PHILADELPHIA--(BUSINESS WIRE)--Radian Group Inc. (NYSE: RDN), announced today the sale of Clayton Services LLC to Covius Holdings, a leading provider of technology-enabled solutions to the financial services industry. Clayton Services, acquired by Radian as part of Clayton Holdings, provides loan acquisition, RMBS securitization and distressed asset reviews and servicer and loan surveillance services. The sale is consistent with Radian’s strategic focus on its core mortgage and real estate businesses and reflects the repositioning of its Services segment initiated in 2017. Terms of the transaction were not disclosed. The company does not expect the sale of Clayton Services to have a material net impact on Radian’s future financial results but does anticipate that for the fourth quarter of 2019 it will record a pre-tax, non-cash impairment of goodwill and other acquired intangible assets of approximately $18.5 million related to this transaction without reference to other factors affecting its fourth quarter results.
“The driving force behind all that we do at Radian is our focus on our core mortgage and real estate capabilities and our commitment to serving the strategic needs of our clients,” said Chief Executive Officer Rick Thornberry. “We continually evaluate and refine the strategic solutions that we offer across the mortgage and real estate value chain, and part of that evaluation means making adjustments when necessary. We will continue to focus on building our core mortgage and real estate products and services through a data-driven, digital transformation that has come to define our One Radian strategy.”
In addition to its core Mortgage Insurance and Risk Services businesses, Radian will maintain all of the services and products offered through Green River Capital, a leading provider of REO asset management and single-family rental services; Red Bell Real Estate, a company using data and analytics combined with innovative technology to deliver real estate brokerage services and a broad array of leading-edge residential real estate valuation products; Five Bridges Advisors, a developer of proprietary software, data analytics and predictive models leveraging artificial intelligence, machine learning and traditional econometric techniques; Radian Title Insurance, an innovative next generation national title underwriter, and Radian Settlement Services, a national centralized title agency and settlement services provider. These companies remain important contributors to Radian’s growing Real Estate Services business.
Approximately 550 employees supporting Clayton Services will join the Covius team. Thornberry added, “We are very proud of our Clayton Services team for their hard work and dedication on behalf of Radian and wish them continued success as part of the Covius organization.”
About Radian
Radian is ensuring the American dream of homeownership responsibly and sustainably through products and services that include industry-leading mortgage insurance and a comprehensive suite of mortgage, real estate and title services. We are informed by data and analytics, powered by technology, and driven to deliver new and better ways of doing business across the mortgage and real estate value chain. Learn more about Radian’s financial strength and flexibility at www.radian.biz and visit www.radian.com to see how Radian is shaping the future of mortgage and real estate services.
