“We were able to achieve this growth quarter-over-quarter while continuing to increase pricing for recent originations,” Sumita Pandit, chief financial officer, declared during the earnings call.
A year ago, Radian’s NIW was $18.9 billion.
The gain in NIW was broad based, added Derek Brummer, president of mortgage.
“When we see shifts in terms of volume, it’s really going to be focused on where we find relative value and where we find kind of the highest economic value,” Brummer explained. “If you saw any movement with respect to credit mix, it was probably a little bit on the higher FICO, where we saw relative value as kind of the driver.”
Radian earned $146 million in the second quarter, down from $158 million in the first quarter and $201 million one year prior.
Its real estate services business, branded as homegenius, includes its title insurance underwriter. This segment remains in the red, with an adjusted pretax loss of $24.4 million, compared with $23 million in the first quarter and $17.7 million for the second quarter of 2022.
“We maintain a realistic view of the current state and opportunity for homegenius, and we will continue to adjust our cost structure and align our strategy and investments to place homegenius on a path to profitability,” CEO Rick Thornberry said.
