Radian Group Inc RDN, a mortgage insurance provider, announced on Wednesday that it now meets the Private Mortgage Insurer Eligibility Requirements (PMIERs).
PMIERs establishes the requirements that a private mortgage insurance company must meet to be an approved insurer and provide mortgage guaranty insurance on loans acquired by Freddie Mac and Fannie Mae.
The new requirements come into affect on December 31, 2015.
Radian Group noted a series of financial transactions to comply with the PMIERs, including a transfer of $325 million of cash and marketable securities to Radian Guaranty in exchange for a surplus note with 0 percent interest and maturity on December 31, 2025.
Following the transactions, Radian Group said it will still maintain approximately $300 million of currently available liquidity as of December 31.
"While we could have satisfied the PMIERs financial requirements through a permanent capital contribution, the surplus note is an effective way to optimize our capital and liquidity positions given our positive future outlook,"Radian's Chief Executive Officer S.A. Ibrahim said in the press release.
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