News

04/28/2008

Radian Presents Plan to GSEs Ahead of Schedule

PHILADELPHIA, April 28 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE: RDN) ("Radian") today announced that it presented a comprehensive business and financial plan to the government sponsored enterprises (GSEs) that is intended to restore profitability and a AA rating to its mortgage insurance business, Radian Guaranty Inc.

Radian presented this plan to officials from both GSEs on April 10, 2008, just two days after Standard & Poor's Rating Services ("S&P") lowered its rating on Radian Guaranty from AA- to A, triggering the requirement to submit a remediation plan to the GSEs as a result of S&P's action.

"We have been maintaining a frequent and productive dialog with the GSEs about the market downturn and its impact on our business since last year," commented Dave Applegate, president of Radian Guaranty. "At our respective April 10 meetings with both GSEs we presented detailed plans on the transformation of Radian Guaranty."

Although neither GSE has publicly commented on Radian's proposed plan, both GSEs have recently indicated that the information presented on April 10th meets their requirement for the submission of information as a result of a downgrade. They will notify Radian when and if any additional information is required. Radian anticipates that the process to return to AA status will be a long-term endeavor and will include regular meetings and progress reports with both GSEs.

Despite the clearly unprecedented market environment, Radian remains committed to working closely with their lender partners and the GSEs to provide solutions that will improve the future of the housing industry.

Radian Group Inc. is a global credit risk management company headquartered in Philadelphia with significant operations in New York and London. Radian develops innovative financial solutions by applying its core mortgage credit risk expertise and structured finance capabilities to the credit enhancement needs of the capital markets worldwide, primarily through credit insurance products. The company also provides credit enhancement for public finance and other corporate and consumer assets on both a direct and reinsurance basis and holds strategic interests in credit-based consumer asset businesses. Additional information may be found at http://www.radian.com.

All statements in this news release that address events, developments or results that we expect or anticipate may occur in the future are "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward looking information. The information included in this news release, as well as our prospects as a whole, are subject to risks and uncertainties, including the following: Our ability to retain our "Top Tier" eligibility requirement from both Freddie Mac and Fannie Mae. Freddie Mac's and Fannie Mae's eligibility requirements for Top Tier mortgage insurers currently require such insurers to maintain an insurer financial strength rating of AA- or Aa3 from at least two of the three ratings agencies that customarily rate them; however, both Freddie Mac and Fannie Mae have indicated that loss of Top Tier mortgage insurer eligibility due to such a downgrade will no longer be automatic and will be subject to review if and when it occurs. Given our recent downgrade by S&P, we cannot be certain that we will continue to retain Top Tier eligibility from either Freddie Mac or Fannie Mae. If we were to lose Top Tier eligibility, Freddie Mac and/or Fannie Mae could restrict us from conducting certain types of business with them or take actions that may include not purchasing loans insured by us, which would have a material adverse impact on the franchise value of our mortgage insurance business and our future prospects and could negatively impact our results of operations and financial condition.

For more information regarding certain additional risks that we face, you should refer to the Risk Factors detailed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2007. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date of this news release. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements made in this news release to reflect new information or future events or for any other reason.

Contact:
For Investors: Terri Williams-Perry - phone: 215 231.1486
Email: terri.williams-perry@radian.com

For the Media: Rick Gillespie - phone: 215 231.1061
Email: rick.gillespie@radian.com

Steve Frankel / Tim Lynch
Joele Frank, Wilkinson Brimmer Katcher
212 355.4449

SOURCE Radian Group Inc.