Hybrid Mortgage Insurance
Hybrid MI is a cross between traditional mortgage insurance and financial guaranty
insurance that dramatically reduces over-collateralization requirements. The issuer employs a cash
reserve account and/or non-investment-grade layers of a capital structure to fund first loss. This
reduces the premium cost of the MI policy because the MI is in the second loss position. At the end of
the term, funds remaining in any reserve account are returned to the lender.
Radian structures hybrid MI for portions of mortgage pools composed of these loan types:
- Alternative A
- Second liens
To discuss Radian hybrid MI opportunities inside the U.S.,
contact Chris Curran, Senior Vice President, Capital Markets, +1 215 231.1041. For opportunities outside the U.S., contact Jeff Cashmer, Senior Vice President, International Mortgage, +1 215 231.1256.
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