Radian Guaranty Inc., the private mortgage insurance (MI) subsidiary of Radian Group Inc., has announced that it will begin offering a unique program, the Responsible Homeowner Reward (RH Reward), to encourage borrowers, who recently modified their mortgages through the U.S. Department of the Treasury’s Home Affordable Modification Program (HAMP), to remain current on their new mortgage payments. HAMP is a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments.
“We believe it’s important to support responsible borrowers who modified their mortgages to try to keep their homes, by recognizing their efforts to remain current on their payments in these difficult economic times,” said Scott Theobald, Radian’s Chief Risk Officer. “Radian is committed to sustainable homeownership and we are pleased to offer the RH Reward program to our insured homeowners.”
Administered exclusively by Loan Value Group LLC, the RH Reward program pays cash rewards to eligible homeowners for making their mortgage payments on time. Radian selects eligible homeowners for enrollment in the program and a reward account is then established in their name that grows with each on-time mortgage payment, up to a maximum amount. The reward is paid in cash when the mortgage is refinanced or paid off and the homeowner pays nothing to participate, remaining eligible by simply making their mortgage payments on-time.
“Our RH Reward program, which operates in nearly all 50 states, is designed to target and reduce negative equity for nearly 12 million underwater borrowers and has the proven ability to positively influence payment behavior—lowering default rates by more than 50 percent since 2010,” said Frank Pallotta, a managing partner with Loan Value Group. “We are pleased to be partnering with Radian and admire their commitment to homeownership in the communities they serve.”