Shares of Radian Group (RDN) rallied nearly 6% on heavy volume in late morning trading Monday, following the publication of final mortgage insurer guidelines from Fannie Mae (FNMA) and Freddie Mac (FMCC) late on Friday.
The Federal Housing Finance Agency, which oversees government-owned, mortgage-investment companies Fannie and Freddie, announced softened mortgage insurers’ rules, Bloomberg reports.
It eased capital requirements on some loans from 2005 through 2008, in cases where borrowers steadily met their commitments, Bloomberg added.
“We view it as a big win” for MGIC Investment Corp. (MTG) and Philadelphia-based Radian, MKM Partners’ Darren Marcus and Harry Fong said in a note to clients Monday.
The rules kick in at the end of the year.
RDN shares recently gained $0.96 to $18.11. In the past 52 weeks, shares of the company have traded between a low of $12.18 and a high of $18.16. Shares are up 30% year-over-year and 8.43% year-to-date.