Mortgage insurer Radian Group plans to lay off 70 employees in Pennsylvania in September, according to a Worker Adjustment and Retraining Notification (WARN) sent to the state’s Department of Labor and Industry.
The jobs cut will affect Radian’s corporate headquarters in Delaware County, with the separations expected to happen on Sept. 13. In the document filed July 12, the company said that the facility will not be closed as a result of workforce reduction.
A spokesperson for Radian wrote to HousingWire that these “were tough decisions” and impacted employees will receive severance package.
“Over the last few months, we have been highly focused on aligning our expenses to reflect the market opportunity we see for each business. As a result, we have streamlined areas of our technology team and various other areas to attain operational efficiency. The WARN notice reflects these recent actions,” the spokesperson added.
The most recent layoff reported at Radian occurred in November 2022, when the company cut 166 jobs at its headquarters and Allegheny County office in Pennsylvania. As a result of the workforce reductions, the company currently has nearly 1,000 employees.
Radian has been a profitable business, delivering net income of $152 million in the second quarter of 2024, compared to $143 million in the previous quarter and $158 million in the same period last year.
During its first-quarter earnings call, chief financial officer Sumita Pandit told analysts that the company was engaged in an “ongoing expense savings effort” that resulted in a $2 million (or 2%) year-over-year decrease in the combined consolidated cost of services and other operating expenses.
Private mortgage insurance protects lenders from payment defaults when borrower down payments are less than 20%. At Radian, defaults declined by 5.5% in the first quarter of 2024 compared to the previous quarter but were up 10.6% from Q1 2023.
As of March 31, 2024, the company maintained $1.1 billion of available liquidity, according to its earnings release.
In January, Radian announced a strategic investment in FinLocker, led by former Fannie Mae executive Henry Cason. As a result, FinLocker clients — more than 40,000 loan officers, lenders, servicers and credit unions — have the chance to benefit from Radian’s integrated Homegenius suite of technology for real estate searches. The terms of the deal were not disclosed.
