mortgage insurance company Radian Group The company plans to lay off 70 employees in Pennsylvania in September, according to a Worker Adjustment and Retraining Notice (WARN) sent to the Pennsylvania Department of Labor and Industries.
The layoffs will affect Radian’s corporate headquarters in Delaware County and are expected to take place on September 13.
A spokesman for Radian wrote to house line These “are difficult decisions” and affected employees will receive severance packages.
“Over the past several months, we have placed a strong focus on aligning our expenses to reflect the market opportunities we see for each of our businesses. As a result, we have streamlined our technology team and personnel in various other areas to improve operational efficiencies. The warning notice reflects these recent actions,” the spokesperson added.
Radian’s most recently reported layoffs occurred in November 2022, when the company laid off 166 employees at its headquarters and Allegheny County, Pennsylvania, offices. Due to layoffs, the company now has nearly 1,000 employees.
Radian has been a profitable business, with net income of $152 million in the second quarter of 2024, compared with $143 million in the previous quarter and $158 million in the same period last year.
On the first-quarter earnings call, Chief Financial Officer Sumita Pandit told analysts that the company was engaged in “ongoing cost savings efforts” that resulted in a $2 million (or 2%) year-over-year reduction in combined services and other operating expenses.
Private mortgage insurance protects lenders from payment defaults when a borrower’s down payment is less than 20%. Radian’s default rate fell 5.5% in the first quarter of 2024 from the previous quarter, but increased by 10.6% from the first quarter of 2023.
According to its financial report, the company maintained $1.1 billion in available liquidity as of March 31, 2024.
In January, Radian announced strategic investment Fenlockled by the former Fannie Mae CEO Henry Carson. As a result, FinLocker customers (more than 40,000 loan officers, lenders, servicers and credit unions) have the opportunity to benefit from Radian’s integrated services family genius A technology suite for real estate hunting. Terms of the deal were not disclosed.
