Radian Group Inc., one of the nation’s largest mortgage insurers, is singing the mortgage blues. Few people realize they are also tied to mortgage insurance and debt collection. This week, however, at least four securities lawsuits were filed against the company in U.S. District Court in Philadelphia.
Law firms representing shareholders are accusing Radian of making “materially false and misleading” statements about the financial health of an affiliate, Credit-Based Asset Servicing and Securitization LLC. Subsequent disclosures of problems at C-BASS, which invests in subprime home loans using borrowed money and packages them into securities, tanked Radian’s stock.
For a detailed look at Radian and bill collectors see a three part article prepared by Household – HSBC Watch and pay specific attention to part two. It might shock you.