Clayton Holdings LLC, a unit of Radian Group Inc. (RDN - Free Report) , recently made a wise and strategic decision to provide an all-inclusive securitization readiness solution for non-agency assets. This solution will not only boost Radian Group’s service portfolio but also help the lenders and aggregators in the compliance process, pertaining to private label securitizations (PLS).
Details of the Offering
The newly offered end-to-end solution will comprise advisory and preparedness support for pre-securitization due diligence review, originator, along with guideline assessment and a continued monitoring structure and setup. Further, this solution will contain an analysis of pertinent scope and process requirements, which in turn will include an evaluation of credit underwriting, data management, regulatory compliance, valuation as well as possible frauds. Interestingly, this evaluation will be one that the rating agencies would likely accept.
Benefits of the Offering
Creation of this comprehensive solution aims at simplifying the compliance process for lenders and aggregators with respect to new demands and expectations for PLS. Also, the solution will make sure the asset reviews and reporting abilities satisfy the current guidelines before the issuance.
Right now, a lot of lenders and aggregators are contemplating to enter the private label securitization market or at least making sure to prudently weigh their options. In this regard, the solution will enable the clients to expedite the process and prepare the earlier private label issuers to face new requirements in the near term.
Notably, the offering also marks another instance of Radian Group’s collaboration with Clayton Holdings when it comes to providing contemporary products and services to the mortgage industry.
The new offering will also add substantial value to Radian Group’s already solid service portfolio to help the company improve its near-term results, boosting overall growth in the long run.
Zacks Rank and Share Price Movement
Radian Group currently carries a Zacks Rank #3 (Hold). Shares of Radian Group have gained 23.49% in a year’s time, underperforming the industry’s 24.48% increase. However, we expect bottom-line growth, net premium growth and improving mortgage insurance in force to turn the stock around in the short term.
Stocks to Consider
Some better-ranked stocks from the insurance industry are First American Corporation (FAF - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Argo Group International Holdings, Ltd. .
First American Corporation provides financial services. The company delivered positive surprises in all the last four quarters with an average beat of 12.64%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CNO Financial develops, markets and administers health insurance, annuity, individual life insurance and other insurance products for senior and middle-income markets in the United States. The company delivered positive surprises in three of the last four quarters with an average beat of 6.69%. The company holds a Zacks Rank #2 (Buy).
Argo Group underwrites specialty insurance and reinsurance products in the property and casualty market worldwide. The company delivered positive surprises in all the last four quarters with an average beat of 26.51%. The company carries a Zacks Rank #2.
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