Radian Gets Boot In Pennsylvania
August 6, 2002
State Is Seventh To Ban Sale Of Lien Protection Product
Inman News Features
Pennsylvania has become the seventh state to ban the sale of Philadelphia-based Radian Guaranty's lien protection product, according to a bulletin issued by the American Land Title Association, which represents 2,000 title insurers and affiliated companies in the United States.
California, Texas, Florida, Connecticut, North Carolina and New Mexico also have blocked Radian from selling the product, according to ALTA.
ALTA EVP James R. Maher said Radian is the "most aggressive" of several companies offering a so-called "alternative" to title insurance.
"The problem is that the alternative insurance does not involve a full title search, does not provide the protection of traditional title insurance, and does not provide the industry's legal defense guarantee," he said.
Radian's product is a type of mortgage pool insurance that Radian has said can be used in mortgage-backed securitizations with refinances, second mortgages and home equity loans. The insurance provides protection from a borrower's default for a broad range of losses, including losses due to undisclosed prior liens. Radian claims the product is not a form of title insurance.
Copyright: Inman News Service