"While there is little Radian can do about the current state of the market, we can certainly do and are doing our best to mitigate the effect of the housing downturn," Sanford A. Ibrahim, Radian's chief executive, said during a conference call with analysts.
For example, Radian hired the Consumer Credit Counseling Service of the Delaware Valley to call borrowers in danger of defaulting on mortgages insured by Radian to help them get back on track.
David Applegate, president of Radian's mortgage insurance business, said the nonprofit group is 25 times more likely than its own employees to reach the borrower.
Even so, Radian officials said the company still expected to pay about $1 billion to lenders to cover mortgage defaults. The company has reserves of $1.74 billion to pay lenders when borrowers default.
Radian's shares were up 12 cents, or 2.2 percent, to $5.55 on the New York Stock Exchange.
A larger competitor in mortgage insurance, PMI Group Inc., of Walnut Creek, Calif., reported a net loss of $273.96 million in the first quarter. Last year, the company earned $102.03 million. A big chunk of this year's loss came from the complete write-down of PMI's investment in the bond insurer Financial Guaranty Insurance Co.
Another bond insurer, MBIA Inc., of Armonk, N.Y., recorded a $2.41 billion loss in the quarter because of a $3.58 billion write-down of derivatives. Nevertheless, MBIA's shares climbed 4.4 percent, or 42 cents, to $9.85 on the New York Stock Exchange.
For the latest quarter:
Orleans Homebuilders Inc., Bensalem
Revenue: $113.3 million
Loss: $55.7 million
Loss per share: $3.01
"We do have a game plan for our future," chairman and CEO Jeffrey P. Orleans told investors.
Radian Group Inc.,
Revenue: $964.4 million
Loss: $215.2 million
Loss per share: $2.69
Net income: Due to a noncash gain, Radian reported net income of $195.6 million, or $2.44 per share.
"We can certainly do and are doing our best to mitigate the effect of the housing downturn," CEO Sanford A. Ibrahim told analysts.
Contact staff writer Harold Brubaker at 215-854-4651 or email@example.com.