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10/13/2008

Radian Guaranty Launches New Program To Keep More People in Their Homes

New Servicer Advocacy Group Created to Reduce Foreclosures Offers Range of Services Designed to Mitigate Losses and Aid Borrowers
PHILADELPHIA, Oct 13, 2008 (BUSINESS WIRE) -- Radian Guaranty, the mortgage insurance subsidiary of Radian Group Inc. (NYSE:RDN), announced today that it has established the Servicer Advocacy Group, a new program aimed at keeping more homeowners in their homes.

Under the new program, Radian will lend its considerable expertise in loan workouts and loss mitigation to mortgage servicers, helping them craft creative and flexible solutions that will help distressed homeowners remain in their homes.

"The number one goal of this program is to help keep more homeowners in their homes, especially important during this turbulent time," said Cam Melchiorre, Senior Vice President, Loss Management for Radian Guaranty. "We will work closely with mortgage servicers to make sure they have access to a wide range of products and services that can help homeowners who are struggling.

"As a mortgage insurer, we have a vested interest in keeping homeowners in their homes. We also have sophisticated resources to assist with workouts. By applying a structured regional approach to the unique real estate needs of affected communities, we look forward to a win-win-win solution that benefits homeowners as well as servicers and Radian.

"All three of us -- the mortgage servicing community, Radian Guaranty and, most importantly, our homeowner customers -- want nothing more than to help struggling homeowners remain in their homes."

The Servicer Advocacy Group will be organized into three regions -- Western, Eastern and Central. Each region will be led by a Vice President of Servicer Advocacy. The Western region will be run by Liz Johnson. The East region will be managed by Chris Wagner, and Connie Childs will oversee the Central region. All three of the Vice Presidents will report to Cam Melchiorre.

The regions will be supported by regional Servicer Advocacy Representatives. These Representatives will work directly with servicers to implement a custom-designed "Servicer Solution Set" -- a set of loss mitigation tools designed to meet each servicer's specific needs.

The "Servicer Solution Set" includes:

-- Radian FastAdvance: A default solution that provides quick, partial claims advances. Servicers can use these advances to assist distressed borrowers by modifying the terms of a loan or structuring a customized repayment plan, for example.

-- Consumer Credit Counseling Service of Delaware Valley (CCCS-DV): A partnership with one of the most highly regarded independent, non-profit counseling services in the nation. Struggling borrowers have access to comprehensive consumer credit education, counseling, asset building and debt reduction programs. Radian covers all counseling costs.

-- On-Site Loss Mitigation Representatives: Radian places loss mitigation representatives directly in a servicer's office to personally assist in reviewing borrower financial packages and determine appropriate workout solutions.

-- Loss Management Sponsored Servicer Training: Radian provides a servicer's employees with training on skills such as Loss Mitigation, Negotiations and Workout Programs, helping servicers become more familiar with tools that can help homeowners keep their homes.

In addition, the Servicer Advocacy Group will work directly with Radian's corporately located loss mitigation specialists to source, propose and close workout transactions, with an emphasis on retention workouts.

"Radian's Servicer Advocacy Group is an important and bold program that we believe will preserve home ownership for many homeowners," said Melchiorre. "These trying times require creative solutions, and we look forward to partnering with our servicer clients on behalf of homeowners across the nation."

About Radian

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 www.radian.com.

SOURCE: Radian Group Inc.

Radian Group Inc.
Rick Gillespie, 215-231-1061
rick.gillespie@radian.com
or
Sal Vittolino, 610-359-8773
sal@buchananpr.com