Radian Guaranty, Philadelphia, has launched a new program, called Radian FastAdvance, designed to provides quick, partial claims advances that allow residential mortgage servicers to assist distressed borrowers by modifying the terms of a loan (such as a rate reduction) or by structuring a customized repayment plan. The company also announced a partnership with Consumer Credit Counseling Service of Delaware Valley (CCCS) that will provide education, customized assistance, and a method of direct communication between borrowers and servicers using the Radian FastAdvance program.
Mortgage insurance companies have been hard hit during this downturn and losses will mount if companies can't find ways to keep mortgage borrowers from walking away from their properties. Radian says there is no single solution that will help every borrower and so the company is advancing funds to servicers so they can take the specific action required to keep borrowers in their homes rather than proceeding with a stressful and costly foreclosure process.
The partnership with Consumer Credit Counseling Service of Delaware Valley will provide borrowers access to third-parties that can assist them in sorting through all of their options.
"The combination of the Radian FastAdvance program and the partnership with the CCCS is a sign of progress in helping borrowers and servicers navigate what has been a very difficult market environment," said Paul Fischer, Radian Guaranty's Executive Vice President of Loss Management. "Having such a respected, independent counseling organization available will give individual borrowers the confidence to work through their situation."
Radian says servicers are already making use of the new program.