NEW YORK (TheStreet) -- Shares of Radian Group are rallying, up 4.87% to $17.99 on heavy volume in late morning trading Monday, following the publication of final mortgage insurer guidelines from government-owned, mortgage-investment companies Fannie Mae and Freddie Mac . The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, announced softened mortgage insurers' standards late Friday, Bloomberg reports. It eased capital requirements on some loans from 2005 through 2008, in cases where borrowers steadily met their commitments, Bloomberg added. The latest standards are meant to prevent a repeat of what happened after the financial crisis, when a collapse in home prices led many in the industry to go out of business, according to Bloomberg. The rules are set to take effect at the end of the year. About 3.45 million shares of Radian have exchanged hands as of 11:08 a.m. ET today, compared to its average trading volume of about 2.2 million shares a day. Philadelphia-based Radian Group is a credit enhancement company with a primary strategic focus on domestic residential mortgage insurance on first-lien mortgage loans. The company operates under two business segments including mortgage insurance and financial guaranty. Separately, TheStreet Ratings team rates RADIAN GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate RADIAN GROUP INC (RDN) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 8.6%. Growth in the company's revenue appears to have helped boost the earnings per share. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, RADIAN GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500. Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 1077.7% when compared to the same quarter one year prior, rising from $36.37 million to $428.34 million. Net operating cash flow has significantly increased by 189.51% to $87.10 million when compared to the same quarter last year. In addition, RADIAN GROUP INC has also vastly surpassed the industry average cash flow growth rate of -193.31%. You can view the full analysis from the report here: RDN Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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