Radian’s auditor declines reappointment

Radian Group Inc., a Philadelphia mortgage insurer and financial services company, said in a regulatory filing that its independent auditor, Deloitte & Touche L.L.P, declined to be reappointed.

Deloitte was scheduled to end its work for Radian at the end of the third quarter because of Radian's planned merger with MGIC Investment Corp. That merger was cancelled on Sept. 5 amid mortgage and capital markets turmoil.

No reason was given for the departure of Deloitte. However, Radian, backed by a letter from Deloitte to the SEC, said there were no disagreements on prior financial statements.

Steve Stelmach, an analyst with Friedman, Billings, Ramsey & Co., said a new auditor might have more conservative views on the balance sheet, possibly forcing more write-downs. Radian's shares were down 7.35 percent, or $1.91, to $24.08 at 12:17 p.m.