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Tuesday, December 23, 2014

Radian to sell bond guaranty business to Assured Guaranty, (NYSE: AGO), (NYSE: RDN)

Mortgage insurer Radian Group Inc said it would sell its bond guaranty business to Assured Guaranty Ltd for $810 million to focus on mortgages and real estate and comply with proposed changes to rules governing private mortgage insurers.The U.S. Federal Housing Finance Agency (FHFA) has proposed rules to tighten capital requirements for private insurers doing business with government-controlled mortgage finance firms Fannie Mae and Freddie Mac.The FHFA runs Freddie Mac and Fannie Mae through conservatorships after they were bailed out by taxpayers during the financial crisis."While we expect to fully comply (with the new rules), the sale of Radian Asset will help to accelerate our ability to do so," Radian Chief Executive S.A. Ibrahim said in a statement.

Assured Guaranty Ltd. (AGL) is a Bermuda-based holding company. Shares of AGO remained unchanged at $25.46. In the past year, the shares have traded as low as $20.02 and as high as $26.78. On average, 1726640 shares of AGO exchange hands on a given day and today's volume is recorded at 0.

Radian Group Inc. is a credit enhancement company with a primary strategic focus on domestic residential mortgage insurance on first-lien mortgage loans (first-liens). Shares of RDN remained unchanged at $16.28. In the past year, the shares have traded as low as $12.18 and as high as $17.50. On average, 2491970 shares of RDN exchange hands on a given day and today's volume is recorded at 10440.



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