Section 8 – Other Events
As previously disclosed, Radian Mortgage Capital LLC (“RMC”), a Delaware limited liability company and an indirect subsidiary of Radian Group Inc. (“Radian Group”), is a mortgage conduit that acquires residential mortgage loans with the intent to distribute such loans into the capital markets through private label securitizations or direct sales to mortgage investors.
On, July 11, 2024, RMC announced its inaugural private label prime jumbo securitization transaction. Pursuant to this offering, RMC intends to proceed with an issuance of residential mortgage-backed securities (“RMBS”) with a newly-formed subsidiary, Radian Mortgage Securities LLC, a Delaware limited liability company, as the depositor of the residential mortgages (the “Depositor”) and with a newly-formed New York common law trust, Radian Mortgage Capital Trust 2024-J1, as the issuing entity with respect to the RMBS (the “Issuing Entity”). In connection with the proposed transaction, (i) RMC expects to sell approximately $349 million of residential mortgages to the Depositor which the Depositor will then deposit with the Issuing Entity and (ii) the Issuing Entity expects to simultaneously issue approximately $349 million of unregistered RMBS to capital markets investors. RMC and its affiliates (excluding its mortgage insurance affiliates) may hold an interest in the unregistered RMBS from time to time, including on the closing date.
The RMBS offering is expected to close during the third quarter of 2024, subject to market and other customary conditions. There can be no assurances that the RMBS offering will be completed.
The securities described herein have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This Current Report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful.
All statements in this Current Report on Form 8-K that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements include our expectations about the ability to complete the RMBS offering on the expected terms and timeline and are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment where new risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of Radian Group’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports filed from time to time with the Securities and Exchange Commission. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.