(Bloomberg) -- Radian Group Inc. will broaden somemortgage-insurance policies to provide relief when borrowers losetheir jobs, in a bid to stoke demand among homebuyers pressured bygovernment fees and tight access to credit.

The insurer will give the coverage to buyers putting down lessthan 5% of the price of their homes, according to Teresa Bazemore,president of Philadelphia-based Radian’s mortgage-insuranceunit.

Mortgage insurers cover losses when homeowners default andforeclosures fail to recoup costs. While Radian has benefited froma decline in claims costs tied to defaults, revenue hasn’t improvedas quickly. Would-be homebuyers have been thwarted by banks thatare reluctant to extend credit, and the U.S regulator for FannieMae and Freddie Mac last week left intact some fees tied to loansthey guarantee.

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