of compared the $XXX.X loss previously of Slide noted benefit development XXXX XXXX than million. benefit $XX.X to of $XXX.X change positive losses in a of development our third third period prior provision by in Also, cures mortgage positive of quarter in was had million home quarter defaults. benefit defaults noted a of XX, on the million to XX, more million to price trends XXXX includes related resulted the losses by of appreciation, which quarter

that economic and in our could uncertainties newer claim in future And diverge Keep new the because buildup to impact quarter expected strong while vintages. vintages. as period price period cures in simply risks including we the for third claim has claims rate default quarter the to defaults our origination landscape. current home monitor older current it defaults associated rate experienced XXXX, defaults inventory for differently assumption While the is appreciation possible between X% our assumptions is than recent economic our our also appreciation also closely larger new rate there been of benefit current weighing with defaults continue in of and new price years a the directionally prior we to default defaults, the claim prior for on maintained for on at those the older mind origination to home trends expectations the and landscape assumptions

quarter from These quarter the second the XXXX, As largest default the cured. XXXX, trends quarter. positive XXXX for of have this reported COVID-related XX, catalyst XX% of reported new in favorable defaults primary of for development were defaults September the reserve

based in defaults the ultimate For first population the quarter quarter of to X.X% in share X.X% of this rate our reduced and additional quarter set large original of the reported quarter assumption on XXXX continued an we have rate context, assumption of XXXX. the X.X% to volume, second second last to approximately default for of compared claim the strong

press on mentioned significant our environment we a in been $XX on and better our to actions were $XX.X Rick a a increase the million the increase XXXX, upward to workforce expense and million million compared $XX to current XXXX. operating is our quarter quarter $X.X first million, on compared million primarily expense E. embarked third decrease expenses. million normalized related $X of XXXX and same have expenses expenses, segment to trend had offset to Now our $XX.X base operating and year in we increased in rate the operating to in as quarter $XX.X changes these by employee an the the almost a prior quarter quarter in fully expenses expect we implemented align run expect effort $XX basis. And and level the of analysis mortgage earlier, to million when in consolidated when other response of turning Homegenius work of between Other The have on of detail ongoing on third to our To be in be Based a to since prior the an what segment to operating in efficiency release million provided in of aid goals to expenses. second basis. levels our quarterly quarter we year operating recognized as of additional in expected expenses date, XXXX, expenses to impact begin Exhibit partially

also receive Homegenius XXXX expenses, cost line $XX to expect an in to services annual we million in other of reduction addition our segment. benefit item our our we In expect in the operating

run our provide and achieving our estimates updates to expense rate our on continue will efficiency objectives. progress in We

Now to capital moving liquidity. available and

As end quarter Rick the as available the mentioned, which third required assets $X.X assets minimum represents over of PMIERs Radian XX% Guaranty's billion PMIERs cushion. excess of was a

September XX, billion notes XXXX, risk $X.X K. arrangements by have of insurance-linked reduced on by reinsurance minimum Guaranty's noted As requirements and third-party PMIERs distributing we press through both Exhibit asset Radian release reinsurance as other

a the announced, of reinsurance see this Guaranty XX, a in began between third-party As arrangement June policies subject third rated XXXX, Radian XXXX, issued highly providers. Under reinsurance certain to XXXX, quota on agreement, new of to XX% the conditions. agreed X, previously the January and of panel with XXXX, terms July we in quarter exposure to on share

XXXX, Radian XX, of available facility, For which as includes $XXX the of was $XXX million of $XXX Group, September Total as we million liquidity. September XX, XXXX. maintained credit million company's liquidity, X-year

Our our Guaranty ordinary subsidiary. approval to XXXX, from be we Radian from from also pay XXXX, Group million of will regulators as prior liquidity available benefited September In dividend that XX, our $XX.X expect ordinary able a Radian dividends to without Radian Reinsurance first capital and is when potential in for compared time is the the expected that beyond. to muted amount based and since will other upon XXXX amount XXXX the The crisis. levels it great dividend payable financial be formula-driven before and statutory factors,

execution share represents adjustment our XXXX the the Since our earnings an programs. further third of an we purchased portfolio mortgage value in share program our loss. by and and returned X.X GAAP of investment share a average an through have as over accumulated market to XXXX, XX,XXX the the value value utilized the from at approach count. and Furthermore, share we XX.X shares also purchase when During under followed share temporary $XX.XX. the repurchase repurchased considering our we at billion discount insurance price share our remaining which $X.X average comprehensive purchasing October, expected shares our future month an of repurchase a repurchased share million portfolio noted at to shares price shares to other of of $XX.XX, of XX.X% average almost shareholders we XXXX, repurchased we quarter expected in-force of and historic income of beginning million repurchase value-based per our shares additional program price book authorization million of XX at discount per potentially The and $XX.XX. Year-to-date, have year book

also We continue stockholders. pay common to a to dividend

to returned dividends. activity have approximately to third million the Year-to-date stockholders over XXXX, share of through repurchase During and stockholders through returned million $XXX $XX quarter October, through dividends. we we both

be our Our risks optimizing of overall economic upon capital expected and cost consideration based of future our capital current the plans capital current capital structure broader needs and will continue business, of and the landscape. to in

resiliency, well turn I earnings mortgage businesses strength positioned the Radian to remain that capital to to back and over and believe the will we performance, portfolio, our in-force the and at we insurance support Given of future shareholders. expected now call our Guaranty deliver value Rick. our financial

Rick Thornberry

you, Thank Frank.

innovative highlight is on positioned macroeconomic your the our pleased that navigate economic to we We to services. open We Homegenius about want to our plans. the build mortgage excited focused environment value the are we and remain results on Before remain portfolio. the continue well call our strategic insurance insurance the response and I questions, with market executing and our to based team future believe of products our to of

We opportunistically dividend strategically cushion, company stockholders. maintaining capital repurchasing liquidity continue to paying the and strong the highest-yielding PMIERs and by to industry shares in holding manage

homeownership. noted quarter, and we success we're our our strategic we over operational aligning our resources our And businesses do years ensuring dream priorities. of proud American to know even unique I of are reflect excellence position driving to and a overall the And in environment the more. structure the extremely expense as are across and We market last in

color. And initiative want the would are thank for homeownership our team and people each happy leveraging outstanding work day. the focused Operator, barriers be is on addressing local homeownership and every affordable, of and questions. finally, take they equitable expertise we our help and to partnerships to I for access address affordable communities to homeownership doing to Our sustainable

Operator

Barclays. Please will question first today's go from Mark And DeVries ahead. Instructions] the [Operator come line with of

Mark DeVries

potential of thoughts on for the Yes implications adjustments comment GSEs? FHFA's business you thanks. your proposed could the any I on for may the hoping price have you was

Derek Brummer

tough Yes. certainly to change. to It's of is the We exactly kind Derek. the Thanks, what say Mark. impact's be. support This going

and helpful it's costs on modern think lowering borrowers. low income I in for terms focusing of

The reduction to event XXXX in on FHA still point, expectation side. that mind probably the is that thing see some we'd a other although our keep it's at a

be. what So say overall, we impact see huge don't say would expect the it's a to little I'd tough to a impact.

thing other kind a in market keep of The to been reduced bit FHA size. mind the in has

it So estimate if the of we market to increase probably being had MI it terms estimate the we'd in -- on its digits. in the single

Mark DeVries

And the helpful. thanks in then what That's you're Okay. -- for pricing. comments seeing on

you try your to Just returns curious, are that are risk pricing areas want manner selectively and all to in across you in avoid certain pricing to positive get? adjusting just a support Or don't target increasing you businesses?

Derek Brummer

Yes, Derek this again. is

in in upward of into QX pricing really pricing, So October. broadly been terms adjusting we've and

we And so are value. looking really about when we at pricing, think relative

So we adjust when we'll that, at pricing look we more. for see up instance, relative if value, less

layered segments, pricing, look we the pricing So up increased certainly XXX as FICO, risk potential of more on changes. the of below the uncertainty, macroeconomic for account at but adjusted price home some kind we into take

the I And more say, pretty so is generally, changes, what we've others. seen, some bit than overall areas broad-based I would think, a in industry

moving others. than some I faster think

half think than in more changes, market I pricing probably a QX. the terms latter the been overall of we've particularly bit our aggressive of in

light And think of that. see in a so expect share decrease to we in our about would market we as QX, NIW probably

Mark DeVries

very helpful. you. It's Thank Okay.

Operator

Suisse. come go Credit line moment the with ahead. One Please Harter question, that from of Doug our for you. Thank next will

Doug Harter

of the sense of Thanks, reinsurance, are seeing relative Sticking pricing that Can in that costs compare or the made you're the different with just market ILNs of policies kind on kind your the about just pricing. that relative higher change would how you've how you on a to and parts XOL risk. in talk to get of pricing

Derek Brummer

Sure.

past, So that, our talked risk distribution. of in pricing, and not factoring in in sitting of the this we've we're cost the as we're about terms

pieces find really, So clearing focus highest or trying We're market not the risk factoring we of in the have the macroeconomic where economic really that of levels. value in change relative distribution. to terms or view, market parts the and see in factoring value,

we've is on Now that distribution what risk wider the on the of ILN certainly, kind spreads being side said, much seen a market.

haven't kind traditional We reinsurance seen price the of as much. up market

closer our we terms see starting on widening view is think we're what it. and what the You're as seeing the And the of really business side ILN a and of writing warranted to clearing in market certainly, from the perspective, not you've bit I from level fundamentals perspective. little seen we're what by spread a more for I caused not us ILN value to We're light that to recently think terribly the is the And see issue in not just relative clearing that that given We levels of market the we has And in that. certainly being market surprising. the accretive us to hold see. market. risk that's

of market. the the market perspective over terms you the repricing way react sometimes So further they're from from could see those in away our who are

Doug Harter

that you. I Understood. appreciate answer. Thank

Operator

question, the will Please George our that for KBW. Bose line moment from go One ahead. of come next with

Bose George

that just you? cancellations Everyone, -- service terms cancellations of just reporting services like as Good quarter? ask that next the clarification a on more afternoon, does show just And up I a wanted that to lag to Is in reconciliation.

Derek Brummer

the short, on to is that answer point. right In yes,

Bose George

switching then to leverage, actually, and Okay. actually, leverage Great. buybacks. And

ticked a of little So a kind your more debt XX.X%, high to capital like range. the -- which bit your the end of above up little is is

you sort about more on we GAAP cadence? Or help think really GAAP contingency were going comfortable under we the earnings stick reserves driver? we in leverage? should allows do? doing of in Or Or excess as when sort XXXX. the should forward, So buybacks that of Or what to the does jump to really focus you

Frank Hall

Yes, Bose, this is Frank.

actually excuse me, impacted two about impacted there and points. of call basis, go-forward me, of have debt-to-cap current in things decrease a have that basis or that's the points debt-to-cap is On a are XXX or debt-to-cap excuse is the decrease One ratio, recently itself, basis then AOCI repurchase ratio. us another, a period it, -- our XXX on share and

amount the certainly, sort those both we of have. so share leverage. with One, have our comfortable of of And impacted we're factors buyback that very

our have October continues interim, we other of delever The is to an XXXX, But so further equity next we're mindful maturity grow. our up in one opportunity in the could to coming of, there.

comfortable are of where But we our that. altogether. in at sit the capital uptick we're mindful we're very So it near-term of why you've seen sort two an level drivers in obviously today, those and planning of very

Bose George

great. Okay, Thanks.

Operator

question. next ahead. you. One Please come with Bhatia Thank for of moment line America. of from the go our Mihir will Bank That

Mihir Bhatia

Hi, thank my you question. for taking

check I'm buyback another on that first surprised meetings thing I in -- to Is have with I'm seems what by the that, one think kind authorization? used a happened the something? to clarity I of just place. just one. timing mean you've all wanted you related like just Board a any I last the thing little to on clarity it want there? didn't just this surprised of or get

Frank Hall

Yes, Mihir, this is Frank.

put million a comfortable XXbX-X repurchase we when buying with that that. And very from comfortable has it as if we you're targets all put it, If And have you the we're had plan loaded when we quickly trigger in of book price. we maximum through place, plan so certainly went would to certainly that it very and were place shareholder the below say a the such with standpoint, value-based will, in because market term When impacts share I possibility. front-end We're the when value. back you in points that our that the to a authorization it. X-year XXbX-X you recall, conditions that relative market $XXX

capital have now is just delay plans overall say then to repurchase we're announced. are us And at want you've future actions it us economic say think we and that management when landscape relates always something capital actually plan the landscape the and announced extra to that them. not I share for the one I execute I thoughtful as around. would think plans some to is to very in This exhaust before are capital time a on we careful that now uncommon as past, perhaps heard be is our about right the

of capital. abundance an have We

good capital We of have into ongoing line a on an sight basis. flows our

thoughtful very uses just we and We we careful as where with want comfortable with that be very capital. always we're sit. are to the for So planned

Rick Thornberry

is Rick. this Mihir,

we reminds think many the always back. Frank bought when it's audience how I good shares

So million what, XX% XXXX, Frank? since and shares outstanding this of like XX Something think our shares. year, I

if think got number I've that I right.

Frank Hall

right. That's

Mihir Bhatia

Appreciate Thank you. that.

Operator

question. of for that Thank Please Hagen line go ahead. moment you. Eric the come BTIG. And next from One with will our

Eric Hagen

Hi, taking thanks my question. for

how First loan your one Like for for just is based drive that about at other do reserving factors relative debt-to-income you think ratio. of criteria on how driver is decisions in like a the level, big this credit reserving? to which environment

Frank Hall

loan about over Frank. estimates to Yes. delinquent the that I'll content information quarter expect do, This in see a as and loss our But the we it then that an reserve upon Derek. current reminder, we each make hand the estimate reserving portfolio. or just is to start based that accounting we

risk vintages in be in forward there factors, of in appreciation potential you're current et So older amount environment, where we the we et defaults I production take highlighted current account to simply views that's performance, the and think home is our activity, what production that could cure embedded historic best or as from relative into what prepared seeing economic performance, on there. seeing price which look far cetera, more vintages recent period we're to the because why a of as remarks do divergence cetera,

take when our reserves. to Derek, factors So that know into account we that. anything I -- that establish don't add you'd those we if are all

Derek Brummer

kind trends. kind would I by much of add reserve, drivers macroeconomic it's just the of of in of driven the more terms

kind of probability, to the at Once think home claim. view will significant characteristics trying roll of origination default determine to about of unemployment, become some the kind less appreciation, terms a those borrower borrower in terms So get is you reserving of again, to in of more it's price if it, are and appreciation into home Once a default, a then whether indicative in from default. becomes they driver default, as rates terms of, in a reemployment much in perspective. bigger more driver bit the of they're price

Eric Hagen

delevered. guys backdrop of you some has I seasoned you Maybe discuss the where flexibility have like the That's the against transactions materially as those it. to you at has relever can Got of ILN transactions I'm costs discussed. detail. structure more appreciate detachment higher risen point even the it. the capital helpful that have looking

Frank Hall

Frank. and I'll start Again, This additional color. Yes. to Derek it is hand for

this to if high, limited And really from distribution benefit are period, did us. we're at doesn't also it receiving risk PMIERs much perspective. the we when don't we a points ILNs As relatively attachment for purpose and expect distribution in see we're looking in particular, longer serve the much no risk for or credit it,

of the to unwind don't Derek, add you'd that. have we'll take I But advantage know anything. So extent those we to the if sooner, opportunity that

Derek Brummer

the done terms potentially do parties just think relever generally of add outstanding of one terms in can been in positions you potential the to in much is that of would about market. that terms as kind relevering, of purchase I thing potentially hasn't tranches

we perspective, our really sort structures that getting of we attach in analyze we those a don't -- we the then are what perspective structures. and call a and looking tail capital, of the terms relief capital of probability [technical extent that capital from from that place condition, risk in the keeping we're they and see provide that of return what at regularly, option cost kind structure difficulty] of in sort to kick So the terminate actually actually terms if of have cost will kind of when in of a

Eric Hagen

very much. helpful detail. But you Thank guys

Operator

remarks. And call at Thornberry showing would queue to any Rick further for over the no like back closing the now speakers, in time. I'm this I to turn questions Mr.

Rick Thornberry

in you share us thank moment all. thoughts Radian. you, your to I'd for and joining and a take and interest like Thank continuing all prayers today for to our with

and helping you in very familiar organization those gone incredible who injured And shares are are homes. the of the thoughts Ian. Hurricane destruction We with We call, share that's tragic there. to close of are with all our on familiar before with We're impacted. are prayers that we dealing some aftermath want down the Doors their protecting remain I mission that and or of to many the an know ill MBA enabling of our Open families with fundraiser homeownership annual our Foundation, critically by for

are this want for contribute truly And during convention. helped our level. have campaign the and at going treatment, just in to their and here we're launched and all through this outstanding While continue Radian dear to cause fundraise XX. it's MBA cause. professional a a this year's special We to on personal near children heart know, who to let thank of annual I to November you you to

learn this you, So you really about it we're we very enjoy passion I with such like you'd share around do wouldn't and visit to can radianopensdoors.com, it more. excited have but organization. supporting didn't the If calls, if

you thank joining, to and again, forward I next all you So look for speaking to quarter.

Operator

concludes This Thank conference you call. today's for participating.

disconnect. You may now

Radian (RDN) 4 Nov 222022 Q3 Earnings call transcript