Radian Group Inc. (RDN) has released an update to notify the public and investors about an entry into a material definitive agreement.
Radian Group Inc. guaranteed the obligations of its subsidiary, Radian Mortgage Capital LLC, under a $150 million mortgage loan repurchase facility with Flagstar Bank, established by a Master Repurchase Agreement expiring on January 27, 2025. This uncommitted facility allows for the repurchase of residential mortgage loans, with interest rates comprising a pricing spread plus SOFR. The agreement includes standard default provisions and rights for Flagstar to demand additional collateral or cash if asset values decline. Radian Group’s obligations under the Parent Guaranty are subject to customary covenants and financial requirements consistent with previous credit facilities.
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For a comprehensive understanding of the announcement, you can read the full document here.
