Executive Officer Stock Ownership Guidelines

The Board views equity ownership as a means of aligning executives’ and stockholders’ interests.  Accordingly, Radian’s executive officers are required (by the later of February 8, 2010 or five years after their respective effective dates of employment) to achieve and maintain ownership of Radian common stock with a market value equal to the following levels:

• CEO – 10 times salary
• CFO and President of Principal Operating Subsidiaries – 4 times salary
• General Counsel and Head of Human Resources - 2 times salary

Given the significant decrease in the market value of our common stock during 2007, management and our board of directors are in the process of reevaluating our current stock ownership requirements.