Radian Rewards Timely Mortgage Payments

Some homeowners who have recently modified their home loans through the Home Affordable Modification Program (HAMP) may begin receiving cash rewards for making timely mortgage payments.

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""Radian Guaranty, Inc."":http://www.radian.biz/page?name=HomePage, a private mortgage insurer and subsidiary of the Radian Group, announced it will reward current insured borrowers through the ""Responsible Homeowner Reward"":http://www.rhreward.com/ program, which is administered by ""Loan Value Group LLC"":http://www.loanvaluegroup.com/, a company founded in 2008 to provide borrower incentives to protect investors and servicers.

The program ""is designed to target and reduce negative equity for nearly 12 million underwater borrowers,"" stated Frank Pallotta, one of the managing partners at Loan Value Group.

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According to Pallotta, the program has been a success since its initiation in 2010 and has lowered default rates by 50 percent for participating borrowers.

Radian will select eligible homeowners for enrollment in the Responsible Homeowner Reward program, and the homeowner incurs no financial obligation to participate.

Eligible homeowners must have recently received a HAMP modification and must remain current on their new loan to acquire cash rewards.

Rewards are deposited into an account in the homeowner's name, and he or she will continue to receive cash rewards up to a maximum amount.

The homeowner then receives the entire cash reward when his or her mortgage loan is either refinanced or paid in full.

""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, chief risk officer at Radian.

""Radian is committed to sustainable homeownership, and we are pleased to offer the RH Reward program to our insured homeowners,"" Theobald added.