Judge upholds order against mortgage insurer

A California administrative law judge Monday upheld a Department of Insurance cease-and-desist order against Radian Guaranty Inc. that prohibits the Philadelphia-based mortgage insurer from selling its Radian Lien Protection policies.

The department issued the order in June because Radian is licensed to sell only mortgage guaranty insurance in California. The company had appealed the order, contending that its coverage for undisclosed liens is a “consumer-friendly” alternative to traditional title insurance.

But Radian isn’t licensed to sell title insurance in California or any other state, and the American Land Title Assn. has been battling to keep the company’s lien guarantee product off the market.

By Tuesday, Radian had petitioned California’s newly elected insurance commissioner to reconsider the ban. John Garamendi, who took office a day earlier, has 100 days to decide whether to accept, reject or modify Judge Leonard L. Scott’s decision.