10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 10-K/A

(Amendment No. 1)

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2011

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                    

Commission file number 1-11356

_______________________________

RADIAN GROUP INC.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware	23-2691170
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1601 Market Street, Philadelphia, PA	19103
(Address of principal executive offices)	(Zip Code)

(215) 231-1000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $.001 par value per share	New York Stock Exchange
Preferred Stock Purchase Rights	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

_______________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    YES  o    NO  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    YES  o    NO  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES   x    NO  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  x    NO  o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer  x		Accelerated filer	o
Non-accelerated filer    o	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

As of June 30, 2011, the aggregate market value of the registrant's common stock held by non-affiliates of the registrant was $553,787,209 based on the closing sale price as reported on the New York Stock Exchange. Excluded from this amount is the value of all shares beneficially owned by executive officers and directors of the registrant. These exclusions should not be deemed to constitute a representation or acknowledgment that any such individual is, in fact, an affiliate of the registrant or that there are not other persons or entities who may be deemed to be affiliates of the registrant.

The number of shares of common stock, $.001 par value per share, of the registrant outstanding on February 24, 2012 was 133,290,984 shares.

_______________________________ 

DOCUMENTS INCORPORATED BY REFERENCE

	Form 10-K Reference Document
Definitive Proxy Statement for the Registrant's 2012 Annual Meeting of Stockholders	Part III (Items 10 through 14)

EXPLANATORY NOTE

This Amendment No. 1 on Form 10-K/A amends the Annual Report on Form 10-K of Radian Group Inc. (the “Registrant”) for the year ended December 31, 2011 (the “Form 10-K”), which was filed with the Securities and Exchange Commission on February 29, 2012. The Registrant is filing this Amendment No. 1 solely to furnish a corrected Exhibit 101 to the Form 10-K, in accordance with Rule 405 of Regulation S-T, that provides certain items from our Form 10-K formatted in Extensible Business Reporting Language ("XBRL").

Except as described above, this Amendment No. 1 does not amend any other information set forth in the Form 10-K. This Amendment No. 1 speaks as of the original filing date of the Form 10-K and does not reflect any events that may have occurred subsequent to such date.

Pursuant to Rule 406T of Regulation S-T, these interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under these sections.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on March 2, 2012.

Radian Group Inc.
By:	/s/ C. Robert Quint
	C. Robert Quint, Executive Vice President and Chief Financial Officer

INDEX TO EXHIBITS

Exhibit Number	Exhibit
3.1	Third Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 11, 2004 and filed on May 12, 2004)
3.2	Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 22, 2008 and filed on May 29, 2008)
3.3	Second Amendment to the Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 12, 2010 and filed on May 18, 2010)
3.4	Certificate of Change of Registered Agent and Registered Office of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 10, 2010 and filed on November 16, 2010)
3.5	Certificate of Designation of Series A Junior Participating Preferred Stock (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated October 9, 2009 and filed on October 13, 2009)
3.6	Amended and Restated By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 9. 2011 and filed on November 15, 2011)
4.1	Specimen certificate for Common Stock (incorporated by reference to Exhibit 4.1 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 1999)
4.2	Amended and Restated Tax Benefit Preservation Plan, dated as of February 12, 2010, between the Registrant and The Bank of New York Mellon (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated February 12, 2010 and filed on February 17, 2010)
4.3	First Amendment to the Amended and Restated Tax Benefit Preservation Plan, dated as of May 3, 2010, between the Registrant and The Bank of New York Mellon (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated May 3, 2010 and filed on May 4, 2010)
4.4	Indenture dated May 29, 2001, between the Registrant and First Union National Bank, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement on Form S-4 (file no. 333-52762) filed on July 19, 2001)
4.5	Form of 7.75% Debentures Due 2011 (included within Exhibit 4.4)
4.6	Indenture dated as of February 14, 2003, between the Registrant and Wachovia Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended March 31, 2003)
4.7	Form of 5.625% Senior Notes Due 2013 (included within Exhibit 4.6)
4.8	Registration Rights Agreement dated February 14, 2003, among the Registrant, Banc of America Securities LLC, Lehman Brothers Inc., Wachovia Securities, Inc., Bear Stearns & Co. Inc. and Deutsche Bank Securities Inc. (incorporated by reference to Exhibit 4.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended March 31, 2003)
4.9	Senior Indenture, dated as of June 7, 2005, between the Registrant and Wells Fargo Bank, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated June 2, 2005 and filed on June 7, 2005)

Exhibit Number	Exhibit
4.10	Officers' Certificate, dated as of June 7, 2005, including the terms of the Registrant's 5.375% Senior Notes due 2015, as Attachment A, and including the form of the Notes as Exhibit A-1 to Attachment A (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated June 2, 2005 and filed on June 7, 2005)
4.11	Senior Indenture, dated as of November 15, 2010, between the Registrant and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Registrant's Current Report on Form 8-K dated November 10, 2010 and filed on November 16, 2010)
4.12	First Supplemental Indenture, dated as of November 15, 2010, between the Registrant and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 10, 2010 and filed on November 16, 2010)
4.13	Form of 3.00% Convertible Senior Notes Due 2017 (included within Exhibit 4.12)
+10.1	Employment Agreement between the Registrant and Sanford A. Ibrahim, dated as of April 5, 2011(incorporated by reference to Exhibit 99.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated April 5, 2011 and filed on April 7, 2011)
+10.2	Stock Appreciation Right Agreement under 2008 Equity Compensation Plan, dated as of May 13, 2009, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.25 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)
+10.3	Restricted Stock Award Agreement under 2008 Equity Compensation Plan, dated as of May 13, 2009, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.26 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)
+10.4	Restricted Stock Award Agreement under 2008 Equity Compensation Plan, dated as of May 16, 2009, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.27 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)
+10.5	Amendments to Restricted Stock and Stock Option Grants between the Registrant and Sanford A. Ibrahim, dated as of February 10, 2010 (incorporated by reference to Exhibit 10.11 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)
+10.6	2010 Performance-Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated May 12, 2010 between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010)
+10.7	2010 Stock Option Agreement under the 2008 Equity Compensation Plan, dated May 12, 2010 between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010)
+10.8	Change of Control Agreement between the Registrant and Teresa A. Bryce, dated November 14, 2006 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated December 12, 2005 and filed on December 16, 2005)
+10.9	Amendment to Change of Control Agreement-Section 409A between the Registrant and Teresa A. Bryce, dated December 8, 2008 (incorporated by reference to Exhibit 10.4 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)
+10.10	Form of Severance Agreement (including for Richard I. Altman, Robert H. Griffith, Edward J. Hoffman, C. Robert Quint and H. Scott Theobald) (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated December 30, 2010 and filed on January 6, 2011)
+10.11	Employment Agreement between the Registrant and Robert H. Griffith, dated as of February 11, 2010 (incorporated by reference to Exhibit 10.12 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)

Exhibit Number	Exhibit
+10.12	Radian Group Inc. Amended and Restated Benefit Restoration Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 6, 2007 and filed on November 13, 2007)
+10.13	Amendment No. 1 to the Radian Group Inc. Amended and Restated Benefit Restoration Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2008)
+10.14	Radian Group Inc. Savings Incentive Plan (Amended and Restated Effective January 1, 2008) (incorporated by reference to Exhibit 10.17 to the Registrant's Annual Report on Form 10-K (file no. 1-11356)for the year ended December 31, 2008)
+10.15	Amendment No. 1 to the Radian Group Inc. Savings Incentive Plan, effective January 1, 2010 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2009)
+10.16	Amendment No. 2 to the Radian Group Inc. Savings Incentive Plan, dated November 30, 2010 (incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on form 10-K (file no. 1-11356) for the year ended December 31, 2010)
+10.17	Radian Group Inc. 1995 Equity Compensation Plan (Amended and Restated May 9, 2006) (incorporated by reference to Appendix A to the Registrant's Definitive Proxy Statement for the 2006 Annual Meeting of Stockholders (file no. 1-11356), as filed with the Securities and Exchange Commission on April 18, 2006).
+10.18	Amendment to Radian Group Inc. 1995 Equity Compensation Plan (Amended and Restated May 9, 2006) dated February 5, 2007 (incorporated by reference to Exhibit 10.17 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2006)
+10.19	Amendment No. 2 to Radian Group Inc. 1995 Equity Compensation Plan, dated November 6, 2007 (incorporated by reference to Exhibit 10.23 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2007)
+10.20	Form of Stock Option Grant Letter under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2004)
+10.21	Form of Restricted Stock Award Agreement for awards granted before February 5, 2007 under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2005)
+10.22	Form of Restricted Stock Award Agreement for awards granted on or after February 5, 2007 under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10.20 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2006)
+10.23	Form of Phantom Stock Agreement for Non-Employee Directors under 1995 Equity Compensation Plan (incorporated by reference to Exhibit 10.6 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated February 8, 2005 and filed on February 14, 2005)
+10.24	Radian Group Inc. Amended and Restated 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.1 to the Registrant's Registration Statement on Form S-8 (file no. 333-174428) filed on May 23, 2011)
+10.25	Form of Stock Option Grant Letter under 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.6 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2008)
+10.26	Form of Restricted Stock Award Agreement under 2008 Equity (file no. 1-11356) Compensation Plan (incorporated by reference to Exhibit 10.7 to the Registrant's Quarterly Report on Form 10-Q for the period ended September 30, 2008)

Exhibit Number	Exhibit
+10.27	Form of Phantom Stock Agreement for Non-Employee Directors under 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.8 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2008)
+10.28	Amendment to Form of 2008 Phantom Stock Agreement for Non-Employee Directors under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009)
+10.29	Form of 2009 Restricted Stock Award Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009)
+10.30	Form of 2009 Stock Appreciation Right Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009)
+10.31	Form of Restricted Stock Unit Award Agreement for Employees under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.34 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2010)
+10.32	Form of 2009 Restricted Stock Unit Award Agreement for Non-Employee Directors under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009)
+10.33	Amended and Restated Radian Group Inc. 2008 Executive Long-Term Incentive Cash Plan (incorporated by reference to Exhibit 10.3 to the Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended March 31, 2011)
+10.34	Form of 2008 Executive Long-Term Incentive Cash Plan Award (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended September 30, 2008)
+10.35	Form of 2009 Executive Long-Term Incentive Cash Plan Award (incorporated by reference to Exhibit 10.8 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2009)
+10.36	Form of 2010 Performance-Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010)
+10.37	Form of 2010 Stock Option Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.4 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010)
+10.38	Form of 2010 Executive Long-Term Incentive Cash Plan Award (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2010)
+10.39	Radian Group Inc. Amended and Restated Performance Share Plan (incorporated by reference to Exhibit 10.2 to the Registrant's Amended Current Report on Form 8-K (file no 1-11356) dated February 8, 2005 and filed on February 14, 2005)
+10.40	Amended and Restated Radian Group Inc. Voluntary Deferred Compensation Plan for Directors (incorporated by reference to Exhibit 10.40 to the Registrant's Annual Report on Form 10-K (file no. 1-11356)for the year ended December 31, 2009)
+10.41	Amended and Restated Radian Voluntary Deferred Compensation Plan for Officers (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 12, 2009 and filed on November 18, 2009)
+10.42	Radian Group Inc. 2008 Employee Stock Purchase Plan (incorporated by reference to Appendix B to the Registrant's Schedule 14A filed on April 13, 2009)

Exhibit Number	Exhibit
+10.43	Radian Group Inc. STI/MTI Incentive Plan for Executive Employees (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 12, 2009 and filed on November 18, 2009)
+10.44	Enhance Financial Services Group Inc. 1997 Long-Term Incentive Plan for Key Employees (As Amended Through June 3, 1999) (incorporated by reference to Exhibit 10.2.2 to the Quarterly Report on Form 10-Q (file no. 1-10967) for the period ended June 30, 1999, of Enhance Financial Services Group Inc.)
+10.45	Enhance Reinsurance Company Supplemental Pension Plan (incorporated by reference to Exhibit 10.4 to the Annual Report on Form 10-K (file 1-10967) for the year ended December 31, 1999, of Enhance Financial Services Group Inc.)
+10.46	Amendment to Enhance Reinsurance Company Supplemental Pension Plan, effective January 1, 2008 (incorporated by reference to Exhibit 10.40 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2008)
+10.47	Certain Compensation Arrangements with Directors (Effective May, 2008) (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2008)
10.48	Form of Radian Guaranty Inc. Master Policy, effective June 1, 1995 (incorporated by reference to Exhibit 10.21 to the Registrant's Registration Statement on Form S-4 (file no. 333-65440) filed on July 19, 2001)
10.49	Net Worth and Liquidity Maintenance Agreement, dated as of October 10, 2000, between Radian Guaranty Inc. and Radian Insurance Inc. (incorporated by reference to Exhibit 10.26 to the Registrant's Annual Report on Form 10-K (file 1-11356) for the year ended December 31, 2002)
10.50	Form of Expense Allocation and Services Agreement between the Registrant and each of Radian Guaranty Inc., Radian Insurance Inc, Radian Asset Assurance Inc. and Amerin Guaranty Corporation (incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2005)
10.51	Form Amendment to Expense Allocation and Services Agreement between the Registrant and each of Radian Guaranty Inc. Radian Insurance Inc., Radian Asset Assurance Inc. and Amerin Guaranty Corporation (incorporated by reference to Exhibit 10.3 to the Registrant's Quarterly Report on form 10-Q (file no. 1-11356) for the period ended March 31, 2009)
10.52	Radian Group Inc. Allocation of Consolidated Tax Liability Agreement between the Registrant and each of its subsidiaries, dated January 1, 2002, including Addendums 1 through 6 dated between January 1, 2002 and July 10, 2008 (incorporated by reference to Exhibit 10.49 to the Registrant's Annual Report on Form 10-K (file no. 1-11356) for the year ended December 31, 2008)
10.53	Capped Call Confirmation (Reference No. 99AMQGZY8) dated as of November 8, 2010 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 8, 2010 and filed on November 10, 2010)
10.54	Capped Call Confirmation (Reference No. 99AMQM627) dated as of November 10, 2010 (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated November 8, 2010 and filed on November 10, 2010)
10.55	Securities Purchase Agreement, dated as of May 3, 2010, by and between Radian Guaranty Inc. and Sherman Financial Group LLC (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated April 30, 2010 and filed on May 4, 2010)
+10.56	Amendment to Incentive Awards under 2008 Executive Long-Term Incentive Cash Plan, dated April 5, 2011 (incorporated by reference to Exhibit 99.2 to the Registrant's Current Report on Form 8-K (file no. 1-11356) dated April 5, 2011 and filed on April 7, 2011)
+10.57	Form of 2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.5 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011)

Exhibit Number	Exhibit
+10.58	Form of 2011 Stock Option Agreement under the 2008 Equity Compensation Plan (incorporated by reference to Exhibit 10.6 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011)
+10.59	2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.7 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011)
+10.60	2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and C. Robert Quint (incorporated by reference to Exhibit 10.8 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011)
+10.61	2011 Stock Option Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and Sanford A. Ibrahim (incorporated by reference to Exhibit 10.9 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011)
+10.62	2011 Stock Option Agreement under the 2008 Equity Compensation Plan, dated June 9, 2011, between the Registrant and C. Robert Quint (incorporated by reference to Exhibit 10.10 to the Registrant's Quarterly Report on Form 10-Q (file no. 1-11356) for the period ended June 30, 2011)
+10.63	Severance Agreement, dated December 23, 2011, between Teresa Bryce Bazemore and the Registrant (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) filed December 29, 2011)
10.64	Commutation, Reassumption and Release Agreement, effective as of January 1, 2012 (signed January 24, 2012), between Assured Guaranty Municipal Corp. (formerly Financial Security Assurance Inc.), Assured Guaranty (Europe) Ltd. (formerly Financial Security Assurance (U.K.) Limited), and Radian Asset Assurance Inc. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (file no. 1-11356) filed January 30, 2012)
*10.65	Letter Agreement dated February 27, 2012, by and between Radian Guaranty Inc., Radian Mortgage Assurance, Inc., Radian Group Inc. and Federal National Mortgage Association
*10.66	Letter dated February 28, 2012 from Freddie Mac to Radian Guaranty Inc. and Radian Mortgage Assurance Inc.
*12	Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends
*21	Subsidiaries of the Registrant
*23.1	Consent of PricewaterhouseCoopers LLP
*31	Rule 13a-14(a) Certifications
*32	Section 1350 Certifications
**101	The following financial information from Radian Group Inc's Annual Report on Form 10-K for the year ended December 31, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2011 and 2010, (ii) Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009, (iii) Consolidated Statements of Changes in Common Stockholders' Equity for the years ended December 31, 2011, 2010 and 2009, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009, and (v) Notes to Consolidated Financial Statements

 __________________

* Previously filed with the Form 10-K of the Registrant filed on February 29, 2012.

** Furnished with this Form 10-K/A.

+ Management contract, compensatory plan or arrangement.

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Note 9 - Reinsurance (Tables)

12 Months Ended

Dec. 31, 2011

Reinsurance [Abstract]

Reinsurance, Premiums Written And Earned [Table Text Block]

The effect of reinsurance on net premiums written and earned is as follows:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Net premiums written-insurance:
Direct	$	755,758		$	788,321		$	790,052
Assumed	(11,162		)	(6,585		)	(207,074		)	(1)
Ceded	(37,349		)	(89,855		)	(139,130		)
Net premiums written-insurance	$	707,247		$	691,881		$	443,848
Net premiums earned-insurance:
Direct	$	762,428		$	891,167		$	919,778
Assumed	32,337			29,063			45,749
Ceded	(38,740		)	(94,497		)	(139,626		)
Net premiums earned-insurance	$	756,025		$	825,733		$	825,901

_____________

(1) This amount includes a $185.6 million reduction related to the commutation of $9.8 billion in net par outstanding.

Capitve And Smart Home Transactions [Table Text Block]

The following tables present information related to our captive and Smart Home transactions as of the dates indicated:

	Year Ended December 31,
(In millions)	2011		2010
Risk in force ceded under captive reinsurance arrangements	$	340.8	$	420.6
Ceded losses recoverable related to captives	90.1		151.7
Ceded losses recoverable related to Smart Home	67.9		93.2

Approximately 25.6% of our total ceded losses recoverable at December 31, 2011, were related to two captive reinsurers.

	Year Ended December 31,
(In millions)	2011		2010		2009
Ceded premiums written related to captives	$	28.6	$	80.1	$	128.3
Ceded premiums earned related to captives	28.8		83.4		129.8
Ceded premiums written related to Smart Home	8.8		9.8		10.9
Ceded premiums earned related to Smart Home	8.8		9.8		10.9
Ceded recoveries, excluding amounts received upon terminations of captive reinsurance transactions	84.5		134.7		31.3

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Note 16 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options - Range of Exercise Prices) (Details) (2008 Equity Plan [Member], USD $)	12 Months Ended
	Dec. 31, 2011 years
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number Outstanding	3,472,762
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	2.9
Options Exercisable, Number Exercisable	2,410,123
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Closing Price of Common Stock Vesting Criteria	$ 4.48
Share-based Compensation Arrangement by Share-based Payment Award, Options Granted in Period, Percent of Increase Over Granted Price for Additional Vesting Criteria	125.00%
Number of Consecutive Trading Days For Current Year Options Granted Vesting Requirement	10
Minimum [Member] | Stock Options [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period as Defined in Change in Control Criteria	3 years
$2.48 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	$ 2.48
Range of Exercise Prices, Upper Range Limit	$ 2.48
Options Outstanding, Number Outstanding	444,800
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	3.6
Options Outstanding, Weighted Average Exercise Price	$ 2.48
Options Exercisable, Number Exercisable	222,400
Options Exercisable, Weighted Average Exercise Price	$ 2.48
$3.58 - $7.06 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	$ 3.58
Range of Exercise Prices, Upper Range Limit	$ 7.06
Options Outstanding, Number Outstanding	620,639
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	6.4
Options Outstanding, Weighted Average Exercise Price	$ 4.37
Options Exercisable, Number Exercisable	0
Options Exercisable, Weighted Average Exercise Price	$ 0
$10.42 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	$ 10.42
Range of Exercise Prices, Upper Range Limit	$ 10.42
Options Outstanding, Number Outstanding	219,600
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	5.4
Options Outstanding, Weighted Average Exercise Price	$ 10.42
Options Exercisable, Number Exercisable	0
Options Exercisable, Weighted Average Exercise Price	$ 0
$20.34 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	$ 20.34
Range of Exercise Prices, Upper Range Limit	$ 20.34
Options Outstanding, Number Outstanding	980,000
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	2.7
Options Outstanding, Weighted Average Exercise Price	$ 20.34
Options Exercisable, Number Exercisable	980,000
Options Exercisable, Weighted Average Exercise Price	$ 20.34
$35.79 - $46.39 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	$ 35.79
Range of Exercise Prices, Upper Range Limit	$ 46.39
Options Outstanding, Number Outstanding	558,701
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	0.6
Options Outstanding, Weighted Average Exercise Price	$ 41.12
Options Exercisable, Number Exercisable	558,701
Options Exercisable, Weighted Average Exercise Price	$ 41.12
$48.39 - $56.03 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower Range Limit	$ 48.39
Range of Exercise Prices, Upper Range Limit	$ 56.03
Options Outstanding, Number Outstanding	649,022
Options Outstanding, Weighted Average Remaining Contractual Life (Years)	0.7
Options Outstanding, Weighted Average Exercise Price	$ 53.08
Options Exercisable, Number Exercisable	649,022
Options Exercisable, Weighted Average Exercise Price	$ 53.08

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Note 3 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Segment Reporting Information [Line Items]
Net premiums written-insurance	$ 707,247	$ 691,881	$ 443,848
Net premiums earned-insurance	756,025	825,733	825,901
Net investment income	163,520	178,760	214,190
Net gains on investments	202,177	139,944	257,141
Net impairment losses recognized in earnings	(1,202)	(90)	(9,269)
Change in fair value of derivative instruments	628,395	(558,712)	99,958
Net gains (losses) on other financial instruments	193,329	(211,681)	(88,569)
Gain on sale of affiliate	0	34,815	0
Other income	5,599	8,696	14,026
Total revenues	1,947,843	417,465	1,313,378
Provision for losses	1,296,521	1,739,244	1,337,574
Change in reserve for premium deficiency	(7,092)	(14,621)	(61,504)
Policy acquisition costs	52,763	53,469	63,034
Other operating expenses	175,810	191,942	203,770
Interest expense	61,394	41,777	46,010
Total expenses	1,579,396	2,011,811	1,588,884
Equity in net income of affiliates	65	14,668	33,226
Pretax income (loss)	368,512	(1,579,678)	(242,280)
Income tax provision (benefit)	66,362	226,189	(94,401)
Net income (loss)	302,150	(1,805,867)	(147,879)
Cash and investments	5,846,168	6,680,630	6,214,376
Deferred policy acquisition costs	139,906	148,326	160,281
Total assets	6,656,765	7,620,887	8,057,158
Unearned premiums	637,372	686,364	823,621
Reserve for losses and LAE	3,310,902	3,596,735	3,578,982
VIE debt	228,240	520,114	296,080
Derivative liabilities	126,006	723,579	238,697
Mortgage Insurance Segment
Segment Reporting Information [Line Items]
Net premiums written-insurance	717,264	699,909	630,076
Net premiums earned-insurance	680,895	739,631	724,423
Net investment income	93,678	104,030	129,871
Net gains on investments	126,205	84,004	161,637
Net impairment losses recognized in earnings	(1,202)	(90)	(9,246)
Change in fair value of derivative instruments	(632)	32,381	(14,428)
Net gains (losses) on other financial instruments	3,864	(48,137)	(96,022)
Gain on sale of affiliate		0
Other income	5,369	7,208	12,258
Total revenues	908,177	919,027	908,493
Provision for losses	1,293,857	1,730,801	1,300,827
Change in reserve for premium deficiency	(7,092)	(14,621)	(61,504)
Policy acquisition costs	36,051	36,102	27,563
Other operating expenses	132,225	141,172	140,487
Interest expense	13,894	11,668	15,372
Total expenses	1,468,935	1,905,122	1,422,745
Equity in net income of affiliates	0	0	0
Pretax income (loss)	(560,758)	(986,095)	(514,252)
Income tax provision (benefit)	83,157	157,082	(176,456)
Net income (loss)	(643,915)	(1,143,177)	(337,796)
Cash and investments	3,210,279	4,037,578	3,775,682
Deferred policy acquisition costs	52,094	41,939	35,854
Total assets	3,470,103	4,801,953	4,949,815
Unearned premiums	233,446	197,260	240,346
Reserve for losses and LAE	3,247,900	3,524,971	3,450,538
VIE debt	9,450	141,006	287,995
Derivative liabilities	0	0	0
Primary New Insurance Written Major Customer for Segment Reporting Percentage	10.10%	15.50%	16.10%
Entity Wide Revenue, Major Customer, Number of Customers	2	2
Mortgage Insurance Segment | Geographic Concentration Risk [Member] | State Of California [Member]
Segment Reporting Information [Line Items]
Direct Primary New Insurance Written by Geographic Area Percent	15.30%	12.80%	16.90%
Mortgage Insurance Segment | Primary Risk In Force [Member] | Geographic Concentration Risk [Member] | State Of California [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	11.80%	11.40%
Mortgage Insurance Segment | Pool Risk in Force [Member] | Geographic Concentration Risk [Member] | State Of California [Member]
Segment Reporting Information [Line Items]
Concentration Risk, Percentage	10.50%	10.90%
Financial Guaranty Segment
Segment Reporting Information [Line Items]
Net premiums written-insurance	(10,017)	(8,028)	(186,228)
Net premiums earned-insurance	75,130	86,102	101,478
Net investment income	69,842	74,730	84,315
Net gains on investments	75,972	55,940	95,504
Net impairment losses recognized in earnings	0	0	(23)
Change in fair value of derivative instruments	629,027	(591,093)	114,386
Net gains (losses) on other financial instruments	189,465	(163,544)	7,453
Gain on sale of affiliate		0
Other income	230	364	1,394
Total revenues	1,039,666	(537,501)	404,507
Provision for losses	2,664	8,443	36,747
Change in reserve for premium deficiency	0	0	0
Policy acquisition costs	16,712	17,367	35,471
Other operating expenses	43,585	50,520	67,223
Interest expense	47,500	30,109	30,638
Total expenses	110,461	106,439	170,079
Equity in net income of affiliates	65	78	0
Pretax income (loss)	929,270	(643,862)	234,428
Income tax provision (benefit)	(16,795)	51,509	68,641
Net income (loss)	946,065	(695,371)	165,787
Cash and investments	2,635,889	2,643,052	2,438,694
Deferred policy acquisition costs	87,812	106,387	124,427
Total assets	3,186,662	2,818,934	2,985,919
Unearned premiums	403,926	489,104	583,275
Reserve for losses and LAE	63,002	71,764	128,444
VIE debt	218,790	379,108	8,085
Derivative liabilities	126,006	723,579	238,697
Financial Services Segment
Segment Reporting Information [Line Items]
Net premiums written-insurance		0	0
Net premiums earned-insurance			0
Net investment income		0	4
Net gains on investments		0	0
Net impairment losses recognized in earnings		0	0
Change in fair value of derivative instruments		0	0
Net gains (losses) on other financial instruments			0
Gain on sale of affiliate		34,815
Other income		1,124	374
Total revenues		35,939	378
Provision for losses		0	0
Change in reserve for premium deficiency		0	0
Policy acquisition costs		0	0
Other operating expenses		250	(3,940)
Interest expense		0	0
Total expenses		250	(3,940)
Equity in net income of affiliates		14,590	33,226
Pretax income (loss)		50,279	37,544
Income tax provision (benefit)		17,598	13,414
Net income (loss)		32,681	24,130
Cash and investments		0	0
Deferred policy acquisition costs		0	0
Total assets		0	121,424
Unearned premiums		0	0
Reserve for losses and LAE		0	0
VIE debt		0	0
Derivative liabilities		$ 0	$ 0

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Note 19 - Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited) [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

	2011 Quarters
	First			Second			Third			Fourth			Year
Net premiums earned—insurance	$	203,023		$	188,934		$	179,655		$	184,413		$	756,025
Net investment income	42,240			43,823			38,763			38,694			163,520
Net gains on investments (1)	37,435			44,236			81,640			38,866			202,177
Net impairment losses recognized in earnings	—			(11		)	(20		)	(1,171		)	(1,202		)
Net change in fair value of derivative instruments (2)	243,892			188,726			126,008			69,769			628,395
Net gains on other financial instruments (3)	75,251			5,047			80,602			32,429			193,329
Provision for losses (9)	427,373			263,566			249,598			355,984			1,296,521
Change in reserve for premium deficiency (6)	(1,383		)	(3,102		)	(1,942		)	(665		)	(7,092		)
Policy acquisition and other operating expenses	60,350			60,341			56,689			51,193			228,573
Equity in net income of affiliates	65			—			—			—			65
Net income (loss) (5)	103,006			137,115			183,568			(121,539		)	302,150
Diluted net income (loss) per share (7)(8)	$	0.77		$	1.03		$	1.37		$	(0.92	)	$	2.26
Weighted average shares outstanding (7)	133,703			133,614			133,513			133,463			133,863
	2010 Quarters
	First			Second			Third			Fourth			Year
Net premiums earned—insurance	$	198,268		$	203,446		$	203,937		$	220,082		$	825,733
Net investment income	45,358			48,619			46,554			38,229			178,760
Net gains (losses) on investments (1)	57,948			57,262			94,258			(69,524		)	139,944
Net impairment losses recognized in earnings	(18		)	(38		)	(34		)	—			(90		)
Net change in fair value of derivative instruments (2)	(77,954		)	(524,606		)	229,783			(185,935		)	(558,712		)
Net (losses) gains on other financial instruments (3)	(101,564		)	(63,200		)	4,882			(51,799		)	(211,681		)
Gain on sale of affiliate (4)	—			34,815			—			—			34,815
Provision for losses	543,880			435,166			344,389			415,809			1,739,244
Change in reserve for premium deficiency (6)	(1,231		)	(7,354		)	8,628			(14,664		)	(14,621		)
Policy acquisition and other operating expenses	79,924			51,962			54,106			59,419			245,411
Equity in net income of affiliates (4)	8,098			6,570			—			—			14,668
Net (loss) income (5)	(310,355		)	(475,080		)	112,185			(1,132,617		)	(1,805,867		)
Diluted net (loss) income per share (7)(8)	$	(3.77	)	$	(4.31	)	$	0.84		$	(8.55	)	$	(15.74	)
Weighted average shares outstanding (7)	82,341			110,282			133,520			132,434			114,697

 ______________

(1) The 2011 and 2010 periods reflect realized gains and losses on investments in connection with the continued reallocation of our investment portfolio and unrealized gains and losses on our trading securities.

(2) The change in fair value of derivative instruments for 2011 and 2010 reflects the volatility in the cumulative unrealized gain attributable to the market’s perception of our non-performance risk as a result of the changes in our CDS spread during both years.

(3) The 2011 and 2010 periods reflect losses on financial guaranty VIE debt and NIMS VIE debt, offset by realized gains on investments in connection with the continued reallocation of our investment portfolio.

(4) On May 3, 2010, we sold our remaining equity interest in Sherman, which resulted in a gain on sale of affiliate. We no longer record equity in net income of affiliates as a result of the sale.

(5) The net loss for the fourth quarter of 2011 was primarily due to an increase in both the mortgage insurance and financial guaranty provision for losses. The net loss for the fourth quarter of 2010 was due primarily to the establishment of an $841.5 million valuation allowance against our DTA during the fourth quarter.

(6) The 2011 and 2010 periods reflect changes in the provision for second-lien premium deficiency, due to the transfer of premium deficiency reserves to loss reserves, terminations of second-lien transactions, as well as changes in estimates.

(7) Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share.

(8) Net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year.

(9) The provision for losses in the fourth quarter of 2011 was primarily driven by reserves established on new default notices, which increased consistent with seasonal trends. In addition, the results include the effects of an increase in our IBNR reserve estimate.

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Note 18 - Commitments and Contingencies Guarantor Obligations (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011 Guaranteed Structured Transactions [Member]	Dec. 31, 2010 Foreign Holding Company [Member]
Guarantor Obligations [Line Items]
Number of Guaranteed Structured Transactions For Radian Guaranty	2
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 166.8	$ 103.4
Percentage Investment Interest In Foreign Holding Company		45.00%

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Note 7 - Investments Realized Gain (Loss) on Sale of Available For Sale Securities (Details) (USD $)	12 Months Ended			3 Months Ended
	Dec. 31, 2011 years	Dec. 31, 2010	Dec. 31, 2009	Jun. 30, 2011 Categories of Investments, Marketable Securities, Available-for-sale Securities [Member]
Gain (Loss) on Investments [Line Items]
Numer Of States Included In The Master Settlement Agreement With Domestic Tobacco Manufacturers		46
Available-for-sale Securities, Gross Realized Gain (Loss)				$ 53,700,000
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	$ 136,217,000	$ 1,218,460,000	$ 2,463,626,000	$ 94,300,000
Number Of Classes Of Tobacco Bonds Moodys Took Rating Actions On		67
Number Of Transactions Within The Classes Of Tobacco Bonds Moodys Took Rating Actions On		19
Number Of Years Since April 2011 That Master Settlement Agreement Payments Have Been At Their Lowest Levels	5

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Note 18 - Commitments and Contingencies Employee Related Obligations (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Total Incentive Retention And Severance Agreement Expenses Expected To Be Incurred	$ 9.0
Unrecorded Incentive Retention And Severance Agreement Expenses	$ 3.4

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Note 4 - Derivative Instruments Fair Values Derivatives, Balance Sheet Location by Derivative Contract Type (Details) (USD $)	Dec. 31, 2011		Dec. 31, 2010	Dec. 31, 2009
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 17,212,000		$ 26,212,000
Derivative liabilities	126,006,000		723,579,000	238,697,000
Financial Guaranty Credit Derivatives [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	15,400,000		14,500,000
Derivative liabilities	106,500,000		704,400,000
Financial Guaranty VIE Derivative Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	19,500,000		19,200,000
Derivative liabilities, net	(19,500,000)	[1]
Net Interest Margin Securities [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	1,600,000		10,900,000
Other Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	200,000		800,000
Radian Group Consolidated [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets	17,200,000		26,200,000
Derivative liabilities	126,000,000		723,600,000
Derivative liabilities, net	$ (108,800,000)		$ (697,400,000)

[1] Represents the fair value of an interest rate swap included in the consolidation of one of our financial guaranty transactions. The notional amount of the interest rate swap does not represent additional par exposure, and therefore, is excluded from this table. See Note 5 for information on our maximum exposure to loss from our consolidated financial guaranty transactions.

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Note 9 - Reinsurance Captive and Smart Home Transactions (Details) (USD $)	12 Months Ended				12 Months Ended						72 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Government [Member]	Dec. 31, 2011 Captives [Member]	Dec. 31, 2010 Captives [Member]	Dec. 31, 2009 Captives [Member]	Dec. 31, 2011 Smart Home [Member]	Dec. 31, 2010 Smart Home [Member]	Dec. 31, 2009 Smart Home [Member]	Dec. 31, 2011 Terminated Transactions [Member]
Ceded Credit Risk [Line Items]
Contracts in Force Ceded Under Captive Reinsurance Arrangements					$ 340,800,000	$ 420,600,000
Captive Reinsurers Minimum Capitalization Percentage To Risk Assumed					10.00%
Number of Reinsurance Transactions Terminated								2
Percentage of Ceded Losses Recoverable Attributable To Two Captive Reinsurers	25.60%
Number Of Captive Reinsurers Accounting For Largest Combined Percentage Of Ceded Losses Recoverable					2
Contracts in Force Subject to Participation Through Reinsurance, Percentage								2.70%	3.20%
Contracts in Force Subject to Participation Through Reinsurance, Terminations, Value						6,000,000,000		41,000,000
Reinsurance recoverables	157,985,000	244,894,000			90,100,000	151,700,000		67,900,000	93,200,000
Ceded Premiums Written	37,349,000	89,855,000	139,130,000		28,600,000	80,100,000	128,300,000	8,800,000	9,800,000	10,900,000
Ceded Premiums Earned, Property and Casualty					28,800,000	83,400,000	129,800,000	8,800,000	9,800,000	10,900,000
Reinsurance Costs and Recoveries, Net	84,500,000	134,700,000	31,300,000
Maximum Regulatory Risk To Capital Ratio	25.0			0.25
Net Cash Received (Paid) For Commutations, Terminations And Recaptures	$ 92,599,000	$ (85,657,000)	$ 369,926,000			$ 321,000,000					$ 673,200,000

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Note 15 - Statutory Information Risk To Capital Calculation (Details) (Radian Guaranty [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Radian Guaranty [Member]
Statutory Accounting Practices [Line Items]
Risk In Force	$ 18,095.7	[1]	$ 22,177.7	[1]
Statutory policyholers' surplus	843.2		1,295.7
Contingency Reserve	0		19.6
Statutory policyholders' position	$ 843.2		$ 1,315.3
Risk To Capital Ratio	21.5		16.8

[1] Risk in force is net of risk ceded through reinsurance contracts and also excludes risk in force on defaulted loans.

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Note 16 - Share-Based and Other Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2011

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of outstanding awards and compensation expense recognized for each type of share-based award

The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the periods indicated:

	December 31,
(In thousands)	2011					2010				2009
Share-based Compensation Programs	Liability Recorded/ Equity Instruments Outstanding		Compensation Cost Recognized (1)			Liability Recorded/ Equity Instruments Outstanding		Compensation Cost Recognized (1)		Liability Recorded/ Equity Instruments Outstanding		Compensation Cost Recognized (1)
Liabilities:
RSUs—Cash Settled	$	5,229	$	480		$	4,788	$	1,774	$	3,014	$	3,014
SARs—Cash Settled	1,156		(5,229		)	6,430		3,951		2,169		1,866
Officer LTI Plan	—		32			8,397		5,618		2,778		2,322
Liabilities	$	6,385	(4,717		)	$	19,615	11,343		$	7,961	7,202
Equity:
Stock Options	3,472,762		1,558			3,227,411		2,214		3,264,262		2,619
Phantom Stock	518,441		5			518,441		3,183		518,441		1,902
RSUs—Equity Settled	505,183		1,717			216,300		1,272		—		—
Restricted Stock	324,778		120			399,575		2,036		848,823		3,210
Employee Stock Purchase Plan (“ESPP”)			348					321				227
Equity			3,748					9,026				7,958
Total all share-based plans			$	(969	)			$	20,369			$	15,160

______________ 

(1) For purposes of calculating compensation cost recognized, we consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. Under the terms of our awards, legal vesting upon retirement occurs when the grantee actually separates from service.

Schedule of additional information regarding all share-based awards

The following table reflects additional information regarding all share-based awards for the years indicated:

	Year Ended December 31,
($ in thousands except per-share amounts)	2011			2010		2009
Total compensation cost recognized	$	(969	)	$	20,369	$	15,160
Less: Costs deferred as acquisition costs	171			551		962
Stock-based compensation expense impact on net income (loss) before income taxes—increase	$	(1,140	)	$	19,818	$	14,198
Stock-based compensation expense impact on net income (loss)—increase	$	(741	)	$	12,882	$	9,229
Excess tax benefits from stock-based payment arrangements	$	4		$	—	$	—
Stock-based compensation expense impact on diluted income (loss) per share—(decrease) increase	$	(0.01	)	$	0.11	$	0.11

Schedule of information with regard to stock options

Information with regard to stock options for the periods indicated is as follows:

	Number of Shares		Weighted Average Exercise Price Per Share
Outstanding, December 31, 2010	3,227,411		$	28.63
Granted	667,586		4.05
Exercised	—		—
Forfeited	(77,347	)	6.17
Expired	(344,888	)	33.00
Outstanding, December 31, 2011	3,472,762		23.97
Exercisable, December 31, 2011	2,410,123		32.33
Available for grant, December 31, 2011	3,271,288

Schedule of fully vested share options

The table below summarizes information regarding fully vested share options as of December 31, 2011:

($ in millions, except per-share amounts)	Outstanding and Exercisable
Number of options vested	2,410,123
Fair value of options vested during the year	$	0.3
Weighted-average exercise price per share	$	32.33
Aggregate intrinsic value (excess market price over exercise price)	$	—
Weighted-average remaining contractual term of options (in years)	2.0

Schedule of outstanding and exercisable options

The following table summarizes information concerning outstanding and exercisable options at December 31, 2011:

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$2.48	444,800	3.6	$	2.48	222,400	$	2.48
$3.58 – $7.06	620,639	6.4	4.37		—	—
$10.42	219,600	5.4	10.42		—	—
$20.34	980,000	2.7	20.34		980,000	20.34
$35.79 – $46.39	558,701	0.6	41.12		558,701	41.12
$48.39 – $56.03	649,022	0.7	53.08		649,022	53.08
	3,472,762	2.9			2,410,123

Schedule of valuation assumptions of stock options granted

We use the Black-Scholes valuation model in determining the grant date fair value of stock options issued to employees and non-employee directors. This model was used to estimate the fair value of the stock options granted on the date of grant, using the assumptions noted in the following table:

	Year Ended December 31,
	2011		2010		2009
Expected life (years) (1)	6.00		6.00		n/a
Risk-free interest rate (2)	1.88	%	2.85	%	n/a
Volatility (3)	114.51	%	110.83	%	n/a
Dividend yield	0.28	%	0.10	%	n/a

 ______________

(1) In 2011 and 2010, the expected life of stock options granted was estimated to be less than the full term of the options awarded. The expected life is estimated using historical data.

(2) The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant.

(3) Volatility determined at the date of grant using historical share price volatility and expected life of each award.

Schedule of valuation assumptions of performance based RSU

The grant date fair value of performance-based RSUs is determined using the Monte Carlo valuation model. The following are assumptions used in our calculation of the 2010 grant date fair value of performance-based RSUs to be settled in common stock:

	2010
Expected life	3 years
Risk-free interest rate	1.4	%
Volatility	154.5	%
Dividend yield	0.12	%

Schedule of changes in RSU to be settled under 2008 Equity Plan

Information with regard to RSUs to be settled in stock for the periods indicated is as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Unvested, December 31, 2010	216,300		$	11.72
Granted	323,866		5.86
Vested	—		—
Forfeited	(34,983	)	10.03
Unvested, December 31, 2011	505,183		$	8.08

Schedule of restricted stock under Equity Plans

Information with regard to restricted stock for the periods indicated is as follows:

	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Unvested, December 31, 2010	399,575		$	2.69
Granted	—		—
Vested	(66,247	)	3.06
Forfeited	(8,550	)	2.64
Unvested, December 31, 2011	324,778		$	2.67

Schedule of valuation assumptions of ESPP

The following are assumptions used in our calculation of ESPP compensation expense during 2011:

	January 1, 2011		July 1, 2011
Expected life	6 months		6 months
Risk-free interest rate	0.45	%	0.39	%
Volatility	69.96	%	79.68	%
Dividend yield	0.06	%	0.12	%

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Note 3 - Segment Reporting Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized financial information concerning our current and previous operating segments, as of and for the periods indicated, are as follows:

	December 31, 2011
(In thousands)	Mortgage Insurance			Financial Guaranty			Consolidated
Net premiums written—insurance	$	717,264		$	(10,017	)	$	707,247
Net premiums earned—insurance	$	680,895		$	75,130		$	756,025
Net investment income	93,678			69,842			163,520
Net gains on investments	126,205			75,972			202,177
Net impairment losses recognized in earnings	(1,202		)	—			(1,202		)
Change in fair value of derivative instruments	(632		)	629,027			628,395
Net gains on other financial instruments	3,864			189,465			193,329
Other income	5,369			230			5,599
Total revenues	908,177			1,039,666			1,947,843
Provision for losses	1,293,857			2,664			1,296,521
Change in reserve for premium deficiency	(7,092		)	—			(7,092		)
Policy acquisition costs	36,051			16,712			52,763
Other operating expenses	132,225			43,585			175,810
Interest expense	13,894			47,500			61,394
Total expenses	1,468,935			110,461			1,579,396
Equity in net income of affiliates	—			65			65
Pretax (loss) income	(560,758		)	929,270			368,512
Income tax provision (benefit)	83,157			(16,795		)	66,362
Net (loss) income	$	(643,915	)	$	946,065		$	302,150
Cash and investments	$	3,210,279		$	2,635,889		$	5,846,168
Deferred policy acquisition costs	52,094			87,812			139,906
Total assets	3,470,103			3,186,662			6,656,765
Unearned premiums	233,446			403,926			637,372
Reserve for losses and LAE	3,247,900			63,002			3,310,902
VIE debt	9,450			218,790			228,240
Derivative liabilities	—			126,006			126,006

	December 31, 2010
(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Consolidated
Net premiums written—insurance	$	699,909		$	(8,028	)	$	—	$	691,881
Net premiums earned—insurance	$	739,631		$	86,102		$	—	$	825,733
Net investment income	104,030			74,730			—		178,760
Net gains on investments	84,004			55,940			—		139,944
Net impairment losses recognized in earnings	(90		)	—			—		(90		)
Change in fair value of derivative instruments	32,381			(591,093		)	—		(558,712		)
Net losses on other financial instruments	(48,137		)	(163,544		)	—		(211,681		)
Gain on sale of affiliate	—			—			34,815		34,815
Other income	7,208			364			1,124		8,696
Total revenues	919,027			(537,501		)	35,939		417,465
Provision for losses	1,730,801			8,443			—		1,739,244
Change in reserve for premium deficiency	(14,621		)	—			—		(14,621		)
Policy acquisition costs	36,102			17,367			—		53,469
Other operating expenses	141,172			50,520			250		191,942
Interest expense	11,668			30,109			—		41,777
Total expenses	1,905,122			106,439			250		2,011,811
Equity in net income of affiliates	—			78			14,590		14,668
Pretax (loss) income	(986,095		)	(643,862		)	50,279		(1,579,678		)
Income tax provision	157,082			51,509			17,598		226,189
Net (loss) income	$	(1,143,177	)	$	(695,371	)	$	32,681	$	(1,805,867	)
Cash and investments	$	4,037,578		$	2,643,052		$	—	$	6,680,630
Deferred policy acquisition costs	41,939			106,387			—		148,326
Total assets	4,801,953			2,818,934			—		7,620,887
Unearned premiums	197,260			489,104			—		686,364
Reserve for losses and LAE	3,524,971			71,764			—		3,596,735
VIE debt	141,006			379,108			—		520,114
Derivative liabilities	—			723,579			—		723,579

	December 31, 2009
(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Consolidated
Net premiums written—insurance	$	630,076		$	(186,228	)	$	—		$	443,848
Net premiums earned—insurance	$	724,423		$	101,478		$	—		$	825,901
Net investment income	129,871			84,315			4			214,190
Net gains on investments	161,637			95,504			—			257,141
Net impairment losses recognized in earnings	(9,246		)	(23		)	—			(9,269		)
Change in fair value of derivative instruments	(14,428		)	114,386			—			99,958
Net (losses) gains on other financial instruments	(96,022		)	7,453			—			(88,569		)
Other income	12,258			1,394			374			14,026
Total revenues	908,493			404,507			378			1,313,378
Provision for losses	1,300,827			36,747			—			1,337,574
Change in reserve for premium deficiency	(61,504		)	—			—			(61,504		)
Policy acquisition costs	27,563			35,471			—			63,034
Other operating expenses	140,487			67,223			(3,940		)	203,770
Interest expense	15,372			30,638			—			46,010
Total expenses	1,422,745			170,079			(3,940		)	1,588,884
Equity in net income of affiliates	—			—			33,226			33,226
Pretax (loss) income	(514,252		)	234,428			37,544			(242,280		)
Income tax (benefit) provision	(176,456		)	68,641			13,414			(94,401		)
Net (loss) income	$	(337,796	)	$	165,787		$	24,130		$	(147,879	)
Cash and investments	$	3,775,682		$	2,438,694		$	—		$	6,214,376
Deferred policy acquisition costs	35,854			124,427			—			160,281
Total assets	4,949,815			2,985,919			121,424			8,057,158
Unearned premiums	240,346			583,275			—			823,621
Reserve for losses and LAE	3,450,538			128,444			—			3,578,982
VIE debt	287,995			8,085			—			296,080
Derivative liabilities	—			238,697			—			238,697

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Note 10 - Losses and LAE Losses and LAE for Mortgage Insurance (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Reserve for losses and loss adjustment expenses
Reserve for Losses and Loss Adjustment Expenses	$ 3,310,902		$ 3,596,735		$ 3,578,982
Total Reserve for Losses and LAE [Member]
Reserve for losses and loss adjustment expenses
Reserve for Losses and Loss Adjustment Expenses	3,310,902		3,596,735
Mortgage Insurance Segment
Reserve for losses and loss adjustment expenses
Reserve for Losses and Loss Adjustment Expenses	3,247,900		3,524,971
Financial Guaranty Segment
Reserve for losses and loss adjustment expenses
Reserve for Losses and Loss Adjustment Expenses	63,002	[1]	71,764	[1]
Trade Credit Reinsurance and Surety Insurance [Member]
Reserve for losses and loss adjustment expenses
Reserve for Losses and Loss Adjustment Expenses	$ 2,500	[1]	$ 4,300	[1]

[1] Includes reserve for losses and LAE for our trade credit reinsurance and surety business of $2.5 million and $4.3 million at December 31, 2011 and 2010, respectively.

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Note 16 - Share-Based and Other Compensation Plans (Other Compensation Programs) (Details) (USD $)	12 Months Ended															1 Months Ended	12 Months Ended						1 Months Ended	12 Months Ended	1 Months Ended	12 Months Ended						1 Months Ended	12 Months Ended		1 Months Ended	12 Months Ended	1 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009		Dec. 31, 2011 Cash Settled [Member]		Dec. 31, 2010 Cash Settled [Member]		Dec. 31, 2009 Cash Settled [Member]		Dec. 31, 2011 Officer LTI Plan Cash Based [Member]	Dec. 31, 2010 Officer LTI Plan Cash Based [Member]	Dec. 31, 2009 Officer LTI Plan Cash Based [Member]	Feb. 28, 2011 Officer LTI Plan Cash Based [Member] Cash Settled [Member]	Dec. 31, 2011 Officer LTI Plan Cash Based [Member] Cash Settled [Member]		Dec. 31, 2010 Officer LTI Plan Cash Based [Member] Cash Settled [Member]		Dec. 31, 2009 Officer LTI Plan Cash Based [Member] Cash Settled [Member]		Feb. 28, 2011 Officer LTI Plan Cash Based [Member] Minimum [Member] Cash Settled [Member]	Dec. 31, 2011 Officer LTI Plan Cash Based [Member] Minimum [Member] Cash Settled [Member]	Feb. 28, 2011 Officer LTI Plan Cash Based [Member] Maximum [Member] Cash Settled [Member]	Dec. 31, 2011 Officer LTI Plan Cash Based [Member] Maximum [Member] Cash Settled [Member]	Dec. 31, 2011 Officer LTI Plan Cash Based [Member] Measurement over three-year performance period [Member]	Dec. 31, 2011 Officer LTI Plan Cash Based [Member] Measurement over four-year performance period [Member]	Dec. 31, 2011 Executive LTI Plan [Member]	Dec. 31, 2010 Executive LTI Plan [Member]	Dec. 31, 2009 Executive LTI Plan [Member]	Aug. 31, 2011 Executive LTI Plan [Member] Cash Settled [Member]	Dec. 31, 2011 Executive LTI Plan [Member] Cash Settled [Member]	Dec. 31, 2011 Executive LTI Plan [Member] Minimum [Member]	Aug. 31, 2011 Executive LTI Plan [Member] Minimum [Member] Cash Settled [Member]	Dec. 31, 2011 Executive LTI Plan [Member] Maximum [Member]	Aug. 31, 2011 Executive LTI Plan [Member] Maximum [Member] Cash Settled [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Cash Payout Amount as Percentage of Participants' Base Salaries																																		45.00%		300.00%
Performance target weight as percentage of total performance target																											50.00%	50.00%
Performance period																											3 years	4 years					3 years
Cash payout range amount as percentage of target award																							147.00%	0.00%	172.00%	200.00%								0.00%	144.00%	400.00%	300.00%
Compensation cost recognized related to non-share-based awards	$ (969,000)	[1]	$ 20,369,000	[1]	$ 15,160,000	[1]	$ (4,717,000)	[1]	$ 11,343,000	[1]	$ 7,202,000	[1]	$ 500,000	$ 1,100,000	$ 3,000,000		$ 32,000	[1]	$ 5,618,000	[1]	$ 2,322,000	[1]							$ 5,500,000	$ 3,100,000	$ 2,700,000
Cash used to settle awards																$ 8,400,000																$ 8,200,000

[1] For purposes of calculating compensation cost recognized, we consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. Under the terms of our awards, legal vesting upon retirement occurs when the grantee actually separates from service.

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Note 20 - Net Income (Loss) Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss)	$ 302,150	$ (1,805,867)	$ (147,879)
Average common shares outstanding	132,372,000	114,697,000	81,937,000
Increase in shares due to potential exercise of common stock equivalents-diluted basis	1,491,000	0	0
Adjusted shares outstanding-diluted	133,863,000	114,697,000	81,937,000
Net income (loss) per share-basic	$ 2.28	$ (15.74)	$ (1.80)
Net income (loss) per share-diluted	$ 2.26	$ (15.74)	$ (1.80)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,490,462	4,366,342	4,635,530

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Note 7 - Investments Schedule of Unrealized Losses (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Continuous Loss Position Less Than Twelve Months
Number of Securities	10	45
Fair value HTM And AFS state and municipal obligations	$ 12,620,000	$ 24,199,000
Unrealized losses AFS And HTM state and municipal obligations	984,000	1,085,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities	28	28
Fair value HTM And AFS state and municipal obligations	82,082,000	189,798,000
Unrealized Losses AFS And HTM state and municipal obligations	5,832,000	70,203,000
Continuous Loss Position, Total
Number of securities	38	73
Fair Value HTM And AFS state and municipal obligations	94,702,000	213,997,000
Unrealized losses AFS and HTM state and municipal obligations	6,816,000	71,288,000
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	0
State and municipal obligations
Continuous Loss Position Less Than Twelve Months
Number of Securities	1	6
Fair value HTM And AFS state and municipal obligations	525,000	3,507,000
Unrealized losses AFS And HTM state and municipal obligations	17,000	110,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities	9	26
Fair value HTM And AFS state and municipal obligations	72,653,000	189,194,000
Unrealized Losses AFS And HTM state and municipal obligations	4,866,000	70,179,000
Continuous Loss Position, Total
Number of securities	10	32
Fair Value HTM And AFS state and municipal obligations	73,178,000	192,701,000
Unrealized losses AFS and HTM state and municipal obligations	4,883,000	70,289,000
Corporate bonds and notes
Continuous Loss Position Less Than Twelve Months
Number of Securities	6	31
Fair value available-for-sale securities	2,457,000	16,364,000
Unrealized losses available-for-sale securities	97,000	852,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities	18	2
Fair value available-for-sale securities	8,902,000	604,000
Unrealized losses available-for-sale securities	950,000	24,000
Continuous Loss Position, Total
Number of securities	24	33
Fair value available-for-sale securities	11,359,000	16,968,000
Unrealized losses available-for-sale securities	1,047,000	876,000
RMBS
Continuous Loss Position Less Than Twelve Months
Number of Securities	2	1
Fair value available-for-sale securities	354,000	1,436,000
Unrealized losses available-for-sale securities	1,000	14,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities	0	0
Fair value available-for-sale securities	0	0
Unrealized losses available-for-sale securities	0	0
Continuous Loss Position, Total
Number of securities	2	1
Fair value available-for-sale securities	354,000	1,436,000
Unrealized losses available-for-sale securities	1,000	14,000
CMBS
Continuous Loss Position Less Than Twelve Months
Number of Securities	0	3
Fair value available-for-sale securities	0	1,885,000
Unrealized losses available-for-sale securities	0	39,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities	1	0
Fair value available-for-sale securities	527,000	0
Unrealized losses available-for-sale securities	16,000	0
Continuous Loss Position, Total
Number of securities	1	3
Fair value available-for-sale securities	527,000	1,885,000
Unrealized losses available-for-sale securities	16,000	39,000
Other ABS
Continuous Loss Position Less Than Twelve Months
Number of Securities		2
Fair value available-for-sale securities		802,000
Unrealized losses available-for-sale securities		5,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities		0
Fair value available-for-sale securities		0
Unrealized losses available-for-sale securities		0
Continuous Loss Position, Total
Number of securities		2
Fair value available-for-sale securities		802,000
Unrealized losses available-for-sale securities		5,000
Equity securities
Continuous Loss Position Less Than Twelve Months
Number of Securities	1	2
Fair value available-for-sale securities	9,284,000	205,000
Unrealized losses available-for-sale securities	869,000	65,000
Continuous Unrealized Loss Position, Twelve Months Or Greater
Number of securities	0	0
Fair value available-for-sale securities	0	0
Unrealized losses available-for-sale securities	0	0
Continuous Loss Position, Total
Number of securities	1	2
Fair value available-for-sale securities	9,284,000	205,000
Unrealized losses available-for-sale securities	$ 869,000	$ 65,000

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Note 12 - Financial Guaranty Insurance Contracts Adjustments To Premiums Earned For Financial Guaranty Contracts (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Adjustments To Premiums Earned For Financial Guaranty Contracts [Line Items]
Refundings	$ 27.2	$ 35.8
Recaptures/commutations	2.8	0
Adjustments to installment premiums, gross of commissions	0.4	0.4
Unearned premium acceleration upon establishment of case reserves	3.2	1.4
Adjustment To Premiums Earned Foreign Exchange Revaluation Gross of Commission	1.1	(1.4)
Policy cancellations	0	2.3
Total Adjustment To Premiums Earned For Financial Guaranty Contracts	$ 34.7	$ 38.5

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Note 4 - Derivative Instruments Derivative Contract (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
NIMS related and other [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	0	[1]
Notional Amount of Derivatives	$ 0	[1]
Derivative assets (liabilities), at fair value, net	1.8	[1]
Corporate collateralized debt obligations (CDO's)[Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	74
Notional Amount of Derivatives	29,493.5
Derivative assets (liabilities), at fair value, net	(5.1)
Non Corporate CDOS and other derivative transactions[Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	55
Notional Amount of Derivatives	5,985.3
Derivative assets (liabilities), at fair value, net	(76.5)
Trust Preferred Securities (TruPs) [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	19
Notional Amount of Derivatives	1,894.2
Derivative assets (liabilities), at fair value, net	(26.5)
CDOS of commercial mortgage backed securities (CMBS)[Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	4
Notional Amount of Derivatives	1,831.0
Derivative assets (liabilities), at fair value, net	(27.1)
Structured finance [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	8
Notional Amount of Derivatives	716.6
Derivative assets (liabilities), at fair value, net	(13.4)
Public finance [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	24
Notional Amount of Derivatives	1,543.5
Derivative assets (liabilities), at fair value, net	(9.5)
Total Assumed [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	244
Notional Amount of Derivatives	1,037.9
Derivative assets (liabilities), at fair value, net	(9.5)
Assumed structured finance [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	235
Notional Amount of Derivatives	899.4
Derivative assets (liabilities), at fair value, net	(8.2)
Assumed public finance [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	9
Notional Amount of Derivatives	138.5
Derivative assets (liabilities), at fair value, net	(1.3)
Financial Guaranty VIE derivative liabilities [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	0	[2]
Notional Amount of Derivatives	0	[2]
Derivative assets (liabilities), at fair value, net	(19.5)	[2]
Radian Group Consolidated [Member]
Derivatives, Fair Value [Line Items]
Number of Credit Risk Derivatives Held	373
Notional Amount of Derivatives	36,516.7		41,600.0
Derivative assets (liabilities), at fair value, net	$ (108.8)		$ (697.4)

[1] Represents NIMS derivative assets related to consolidated NIMS VIEs. Also includes common stock warrants. Because none of these investments represent financial guaranty contracts that we issued, they cannot become liabilities, and therefore, do not represent additional par exposure.

[2] Represents the fair value of an interest rate swap included in the consolidation of one of our financial guaranty transactions. The notional amount of the interest rate swap does not represent additional par exposure, and therefore, is excluded from this table. See Note 5 for information on our maximum exposure to loss from our consolidated financial guaranty transactions.

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Note 16 - Share-Based and Other Compensation Plans (SARs - Cash Settled) (Details) (2008 Equity Plan [Member], Cash Settled [Member], USD $)	12 Months Ended
	Dec. 31, 2011 years	Dec. 31, 2010	Dec. 31, 2009
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants by Compensation Committee		1,623,500	192,100
Grant Price		$ 10.42	$ 2.68
Contractual term (in years)	5
Stock Appreciation Rights (SARs) 2010 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated fair value	$ 1.43
Stock Appreciation Rights (SARs) 2009 Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated fair value	$ 0.96

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Note 8 - Investments in Affiliates (Details) (USD $)	12 Months Ended			3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Jun. 30, 2010 Sherman [Member]	Dec. 31, 2010 Sherman [Member]	Dec. 31, 2009 Sherman [Member]
Equity Method Investment, Realized Gain (Loss) on Disposal [Abstract]
Equity Method Investment, Ownership Percentage				28.70%
Proceeds from Sale of Equity Method Investments				$ 172,000,000
Gain on sale of affiliate	0	34,815,000	0	34,800,000
Related Party Transaction, Expenses from Transactions with Related Party				1,300,000
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity				29,700,000
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Investments in and Advances to Affiliates, at Fair Value					121,424,000	99,656,000
Income (Loss) from Equity Method Investments	65,000	14,668,000	33,226,000		14,590,000	33,226,000
Investments in and Advances to Affiliates, at Fair Value, Dividends Received					(29,498,000)	(11,040,000)
Investments in and Advances to Affiliates, at Fair Value, Other Comprehensive Loss					(381,000)	(418,000)
Investments in and Advances to Affiliates, at Fair Value, Sale of Ownership Interest					(106,135,000)	0
Investments in and Advances to Affiliates, at Fair Value					0	121,424,000
Equity Method Investment, Summarized Financial Information [Abstract]
Equity Method Investment, Summarized Financial Information, Assets						1,913,296,000
Equity Method Investment, Summarized Financial Information, Liabilities						1,461,076,000
Equity Method Investment, Summarized Financial Information, Revenue From Receivable Portfolios Net of Amortization						1,216,742,000
Equity Method Investment, Summarized Financial Information, Other Income						16,873,000
Equity Method Investment, Summarized Financial Information, Derivative Mark to Market						12,071,000
Equity Method Investment, Summarized Financial Information, Revenue						1,245,686,000
Equity Method Investment, Summarized Financial Information, Operating and Servicing Expenses						515,125,000
Equity Method Investment, Summarized Financial Information, Provision for Loan Losses						446,917,000
Equity Method Investment, Summarized Financial Information, Interest Expense						105,537,000
Equity Method Investment, Summarized Financial Information, Other Expenses						42,542,000
Equity Method Investment, Summarized Financial Information, Total Expenses						1,110,121,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)						$ 135,565,000

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Note 12 - Financial Guaranty Insurance Contracts Premium Receivable and Unearned Premium NPV and Accretion (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended			12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Premiums Written Accretion	Dec. 31, 2010 Premiums Written Accretion	Dec. 31, 2011 Premiums Earned Accretion	Dec. 31, 2010 Premiums Earned Accretion	Dec. 31, 2011 Policy Acquisition Costs Accretion	Dec. 31, 2010 Policy Acquisition Costs Accretion
Premiums receivable	$ 34.3	$ 44.0	$ 54.4
Unearned premiums	39.8	60.5
Financial Guarantee Insurance Contracts, Premium Received over Contract Period, Premium Receivable, Accretion [Abstract]
Accretion of Premium Receivable and Unearned Premium				$ 1.2	$ 1.5	$ 1.2	$ 1.5	$ 0.3	$ 0.3
Premium Receivable, Weighted Average Risk Free Discount Rate	2.60%

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Note 10 - Losses and LAE Rescissions And Denials (Details) (USD $) In Millions, unless otherwise specified	36 Months Ended																					12 Months Ended
	Dec. 31, 2011	Dec. 31, 2011 Q1 2009 [Member]		Dec. 31, 2011 Q2 2009 [Member]		Dec. 31, 2011 Q3 2009 [Member]		Dec. 31, 2011 Q4 2009 [Member]		Dec. 31, 2011 Q1 2010 [Member]		Dec. 31, 2011 Q2 2010 [Member]		Dec. 31, 2011 Q3 2010 [Member]		Dec. 31, 2011 Q4 2010 [Member]		Dec. 31, 2011 Q1 2011 [Member]		Dec. 31, 2011 Q2 2011 [Member]		Dec. 31, 2011 First Lien Claims First Loss Position [Member]		Dec. 31, 2010 First Lien Claims First Loss Position [Member]		Dec. 31, 2009 First Lien Claims First Loss Position [Member]		Dec. 31, 2011 First Lien Claims Second Loss Position [Member]		Dec. 31, 2010 First Lien Claims Second Loss Position [Member]		Dec. 31, 2009 First Lien Claims Second Loss Position [Member]		Dec. 31, 2011 Mortgage Insurance Segment		Dec. 31, 2010 Mortgage Insurance Segment		Dec. 31, 2009 Mortgage Insurance Segment		Dec. 31, 2011 Mortgage Insurance Segment	Dec. 31, 2010 Mortgage Insurance Segment
Rescissions And Denials [Line Items]
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials																																								$ 631	$ 922
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity																																								96
Claims Rescissions and Denials [Abstract]
Claim rescissions																						360.0		339.2		330.7		114.2		199.1		372.9
Claim denials																						133.9		200.2		67.4		37.0		61.5		54.6
Total rescissions and denials																						493.9	[1]	539.4	[1]	398.1	[1]	151.2	[2]	260.6	[2]	427.5	[2]
Total First Lien Claims Rescinded Or Denied																																		645.1	[3]	800.0	[3]	825.6	[3]
Non Overturned Rebuttals on Rescinded First Lien Claims [Abstract]
Total Non Overturned Rebuttals On Rescinded First Lien Claims First Loss Position	460.7
Total Non Overturned Rebuttals On Rescinded First Lien Claims Second Loss Position	191.8
Total Non Overturned Rebuttals On Rescinded First Lien Claims	652.5
Accrued Liability For Premiums Expected To Be Refunded From Rescissions																																		$ 57.2		$ 43.5
Cumulative Denial And Rescission Rates Net Of Reinstatements [Abstract]
Claim Received Quarter		Q1 2009		Q2 2009		Q3 2009		Q4 2009		Q1 2010		Q2 2010		Q3 2010		Q4 2010		Q1 2011		Q2 2011
Cummulative Rescission Rate For Each Quarter		23.80%	[4]	25.60%	[4]	22.70%	[4]	20.80%	[4]	18.90%	[4]	18.30%	[4]	16.60%	[4]	18.20%	[4]	21.40%	[4]	22.60%	[4]
Percentage Of Claims Resolved		100.00%	[5]	100.00%	[5]	100.00%	[5]	100.00%	[5]	99.00%	[5]	99.00%	[5]	98.00%	[5]	97.00%	[5]	92.00%	[5]	79.00%	[5]

[1] Related to claims from policies in which we were in a first loss position and would have paid the claim absent the rescission or denial.

[2] Related to claims from policies in which we were in a second loss position. These rescissions or denials may not have resulted in a claim payment obligation due to deductibles and other exposure limitations included in our policies.

[3] Includes a small number of submitted claims that were subsequently withdrawn by the insured.

[4] Rescission/Denial rates represent the ratio of claims rescinded or denied to claims received (by claim count) and represent (as of December 31, 2011) the cumulative rate for each quarter based on number of claims received during that quarter. Until all of the claims received during the periods shown have been internally resolved, the rescission/denial rates for each quarter will be subject to change. These rates also will remain subject to change based on reinstatements of previously rescinded policies or denied claims.

[5] The percentage of claims resolved for each quarter presented in the table above, represents the number of claims that have been internally resolved as a percentage of the total number of claims received for that specific quarter. A claim is considered internally resolved when it is either paid or it is concluded that the claim should be denied or rescinded, though such denials or rescissions could be challenged and, potentially reinstated. For the third and fourth quarters of 2011, a significant portion of claims received for those quarters have not been internally resolved; therefore, we do not believe the cumulative rescission rates for those periods are presently meaningful and are therefore not presented.

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Note 12 - Financial Guaranty Insurance Contracts Future Premiums Net of Commission on Financial Guaranty Contracts (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Future Expected Premium Payments Net To Be Recognized [Line Items]
First quarter 2012	$ 1.1
Second quarter 2012	1.8
Third quarter 2012	1.4
Fourth quarter 2012	0.7
2012 Total	5.0
2013	3.9
2014	1.5
2015	2.9
2016	2.6
2012-2016 Total	15.9
2017-2021	10.1
2022-2026	6.8
2027-2031	4.4
After 2031	5.9
Total	$ 43.1

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Note 9 - Reinsurance Reinsurance Text (Details) (USD $)	12 Months Ended											1 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]	Dec. 31, 2010 Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]	Dec. 31, 2009 Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]	Dec. 31, 2011 Reinsurance Premiums for Insurance Companies [Member]	Dec. 31, 2010 Reinsurance Premiums for Insurance Companies [Member]	Dec. 31, 2009 Reinsurance Premiums for Insurance Companies [Member]		Dec. 31, 2009 Commuted or Ceded [Member]	Jan. 24, 2012 January 2012 Assured Guaranty Reinsurance Commutation [Member]	Jan. 24, 2012 January 2012 Assured Guaranty Ceded Public Finance Transaction [Member]	Jan. 24, 2012 January 2012 Assured Guaranty Ceded Public Finance Transaction [Member] Commuted or Ceded [Member]
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount				$ 756,025,000	$ 825,733,000	$ 825,901,000
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Ceded to Other Companies				(38,740,000)	(94,497,000)	(139,626,000)
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Assumed from Other Companies				32,337,000	29,063,000	45,749,000
Prepaid Reinsurance Premiums	800,000	1,000,000
Net Par Outstanding Commuted in 2009											9,800,000,000
Assumed Reinsurance Exposure Commuted In January 2012												13,800,000,000	1,800,000,000	1,800,000,000
Premiums Written, Net, Consolidated [Abstract]
Direct Premiums Written	755,758,000	788,321,000	790,052,000				755,758,000	788,321,000	790,052,000
Assumed Premiums Written	11,162,000	6,585,000	207,074,000				11,162,000	6,585,000	207,074,000	[1]	185,600,000
Ceded Premiums Written	(37,349,000)	(89,855,000)	(139,130,000)				(37,349,000)	(89,855,000)	(139,130,000)
Net premiums written	707,247,000	691,881,000	443,848,000				707,247,000	691,881,000	443,848,000
Reinsurance Premiums for Insurance Companies, by Product Segment, Gross Amount				762,428,000	891,167,000	919,778,000
Premiums Earned, Net, Property and Casualty [Abstract]
Reinsurance Premiums for Insurance Companies, by Product Segment, Gross Amount				762,428,000	891,167,000	919,778,000
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Assumed from Other Companies				32,337,000	29,063,000	45,749,000
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Ceded to Other Companies				(38,740,000)	(94,497,000)	(139,626,000)
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount				$ 756,025,000	$ 825,733,000	$ 825,901,000

[1] This amount includes a $185.6 million reduction related to the commutation of $9.8 billion in net par outstanding.

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Note 7 - Investments Available For Sale Securities, Proceeds and Gains (Losses) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Available-for-sale Securities [Line Items]
Proceeds received from redemptions	$ 32,214	$ 50,846	$ 199,551
Proceeds from sales of fixed-maturity investments available for sale	136,217	1,218,460	2,463,626
Proceeds received from sales	52,014	15,033	33,807
Fixed Maturities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds received from redemptions	32,214	50,846	199,551
Proceeds from sales of fixed-maturity investments available for sale	136,217	1,218,460	2,463,626
Gross investment gains from sales and redemptions	1,577	23,363	94,974
Gross investment losses from sales and redemptions	(54,050)	(31,024)	(3,397)
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Proceeds received from sales	52,014	15,033	33,807
Gross investment gains from sales and redemptions	6,238	2,006	1,077
Gross investment losses from sales and redemptions	$ (10)	$ (5)	$ (313)

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Note 18 - Commitments and Contingencies Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

On June 26, 2008, we filed a complaint for declaratory judgment in the U.S. District Court for the Eastern District of Pennsylvania, naming IndyMac Bank (“IndyMac”), Deutsche Bank National Trust Company (“Deutsche Bank”), Financial Guaranty Insurance Company (“FGIC”), Ambac Assurance Corporation (“Ambac”) and MBIA Insurance Corporation (“MBIA”) as defendants. The suit involved three of our pool policies covering second-lien mortgages entered into in late 2006 and early 2007, with respect to loans originated by IndyMac. We were in a second loss position behind IndyMac and in front of three defendant financial guaranty companies. We alleged that the representations and warranties made to us to induce us to issue the policies were materially false, and that as a result, the policies should be void. The total amount of our claim liability for all three pool policies was approximately $77 million and represented the aggregate risk in force related to these policies. In March 2009, FGIC, Ambac, and MBIA served us with demands to arbitrate certain issues relating to the same three pool policies that were the subject of our declaratory judgment complaint. In July 2009, the court declined to dismiss our declaratory judgment action, but stayed the action to permit the arbitrations to proceed first. As previously disclosed, between August 2009 and June 2011, we settled our disputes with Ambac, Deutsche Bank, MBIA and FGIC with respect to all three of the pool policies. In the aggregate, we settled our $77 million of total claim liability under the three pool policies for approximately $44 million. Following these settlements, in July 2011, the declaratory judgment action against IndyMac, Ambac, MBIA, FGIC and Deutsche Bank, and the arbitrations commenced by Ambac, MBIA and FGIC were dismissed with prejudice.

On August 13, 2010, American Home Mortgage Servicing, Inc. ("AHMSI") filed a complaint against Radian Guaranty in the United States District Court for the Central District of California, on its own behalf and as servicer for certain RMBS insured by Radian Guaranty under27separate bulk primary mortgage insurance policies. AHMSI contends that in 2008, it mistakenly sent cancellation notices to Radian Guaranty for certain loans covered under these policies, and that Radian Guaranty wrongfully refused to reinstate coverage for these loans after AHMSI discovered the error. We believe that approximately271 loans were affected by this error. According to AHMSI, Radian Guaranty's refusal to reinstate coverage was in breach of its contractual duties under the policies and in bad faith. AHMSI is seeking money damages and injunctive relief requiring Radian Guaranty to reinstate full coverage on all loans insured under the policies. On October 18, 2010, Radian Guaranty filed a motion to dismiss this case, which the court granted on December 16, 2010, stating that AHMSI failed to establish that it is the real party in interest. On January 5, 2011, AHMSI filed an amended complaint that included the trustees of the securities as additional plaintiffs to the complaint. On May 31, 2011, Radian answered the amended complaint and, subsequently, filed a counterclaim seeking a declaratory judgment that, among other things, it is not in breach of its contractual duties. Radian also filed, and the court subsequently dismissed, a third party complaint against Sand Canyon Corporation, the servicer who allegedly made the error that led to the cancellation of the certificates of insurance, seeking indemnity and/or contribution. 

On August 1, 2011, Radian Guaranty filed a lawsuit against Quicken Loans Inc. ("Quicken") in the United States District Court for the Eastern District of Pennsylvania.  Radian Guaranty's complaint seeks a declaratory judgment that it properly rescinded mortgage insurance coverage under Radian Guaranty's master policy and delegated underwriting endorsement for approximately140home mortgage loans originated by Quicken based upon deficiencies and improprieties in the underwriting process. On August 24, 2011, Quicken filed a motion to dismiss the complaint. On September 12, 2011, Radian Guaranty filed a response to Quicken's motion to dismiss, and on September 29, 2011, Quicken filed its reply.

On December 9, 2011, an action titled Samp v. JPMorgan Chase Bank, N.A., was filed in the United States District Court for the Central District of California. The defendants are JPMorgan Chase Bank, N.A., its affiliates (collectively, “JPMorgan”), and several mortgage insurers, including Radian Guaranty. The plaintiffs purport to represent a class of borrowers whose loans supposedly were referred to mortgage insurers by JPMorgan in exchange for reinsurance agreements between the mortgage insurers and JPMorgan's captive reinsurer. Plaintiffs assert violations of Real Estate Settlement Practices Act of 1974 ("RESPA"). The mortgage insurer defendants have demanded that the plaintiffs voluntarily dismiss from the lawsuit any mortgage insurer, such as Radian Guaranty, that did not insure any of the plaintiffs' loans. If that demand is not met, Radian Guaranty and others of the mortgage insurers intend to move to dismiss the claims against them. 

  On December 30, 2011, a putative class action under RESPA titled White v. PNC Financial Services Group was filed in the United States District Court for the Eastern District of Pennsylvania. The facts of this case are substantially similar to those of the Samp case discussed above; however, in this case, Radian Guaranty has insured the loan of one of the plaintiffs. Radian Guaranty intends to move to dismiss the complaint on a number of grounds. 

The elevated levels of our rate of rescissions and denials have led to an increased risk of litigation by lenders and policyholders challenging our right to rescind coverage or deny claims. Under our master insurance policy, any suit or action arising from any right of the insured under the policy must be commenced within two years after such right first arose and within three years for certain other policies, including certain pool insurance policies. Recently, we have faced an increasing number of challenges from certain lender customers regarding our insurance rescissions and claim denials, which have resulted in some reversals of our decisions regarding rescissions or denials. We are currently in discussions with these customers regarding rescissions or denials, which if not resolved, could result in arbitration or additional judicial proceedings. Although we believe that our rescissions and denials are justified under our policies, if we are not successful in defending the rescissions or denials in any potential legal actions, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. See Note 10 for further information.

In addition to the above litigation, we are involved in litigation that has arisen in the normal course of our business. We are contesting the allegations in each such pending action and believe, based on current knowledge and after consultation with counsel, that the outcome of such litigation will not have a material adverse effect on our consolidated financial position and results of operations.

Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities ("MBS"). To allow our customers to comply with these regulations, we typically were required, depending on the amount of credit enhancement we were providing, to provide (1) audited financial statements for the insurance subsidiary participating in the transaction, or (2) a full and unconditional holding-company-level guarantee for our insurance subsidiaries' obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty involving approximately $166.8 million of remaining credit exposure as of December 31, 2011.

On March 1, 2011, EFSG sold its 45% interest in the holding company of a Brazilian insurance company, which specializes in surety and agricultural insurance, to another owner for a nominal purchase price. This holding company and its subsidiaries are subject to regulation by The Superintendence of Private Insurance, the regulatory agency responsible for the supervision and control of the insurance market in Brazil. Although EFSG wrote off its entire interest in this company in 2005 and has sold its ownership interest, under Brazilian law, it is possible that EFSG could become liable for its proportionate share of the liabilities of the company related to the period in which EFSG was a significant shareholder, if the company was to become insolvent and had insufficient capital to satisfy its outstanding liabilities. EFSG's share of the liabilities of the company attributable to this period was approximately $103.4 million as of December 31, 2010.

As part of the non-investment grade component of our investment portfolio, we had unfunded commitments of $9.6 million at December 31, 2011, related to alternative investments that are primarily private equity structures. These commitments have capital calls expected through 2015, with the possibility of additional calls through 2017, and certain fixed expiration dates or other termination clauses.

Our mortgage insurance business provides an outsourced underwriting service to its customers known as contract underwriting. Typically, we agree that if we make a material error in underwriting a loan, we will provide a remedy to the customer, by purchasing the loan or placing additional mortgage insurance coverage on the loan, or by indemnifying the customer against loss up to a maximum specified amount. By providing these remedies, we assume some credit risk and interest-rate risk if an error is found during the limited remedy period in the agreements governing our provision of contract underwriting services. Recently, we limited the recourse available to our contract underwriting customers to apply only to those loans that we are simultaneously underwriting for compliance with secondary market compliance and for potential mortgage insurance. In 2011, we paid losses related to contract underwriting remedies of approximately $7.2 million. Rising mortgage interest rates or further economic uncertainty may expose the mortgage insurance business to an increase in such costs. In 2011, our provision for contract underwriting expenses was approximately $9.3 million and our reserve for contract underwriting obligations at December 31, 2011, was $4.5 million. We monitor this risk and negotiate our underwriting fee structure and recourse agreements on a client-by-client basis. We also routinely audit the performance of our contract underwriters.

We have incentive, retention and severance agreements with certain employees in our financial guaranty business. The total cost expected to be incurred under these agreements is $9.0 million, of which $3.4 million has not been recorded as of December 31, 2011. The remaining cost for these agreements is expected to be recorded by the second quarter of 2013.

We lease office space for use in our operations. The lease agreements, which expire periodically through August 2017, contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled $5.0 million in 2011, $4.9 million in 2010, and $7.5 million in 2009. The commitment for non-cancelable operating leases in future years is as follows:

(In thousands)
2012	$	12,619
2013	12,518
2014	12,313
2015	10,144
2016	4,296
Thereafter	3,006
	$	54,896

The commitment for non-cancelable operating leases in future years has not been reduced by future minimum sublease rental payments aggregating approximately $13.5 million at December 31, 2011.

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Note 21 - Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2011

Subsequent Event [Line Items]

Schedule of Subsequent Events [Table Text Block]

The following table provides the expected impact on our consolidated financial statements prepared under GAAP in the first quarter of 2012, for the Assured Transaction described in Note 1. While we expect a statutory capital benefit as a result of this transaction as discussed in Note 1, under GAAP this transaction will result in a reduction in net income, and therefore, a reduction in retained earnings.

Statement of Operations
(In millions)
Decrease in premiums written	$	(119.8	)
Decrease in net premiums earned	$	(22.2	)
Increase in change in fair value of derivative instruments—gain	0.1
Increase in policy acquisition costs	(15.7		)
Gain on sale of affiliate	9.0
Decrease in pre-tax income	(28.8		)
Balance Sheet
(In millions)
Decrease in:
Cash	$	92.3
Deferred policy acquisition costs	26.2
Accounts and notes receivable	1.1
Derivative assets	0.6
Unearned premiums	71.6
Derivative liabilities	0.9
Increase in other assets	19.0

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Note 12 - Financial Guaranty Insurance Contracts Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Financial Guaranty Insurance Contracts [Abstract]

Schedule of Insured Financial Obligations with Credit Deterioration [Table Text Block]

The following table includes information as of December 31, 2011, regarding our financial guaranty claim liabilities, segregated by the surveillance categories that we use in monitoring the risks related to these contracts:

	Surveillance Categories
($ in millions)	Performing		Special Mention		Intensified Surveillance		Case Reserve		Total
Number of policies	16		135		61		106		318
Remaining weighted-average contract period (in years)	23		18		21		25		20
Insured contractual payments outstanding:
Principal	$	58.1	$	1,080.3	$	370.8	$	358.8	$	1,868.0
Interest	12.6		624.6		198.8		184.4		1,020.4
Total	$	70.7	$	1,704.9	$	569.6	$	543.2	$	2,888.4
Gross claim liability	$	0.4	$	15.7	$	114.5	$	103.9	$	234.5
Less:
Gross potential recoveries	—		0.7		60.0		83.2		143.9
Discount, net	0.1		3.3		10.8		2.2		16.4
Net claim liability	$	0.3	$	11.7	$	43.7	$	18.5	$	74.2
Unearned premium revenue	$	0.2	$	25.3	$	7.7	$	—	$	33.2
Claim liability reported in the balance sheet	$	0.2	$	3.6	$	38.2	$	18.5	$	60.5
Reinsurance recoverables	$	—	$	—	$	—	$	—	$	—

Schedule of Premium Receivable and Unearned with Accretion Detail and Weighted Average Risk-Free Rate [Table Text Block]

The present values of premiums receivable and unearned premiums that are received on an installment basis as of December 31, 2011 and 2010 are as follows:

	December 31,
(In millions)	2011		2010
Premiums receivable	$	34.3	$	44.0
Unearned premiums	39.8		60.5

The accretion of these balances is included either in premiums written and premiums earned for premiums receivable or policy acquisition costs for commissions on our consolidated statements of operations. The amount of the accretion included in premiums written, premiums earned and policy acquisition costs for the years ended December 31, 2011 and 2010 was as follows:

	December 31,
(In millions)	2011		2010
Premiums written	$	1.2	$	1.5
Premiums earned	1.2		1.5
Policy acquisition costs	0.3		0.3

The weighted-average risk-free rate used to discount the premiums receivable and premiums to be collected was 2.6% at December 31, 2011.

Future Premiums To Be Collected On Financial Guaranty Contracts [Table Text Block]

The following table shows the nominal (non-discounted) premiums, net of commissions that are expected to be collected on financial guaranty contracts with installment premiums, included in premiums receivable as of December 31, 2011. See Note 21 for the financial impact of the Assured Transaction executed in January 2012.

(In millions)	Future Expected Premium Payments
1st quarter 2012	$	1.1
2nd quarter 2012	1.8
3rd quarter 2012	1.4
4th quarter 2012	0.7
2012	5.0
2013	3.9
2014	1.5
2015	2.9
2016	2.6
2012 - 2016	15.9
2017 - 2021	10.1
2022 - 2026	6.8
2027 - 2031	4.4
After 2031	5.9
Total	$	43.1

Rollforward of Financial Guaranty NPV of Premiums Receivable [Table Text Block]

The following table shows the rollforward of the net present value of premiums receivable as of December 31, 2011 and 2010:

	December 31,
(In millions)	2011			2010
Balance at January 1	$	44.0		$	54.4
Payments received	(5.0		)	(7.1		)
Accretion	0.9			1.3
Adjustments to installment premiums	(0.4		)	(1.5		)
Foreign exchange revaluation	0.8			(1.3		)
Recaptures/commutation	(6.0		)	(1.8		)
Balance at December 31	$	34.3		$	44.0

Adjustments to Premiums Earned Financial Guaranty Contracts [Table Text Block]

Premiums earned were affected by the following for the years ended December 31, 2011 and 2010:

	December 31,
(In millions)	2011		2010
Refundings	$	27.2	$	35.8
Recaptures/Commutations	2.8		—
Adjustments to installment premiums, gross of commissions	0.4		0.4
Unearned premium acceleration upon establishment of case reserves	3.2		1.4
Foreign exchange revaluation, gross of commissions	1.1		(1.4		)
Policy cancellations	—		2.3
Total adjustment to premiums earned	$	34.7	$	38.5

Financial Guarantee Insurance Contracts Future Premium Revenue to be Recognized [Table Text Block]

The following table shows the expected contractual premium revenue from our existing financial guaranty portfolio, assuming no prepayments or refundings of any financial guaranty obligations, as of December 31, 2011. See Note 21 for the financial impact of the Assured Transaction executed in January 2012.

(In millions)	Ending Net Unearned Premiums		Unearned Premium Amortization		Accretion		Total Premium Revenue
1st quarter 2012	$	394.4	$	9.5	$	0.3	$	9.8
2nd quarter 2012	385.5		8.9		0.3		9.2
3rd quarter 2012	376.8		8.7		0.3		9.0
4th quarter 2012	368.3		8.5		0.3		8.8
2012	368.3		35.6		1.2		36.8
2013	333.1		35.2		0.9		36.1
2014	300.8		32.3		0.9		33.2
2015	271.9		28.9		0.8		29.7
2016	245.7		26.2		0.7		26.9
2012 – 2016	245.7		158.2		4.5		162.7
2017 – 2021	137.8		107.9		2.9		110.8
2022 – 2026	66.4		71.4		1.9		73.3
2027 – 2031	27.0		39.4		1.2		40.6
After 2031	—		27.0		1.3		28.3
Total	$	—	$	403.9	$	11.8	$	415.7

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table shows the significant components of changes in our financial guaranty claim liability for the years ended December 31, 2011, 2010 and 2009, excluding $2.5 million, $4.3 million and $6.6 million, respectively, related to our trade credit reinsurance and surety business, which is excluded from the accounting standard regarding accounting for financial guaranty insurance contracts by insurance enterprises.

	Year Ended December 31,
(In millions)	2011			2010			2009
Claim liability at January 1	$	67.4		$	121.8		$	211.5
Incurred losses and LAE:
Increase/(decrease) in gross claim liability	68.1			86.2			(6.0		)
Increase in gross potential recoveries	(76.1		)	(74.2		)	(42.6		)
Decrease/(increase) in discount	7.5			(1.9		)	69.6
Decrease/(increase) in unearned premiums	4.6			(1.1		)	20.7
Incurred losses and LAE	4.1			9.0			41.7
Paid losses and LAE:
Current year	—			(1.6		)	(25.4		)
Prior years	(11.0		)	(61.8		)	(106.0		)
Paid losses and LAE	(11.0		)	(63.4		)	(131.4		)
Claim liability at December 31	$	60.5		$	67.4		$	121.8
Components of incurred losses and LAE:
Claim liability established in current period	$	2.2		$	1.7		$	54.1
Changes in existing claim liabilities	1.9			7.3			(12.4		)
Total incurred losses and LAE	$	4.1		$	9.0		$	41.7
Components of decrease/(increase) in discount:
Decrease/(increase) in discount related to claim liabilities established in current period	$	0.2		$	(6.3	)	$	(4.7	)
Decrease in discount related to existing claim liabilities	7.3			4.4			74.3
Total decrease/(increase) in discount	$	7.5		$	(1.9	)	$	69.6

Schedule or Description of Weighted Average Discount Rate [Table Text Block]

The weighted-average risk-free rates used to discount the gross claim liability and gross potential recoveries were as follows, as of the dates indicated:

December 31, 2011	2.80	%
December 31, 2010	3.69	%
December 31, 2009	3.81	%
December 31, 2008	2.53	%

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Note 7 - Investments Investments In Any Person And Its Affiliates That Exceed 10% of Total Stockholders' Equity (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Investment Holdings [Line Items]
Trading Securities	$ 4,211,059,000	$ 4,562,821,000
Short-term Investments	1,261,703,000	1,537,498,000
Total	5,783,559,000	6,628,883,000
BlackRock Liquidity Funds T-Fund Money Market [Member] [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
Investment Holdings [Line Items]
Trading Securities	0
Short-term Investments	173,378,000
Total	173,378,000
Fidelity Treasury Only Money Market [Member] [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
Investment Holdings [Line Items]
Trading Securities	0
Short-term Investments	167,631,000
Total	167,631,000
Federated Treasury Only Obligations Money Market [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
Investment Holdings [Line Items]
Trading Securities	0
Short-term Investments	139,000,000
Total	139,000,000
State of Illinois [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
Investment Holdings [Line Items]
Trading Securities	129,672,000
Short-term Investments	0
Total	129,672,000
Invesco-AIM Advisors STIT Treasury PTF Money Market [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
Investment Holdings [Line Items]
Trading Securities	0
Short-term Investments	129,000,000
Total	129,000,000
Total Investments in Any Person and Its Affiliates That Exceed 10% of Total Stockholders Equity [Member] | Investments in Any Person and Its Affiliates That Exceed 10 Percent of Total Stockholders Equity [Member]
Investment Holdings [Line Items]
Trading Securities	129,672,000
Short-term Investments	609,009,000
Total	$ 738,681,000

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Note 14 - Income Taxes Reconciliation of Taxes from Statutory Rate to Provision (Benefit) for Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reconciliation from Statutory Rate to Provision (Benefit) for Income Taxes [Line Items]
Provision (benefit) for income taxes computed at the statutory tax rate	$ 128,979	$ (552,887)	$ (84,798)
Tax-exempt municipal bond interest and dividends received deduction (net of proration)	(5,237)	(15,592)	(31,539)
Foreign tax (benefit) provision	(13,496)	(10,397)	(4,766)
State Tax Benefit	(6,224)	(15,692)	(7,353)
Income Tax Reconciliation, Tax Contingencies	17,860	(25,915)	28,192
Valuation allowance	(50,582)	844,975	6,882
Other, net	(4,938)	1,697	(1,019)
Provision (benefit) for income taxes	$ 66,362	$ 226,189	$ (94,401)

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Note 7 - Investments Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Total Debt And Equity Securities [Table Text Block]

Our held to maturity and available for sale securities within our investment portfolio consisted of the following as of the dates indicated:

	December 31, 2011
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities held to maturity:
Bonds and notes:
State and municipal obligations	$	2,640	$	2,748	$	115	$	7
	$	2,640	$	2,748	$	115	$	7
Fixed-maturities available for sale:
U.S. government and agency securities	$	10,931	$	13,630	$	2,699	$	—
State and municipal obligations	87,083		82,692		485		4,876
Corporate bonds and notes	17,267		16,610		390		1,047
RMBS	1,308		1,360		53		1
CMBS	1,660		1,669		25		16
Other ABS	1,019		1,177		158		—
Other investments	1,489		1,595		106		—
	$	120,757	$	118,733	$	3,916	$	5,940
Equity securities available for sale (1)	$	114,425	$	128,424	$	14,868	$	869
Total debt and equity securities	$	237,822	$	249,905	$	18,899	$	6,816

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($116.0 million fair value at December 31, 2011) and various preferred and common stocks invested across numerous companies and industries ($12.4 million fair value at December 31, 2011).

	December 31, 2010
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities held to maturity:
Bonds and notes:
State and municipal obligations	$	10,773	$	11,416	$	662	$	19
	$	10,773	$	11,416	$	662	$	19
Fixed-maturities available for sale:
U.S. government and agency securities	$	25,120	$	27,742	$	2,622	$	—
State and municipal obligations	269,185		199,187		272		70,270
Corporate bonds and notes	26,748		26,206		334		876
RMBS	11,952		12,538		600		14
CMBS	3,279		3,310		70		39
Other ABS	2,104		2,226		127		5
Other investments	2,407		2,590		183		—
	$	340,795	$	273,799	$	4,208	$	71,204
Equity securities available for sale (1)	$	160,242	$	184,365	$	24,188	$	65
Total debt and equity securities	$	511,810	$	469,580	$	29,058	$	71,288

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($168.4 million fair value at December 31, 2010) and various preferred and common stocks invested across numerous companies and industries ($16.0 million fair value at December 31, 2010).

Trading Securities (and Certain Trading Assets) [Table Text Block]

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:

	December 31,
(In thousands)	2011		2010
Trading securities:
U.S. government and agency securities	$	710,006	$	703,636
State and municipal obligations	964,748		983,680
Corporate bonds and notes	683,864		1,034,206
RMBS	928,887		953,416
CMBS	224,180		193,244
CDO	5,467		2,406
Other ABS	98,729		132,149
Foreign government securities (1)	102,851		83,508
Hybrid securities	346,338		318,940
Equity securities	140,764		155,636
Other investments	5,225		2,000
Total	$	4,211,059	$	4,562,821

______________________

(1) As of December 31, 2011, nearly all of our foreign government securities were rated A or higher by a Nationally Recognized Statistical Rating Organization ("NRSRO"). As of December 31, 2011, our trading portfolio included no securities of five Eurozone countries (Portugal, Ireland, Italy, Greece and Spain, collectively, the "Stressed Eurozone Countries"), whose sovereign obligations have been under stress due to economic uncertainty, potential restructuring and ratings downgrades, or securities of any other countries under similar stress. As of December 31, 2010, our trading portfolio exposure to the Stressed Eurozone Countries consisted of $15.5 million of Italian securities. Our largest concentrations of foreign government securities as of December 31, 2011, were Germany ($42.6 million fair value) and Japan ($28.0 million fair value).

Investment Income [Table Text Block]

Net investment income consisted of:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Investment income:
Fixed-maturities	$	155,183		$	174,204		$	208,755
Equity securities	11,559			7,623			6,973
Short-term investments	611			1,576			4,289
Other	4,017			2,756			1,466
Gross investment income	$	171,370		$	186,159		$	221,483
Investment expenses	(7,850		)	(7,399		)	(7,293		)
Net investment income	$	163,520		$	178,760		$	214,190

Gain (Loss) on Investments [Table Text Block]

Net realized and unrealized gains (losses) on investments consisted of:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Net realized gains (losses):
Fixed-maturities held to maturity	$	491		$	295		$	133
Fixed-maturities available for sale	(52,473		)	(7,661		)	91,577
Equities available for sale	6,228			2,001			764
Trading securities	121,393			66,351			107,479
Short-term investments	(1		)	(67		)	14
Other invested assets	—			388			822
Net realized gains (losses) on investments	75,638			61,307			200,789
Unrealized gains on trading securities	126,539			78,637			56,352
Total gains on investments	$	202,177		$	139,944		$	257,141

Available-for-sale Securities, Proceeds and Gains (Losses) [Table Text Block]

The sources of our proceeds and related investment gains (losses) on our available for sale securities are as follows:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Fixed-maturities available for sale:
Proceeds received from redemptions	$	32,214		$	50,846		$	199,551
Proceeds received from sales	136,217			1,218,460			2,463,626
Gross investment gains from sales and redemptions	1,577			23,363			94,974
Gross investment losses from sales and redemptions	(54,050		)	(31,024		)	(3,397		)
Equities available for sale:
Proceeds received from sales	52,014			15,033			33,807
Gross investment gains from sales	6,238			2,006			1,077
Gross investment losses from sales	(10		)	(5		)	(313		)

Unrealized Gain (Loss) on Investments [Table Text Block]

The change in unrealized gains (losses) recorded in accumulated other comprehensive loss consisted of the following:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Fixed-maturities:
Unrealized holding gains arising during the period, net of tax	$	11,328		$	23,806		$	151,001
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax	(34,697		)	(4,980		)	59,392
Net unrealized gains on investments, net of tax	$	46,025		$	28,786		$	91,609
Equities:
Unrealized holding (losses) gains arising during the period, net of tax	$	(3,928	)	$	15,080		$	27,335
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax	2,769			1,242			(5,395		)
Net unrealized (losses) gains on investments, net of tax	$	(6,697	)	$	13,838		$	32,730

Schedule Of Unrealized Losses [Table Text Block]

The following tables show the gross unrealized losses and fair value of our available for sale and held to maturity investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:

December 31, 2011: ($ in thousands)Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	1	$	525	$	17	9	$	72,653	$	4,866	10	$	73,178	$	4,883
Corporate bonds and notes	6	2,457		97		18	8,902		950		24	11,359		1,047
RMBS	2	354		1		—	—		—		2	354		1
CMBS	—	—		—		1	527		16		1	527		16
Equity securities	1	9,284		869		—	—		—		1	9,284		869
Total	10	$	12,620	$	984	28	$	82,082	$	5,832	38	$	94,702	$	6,816

December 31, 2010: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	6	$	3,507	$	110	26	$	189,194	$	70,179	32	$	192,701	$	70,289
Corporate bonds and notes	31	16,364		852		2	604		24		33	16,968		876
RMBS	1	1,436		14		—	—		—		1	1,436		14
CMBS	3	1,885		39		—	—		—		3	1,885		39
Other ABS	2	802		5		—	—		—		2	802		5
Equity securities	2	205		65		—	—		—		2	205		65
Total	45	$	24,199	$	1,085	28	$	189,798	$	70,203	73	$	213,997	$	71,288

Investments Classified by Contractual Maturity Date [Table Text Block]

The contractual maturities of fixed-maturity investments are as follows:

	December 31, 2011
	Held to Maturity				Available for Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less (1)	$	1,912	$	2,022	$	1,944	$	1,834
Due after one year through five years (1)	424		428		16,594		17,135
Due after five years through ten years (1)	—		—		5,678		5,326
Due after ten years (1)	304		298		92,554		90,232
RMBS (2)	—		—		1,308		1,360
CMBS (2)	—		—		1,660		1,669
Other ABS (2)	—		—		1,019		1,177
Total	$	2,640	$	2,748	$	120,757	$	118,733

______________________

(1) Actual maturities may differ as a result of calls before scheduled maturity.

(2) RMBS, CMBS and Other ABS are shown separately, as they are not due at a single maturity date.

Investment Holdings, Schedule of Investments [Table Text Block]

At December 31, 2011, investments in any person and its affiliates that exceeded 10% of total stockholders' equity were as follows (in thousands):

(In thousands)	Year Ended December 31, 2011
Name	Trading Securities		Short-Term Investments		Total
BlackRock Liquidity Funds T-Fund Money Market	$	—	$	173,378	$	173,378
Fidelity Institutional Treasury Only Portfolio	—		167,631		167,631
Federated Treasury Obligations Fund	—		139,000		139,000
State of Illinois	129,672		—		129,672
Invesco-AIM Advisors STIT Treasury PTF Money Market	—		129,000		129,000
Total	$	129,672	$	609,009	$	738,681

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Note 1 - Description of Business and Recent Developments Capital and Liquidity (Details) (USD $)	1 Months Ended	12 Months Ended						48 Months Ended	12 Months Ended		12 Months Ended				12 Months Ended							12 Months Ended				1 Months Ended			3 Months Ended		2 Months Ended	3 Months Ended		12 Months Ended			12 Months Ended					12 Months Ended			12 Months Ended
	Jan. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Radian Guaranty [Member]	Dec. 31, 2011 CMAC Of Texas [Member]	Dec. 31, 2011 Radian Asset Assurance [Member]	Dec. 31, 2011 Radian Asset Assurance [Member]	Dec. 31, 2011 Parent Company	Sep. 30, 2003 Parent Company	Dec. 31, 2011 Subsidiary of Common Parent [Member]	Dec. 31, 2011 Five Point Three Seven Five Percent Senior Notes due 2015 [Member]	Jun. 01, 2005 Five Point Three Seven Five Percent Senior Notes due 2015 [Member]	Feb. 15, 2013 Five Point Three Seven Five Percent Senior Notes due 2015 [Member] Parent Company	Dec. 31, 2010 Three Percent Convertible Senior Notes due 2017 [Member]	Dec. 31, 2011 Three Percent Convertible Senior Notes due 2017 [Member]	Nov. 01, 2010 Three Percent Convertible Senior Notes due 2017 [Member]	Dec. 31, 2011 Five Point Six Two Five Percent Senior Notes due 2013 [Member]	Feb. 01, 2003 Five Point Six Two Five Percent Senior Notes due 2013 [Member]	Feb. 15, 2013 Five Point Six Two Five Percent Senior Notes due 2013 [Member] Parent Company	Mar. 31, 2012 Five Point Six Two Five Percent Senior Notes due 2013 [Member] Parent Company	Dec. 31, 2010 Seven Point Seven Five Percent Debentures due 2011 [Member]	Dec. 31, 2009 Seven Point Seven Five Percent Debentures due 2011 [Member]	Dec. 31, 2011 Seven Point Seven Five Percent Debentures due 2011 [Member]	May 01, 2001 Seven Point Seven Five Percent Debentures due 2011 [Member]	Jan. 24, 2012 January 2012 Assured Guaranty Reinsurance Commutation [Member]	Jan. 24, 2012 January 2012 Assured Guaranty Ceded Public Finance Transaction [Member]	Jan. 24, 2012 January 2012 Assured Guaranty Transaction [Member]	Mar. 31, 2012 January 2012 Assured Guaranty Transaction [Member]	Feb. 29, 2012 January 2012 Assured Guaranty Transaction [Member]	Feb. 29, 2012 February 2012 CDO Termination [Member]	Dec. 31, 2011 CDO Of ABS Interest Shortfall [Member] Radian Asset Assurance [Member]	Dec. 31, 2011 Freddie Mac Approval [Member] Radian Guaranty [Member]	Dec. 31, 2011 Scenario, Forecast [Member]	Dec. 31, 2012 Scenario, Forecast [Member] Parent Company	Dec. 31, 2011 Scenario, Forecast [Member] Parent Company	Dec. 31, 2011 Scenario, Forecast [Member] Corporate Expenses [Member]	Dec. 31, 2011 Scenario, Forecast [Member] Corporate Expenses Due For The Next 12 Months [Member]	Dec. 31, 2011 Scenario, Forecast [Member] Performance Based Corporate Expenses [Member]	Mar. 31, 2012 Minimum [Member] February 2012 Quota Share Reinsurance Agreement [Member] Radian Guaranty [Member]	Dec. 31, 2011 Minimum [Member] Freddie Mac Approval [Member]	Dec. 31, 2011 Required Upon RBC Breach Per Freddie Mac Approval [Member] Freddie Mac Approval [Member]	Mar. 31, 2012 Maximum [Member] February 2012 Quota Share Reinsurance Agreement [Member] Radian Guaranty [Member]	Dec. 31, 2011 Maximum [Member] Freddie Mac Approval [Member]	Dec. 31, 2011 Requirement Per Fannie Mae Approval [Member] Fannie Mae Approval [Member]	Dec. 31, 2011 Required Upon RBC Breach Per Fannie Mae Approval [Member] Fannie Mae Approval [Member]
Risk to Capital Line Items [Line Items]
Unrestricted Cash And Liquid Investments Including Activity After The Balance Sheet Date									$ 482,800,000
Related Party Transaction, Due from (to) Related Party									(100,000,000)
Debt Instrument, Face Amount									950,000,000				250,000,000	250,000,000	450,000,000	450,000,000	450,000,000		250,000,000	250,000,000					250,000,000
Percentage of New Insurance Written Attributable To States With Statutory Or Regulatory Risk Based Capital Requirements					50.50%
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement		16
States Which Have A Risk To Capital Ratio Limit of 25 To 1		11
Risk To Capital Ratio, Regulatory Maximum		25.0
Risk To Capital Ratio					21.5																																							20.00
Number Of States That Have Granted Waivers To Risk Based Capital Requirements		6
Number Of States From Which We Are Pursuing Risk Based Capital Requirement Waivers		5
Consolidation, Wholly Owned Subsidiary, Parent Ownershi Interest Changes, Transfer of Interest by Parent					17,000,000
Payments for (Proceeds from) Businesses and Interest in Affiliates					6,000,000
Common Stock, Dividends, Per Share																																				$ 0.0025
Common Stock, Shares, Outstanding		133,199,159	133,049,213																																133,199,159
Dividends Payable, Amount																																			1,300,000
Contingency Reserve Release								215,500,000
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries								329,800,000
Statutory Incurred Losses							99,200,000
Gain on sale of affiliate		0	34,815,000	0																									9,000,000
Number Of Our Credit Derivative Counterparties That Excercised Their Termination Rights																															3
Number of Corporate CDOs Terminated																															14
Reduction In Net Par Outstanding																										13,800,000,000	1,800,000,000				5,800,000,000
Number Of States In Which New York Is Licensed To Conduct Business																														37
New Insurance Written	2,000,000,000
First Lien Primary Mortgage Insurance Risk In Force		32,800,000,000																																						1,200,000,000			1,500,000,000
Percentage Reduction On Net Par Outstanding																												22.50%
(Increase) Decrease To Statutory Capital And Surplus																												(100,000,000)				91,800,000
Net par outstanding on CDO of ABS transaction																																450,600,000
Interest Shortfall On CDO Of ABS																																36,000
Net Cash Received (Paid) For Commutations, Terminations And Recaptures		92,599,000	(85,657,000)	369,926,000
Debt Instrument, Interest Rate, Stated Percentage												5.375%	5.375%			3.00%	3.00%	5.625%	5.625%	5.625%				7.75%	7.75%
Amount Approved For Repurchase Of Long Term Debt																					100,000,000
Principal Amount of Note Used as Basis for Determining Tender Cap Range of Purchase																					1,000
Income Taxes, Parent Refund To Subsidiary					77,000,000						7,000,000
Committed Preferred Custodial Trust Securities										150,000,000
Extinguishment of Debt, Amount																						31,900,000	57,700,000
Amount Per Dollar of Principal of Debt Repurchased																						$ 0.92	$ 0.79
Gains (Losses) on Extinguishment of Debt																						2,500,000	12,000,000
Proceeds from Issuance of Common Stock		0	525,887,000	0
Proceeds from Issuance of Debt		0	391,310,000	0											391,300,000
Capital Contributions					30,000,000	20,600,000			50,600,000																																	50,000,000			100,000,000	50,000,000
Capital Contribution Receivable					100,000,000
Other Cost and Expense, Operating		175,810,000	191,942,000	203,770,000																														59,600,000
Interest Expense, Long-term Debt																																		41,000,000
Proceeds from Contributions from Affiliates																																					30,700,000	16,700,000	15,800,000
Liquid Assets Minimum Threshold Per Freddie Mac Provision																																									700,000,000
Unrestricted Cash and Liquid Investments																																	$ 1,200,000,000

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Note 7 - Investments Investments Trading Securities (Details) (USD $)	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	$ 4,211,059,000		$ 4,562,821,000
Trading Securities, Change in Unrealized Holding Gain (Loss)	126,539,000		78,637,000		56,352,000
Securities (Assets)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities, Change in Unrealized Holding Gain (Loss)	112,100,000		27,000,000
US government and agency securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	710,006,000		703,636,000
State and municipal obligations
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	964,748,000		983,680,000
Corporate bonds and notes
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	683,864,000		1,034,206,000
RMBS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	928,887,000		953,416,000
CMBS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	224,180,000		193,244,000
CDO
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	5,467,000		2,406,000
Other ABS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	98,729,000		132,149,000
Foreign government securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	102,851,000	[1]	83,508,000	[1]
Portugal, Ireland, Italy, Greece and Spain Government Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	0
Number Of Stressed Eurozone Countries	5
Italian Government Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities			15,500,000
German foreign government securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	42,600,000
Japanese foreign government securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	28,000,000
Convertible Debt Securities [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	346,338,000		318,940,000
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	140,764,000		155,636,000
Other investments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	$ 5,225,000		$ 2,000,000

[1] As of December 31, 2011, nearly all of our foreign government securities were rated A or higher by a Nationally Recognized Statistical Rating Organization ("NRSRO"). As of December 31, 2011, our trading portfolio included no securities of five Eurozone countries (Portugal, Ireland, Italy, Greece and Spain, collectively, the "Stressed Eurozone Countries"), whose sovereign obligations have been under stress due to economic uncertainty, potential restructuring and ratings downgrades, or securities of any other countries under similar stress. As of December 31, 2010, our trading portfolio exposure to the Stressed Eurozone Countries consisted of $15.5 million of Italian securities. Our largest concentrations of foreign government securities as of December 31, 2011, were Germany ($42.6 million fair value) and Japan ($28.0 million fair value).

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Note 16 - Share-Based and Other Compensation Plans (Non-Qualified Stock Options) (Details) (2008 Equity Plan [Member], USD $)	12 Months Ended
	Dec. 31, 2011 years		Dec. 31, 2010 years		Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Available for grant	3,271,288
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary	50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Fourth Anniversary	50.00%
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, Beginning of Period, Number of Shares	3,227,411
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share	$ 28.63
Granted, Number of Shares	667,586				0
Granted, Weighted Average Exercise Price Per Share	$ 4.05
Exercised, Number of Shares	0				0
Exercised, Weighted Average Exercise Price Per Share	$ 0.00
Forfeited, Number of Shares	(77,347)
Forfeited, Weighted Average Exercise Price Per Share	$ 6.17
Expired, Number of Shares	(344,888)
Expired, Weighted Average Exercise Price Per Share	$ 33.00
Outstanding, End of Period, Number of Shares	3,472,762		3,227,411
Outstanding, Beginning of Period, Weighted Average Exercise Price Per Share	$ 23.97		$ 28.63
Exercisable, Number of Shares	2,410,123
Exercisable, Weighted Average Exercise Price Per Share	$ 32.33
Available for grant	3,271,288
Weighted average fair value per share of stock options granted	$ 3.33		$ 8.70
Total intrinsic value of options outstanding	$ 0		$ 2,500,000		$ 2,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract]
Number of options vested	2,410,123
Fair value of options vested during the year	300,000
Aggregate intrinsic value (excess market price over exercise price)	0
Weighted-average remaining contractual term of options (in years)	2
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life (years)	6.00	[1]	6.00	[1]
Risk-free interest rate	1.88%	[2]	2.85%	[2]
Volatility	114.51%	[3]	110.83%	[3]
Dividend yield	0.28%		0.10%
Vesting period (in years)	4 years
Share-based Compensation Arragements, Windfall Tax Benefit, Threshold Amount	$ 20,200,000

[1] In 2011 and 2010, the expected life of stock options granted was estimated to be less than the full term of the options awarded. The expected life is estimated using historical data.

[2] The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant.

[3] Volatility determined at the date of grant using historical share price volatility and expected life of each award.

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Note 5 - Fair Value of Financial Instruments Rollforward of Level III Assets and Liabilities Fair Value Disclosure (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Fair Value Level III Assets and Liabilities [Roll Forward]
Total Level III Assets	4.90%
Total Level III Liabilities	100.00%
Fair Value, Measurements, Recurring
Fair Value Level III Assets and Liabilities [Roll Forward]
Fair Value, Transfers Between Level 1 And Level 2, Amount	$ 0
Derivative liabilities net [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Liabilities	709,100,000	214,900,000
VIE Consolidation, Liabilities		51,800,000	[1]
Realized and Unrealized Gains (Losses) Included in Earnings Level III Liabilities	(629,000,000)	551,200,000	[2]
Purchases Level III Liabilities	0	0
Sales Level III Liabilities	0	0
Issuances Level III Liabilities	0	0
Settlements Level III Liabilities	30,500,000	(5,200,000)
Transfers Into (Out of) Level III Liabilities	0	0	[3]
Ending Balance Level III Liabilities	110,600,000	709,100,000
Unrealized Gains (Losses) Recorded in Earnings on Level III Liabilities Still Held	579,100,000	(588,100,000)
VIE debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Liabilities	520,100,000	296,100,000
VIE Consolidation, Liabilities		253,500,000	[1]
Realized and Unrealized Gains (Losses) Included in Earnings Level III Liabilities	(138,500,000)	213,500,000	[2]
Purchases Level III Liabilities	0	0
Sales Level III Liabilities	0	0
Issuances Level III Liabilities	0	0
Settlements Level III Liabilities	(153,400,000)	(243,000,000)	[4]
Transfers Into (Out of) Level III Liabilities	0	0	[3]
Ending Balance Level III Liabilities	228,200,000	520,100,000
Unrealized Gains (Losses) Recorded in Earnings on Level III Liabilities Still Held	158,500,000	(165,700,000)
VIE debt | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Financial Guaranty Segment
Fair Value Level III Assets and Liabilities [Roll Forward]
Settlements Level III Liabilities		36,300,000	[4]
Total Level III liabilities net [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Liabilities	1,229,200,000	511,000,000
VIE Consolidation, Liabilities		201,700,000	[1]
Realized and Unrealized Gains (Losses) Included in Earnings Level III Liabilities	(767,500,000)	764,700,000	[2]
Purchases Level III Liabilities	0	0
Sales Level III Liabilities	0	0
Issuances Level III Liabilities	0	0
Settlements Level III Liabilities	(122,900,000)	(248,200,000)
Transfers Into (Out of) Level III Liabilities	0	0	[3]
Ending Balance Level III Liabilities	338,800,000	1,229,200,000
Committed Preferred Securities CPS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Settlements Level III Liabilities		31,200,000	[4]
Committed Preferred Securities CPS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Consolidated VIEs [Member]
Fair Value Level III Assets and Liabilities [Roll Forward]
Settlements Level III Liabilities		11,100,000	[4]
NIMS VIEs [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Settlements Level III Liabilities		186,600,000	[4]
State and municipal obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	23,200,000	24,400,000
VIE Consolidation, Assets		0	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	1,200,000	100,000	[2]
Purchases Level III Assets	39,100,000	1,400,000
Sales Level III Assets	600,000	0
Issuances Level III Assets	0	0
Settlements Level III Assets	400,000	2,700,000
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	62,500,000	23,200,000
RMBS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	52,500,000	0
VIE Consolidation, Assets		44,300,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	(3,100,000)	19,600,000	[2]
Purchases Level III Assets	0	0
Sales Level III Assets	0	0
Issuances Level III Assets	0	0
Settlements Level III Assets	3,900,000	11,400,000
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	45,500,000	52,500,000
CMBS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	23,000,000	0
VIE Consolidation, Assets		23,800,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	12,400,000	(800,000)	[2]
Purchases Level III Assets	0	0
Sales Level III Assets	0	0
Issuances Level III Assets	0	0
Settlements Level III Assets	0	0
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	35,400,000	23,000,000
CDO | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	2,400,000	0
VIE Consolidation, Assets		3,800,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	2,700,000	(1,800,000)	[2]
Purchases Level III Assets	0	0
Sales Level III Assets	0	(400,000)
Issuances Level III Assets	0	0
Settlements Level III Assets	(400,000)	0
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	5,500,000	2,400,000
Other ABS | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	3,300,000	0
VIE Consolidation, Assets		3,500,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	(400,000)	(200,000)	[2]
Purchases Level III Assets	0	0
Sales Level III Assets	0	0
Issuances Level III Assets	0	0
Settlements Level III Assets	0	0
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	2,900,000	3,300,000
Hybrid securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	0	600,000
VIE Consolidation, Assets		0	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	(100,000)	0	[2]
Purchases Level III Assets	700,000	0
Sales Level III Assets	0	0
Issuances Level III Assets	0	0
Settlements Level III Assets	0	0
Transfers Into (Out of) Level III Assets	4,200,000	(600,000)	[3]
Ending Balance Level III Assets	4,800,000	0
Equity securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	2,900,000	1,700,000
VIE Consolidation, Assets		0	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	(1,200,000)	200,000	[2]
Purchases Level III Assets	3,700,000	400,000
Sales Level III Assets	1,000,000	100,000
Issuances Level III Assets	0	0
Settlements Level III Assets	0	0
Transfers Into (Out of) Level III Assets	(3,600,000)	700,000	[3]
Ending Balance Level III Assets	800,000	2,900,000
Other investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	4,600,000	3,800,000
VIE Consolidation, Assets		3,700,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	3,200,000	(1,600,000)	[2]
Purchases Level III Assets	0	0
Sales Level III Assets	700,000	1,000,000
Issuances Level III Assets	0	(300,000)
Settlements Level III Assets	300,000	0
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	6,800,000	4,600,000
Investments | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	111,900,000	30,500,000
VIE Consolidation, Assets		79,100,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	14,700,000	15,500,000	[2]
Purchases Level III Assets	43,500,000	1,800,000
Sales Level III Assets	2,300,000	700,000
Issuances Level III Assets	0	(300,000)
Settlements Level III Assets	4,200,000	14,100,000
Transfers Into (Out of) Level III Assets	600,000	100,000	[3]
Ending Balance Level III Assets	164,200,000	111,900,000
Unrealized Gains (Losses) Recorded in Earnings on Level III Assets Still Held	12,000,000	12,600,000
NIMS and CPS Derivative Assets [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets		44,700,000
VIE Consolidation, Assets		0	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings		(7,700,000)	[2]
Purchases Level III Assets		1,300,000
Sales Level III Assets		100,000
Issuances Level III Assets		(100,000)
Settlements Level III Assets		26,400,000	[5]
Transfers Into (Out of) Level III Assets		0	[3]
Ending Balance Level III Assets		11,700,000
NIMS derivative assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	11,700,000
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	(2,200,000)
Purchases Level III Assets	300,000
Sales Level III Assets	0
Issuances Level III Assets	0
Settlements Level III Assets	7,700,000
Transfers Into (Out of) Level III Assets	(500,000)
Ending Balance Level III Assets	1,600,000	11,700,000
Unrealized Gains (Losses) Recorded in Earnings on Level III Assets Still Held		(1,400,000)
NIMS and CPS Derivative Assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Settlements Level III Assets		27,100,000	[5]
Other assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	109,700,000	0
VIE Consolidation, Assets		119,700,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	21,500,000	18,300,000	[2]
Purchases Level III Assets	0	0
Sales Level III Assets	0	0
Issuances Level III Assets	0	0
Settlements Level III Assets	27,200,000	28,300,000
Transfers Into (Out of) Level III Assets	0	0	[3]
Ending Balance Level III Assets	104,000,000	109,700,000
Unrealized Gains (Losses) Recorded in Earnings on Level III Assets Still Held	9,400,000	4,000,000
Total Level III Assets | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Level III Assets and Liabilities [Roll Forward]
Beginning Balance Level III Assets	233,300,000	75,200,000
VIE Consolidation, Assets		198,800,000	[1]
Realized and Unrealized Gains (Losses) Level III Assets Included in Earnings	34,000,000	26,100,000	[2]
Purchases Level III Assets	43,800,000	3,100,000
Sales Level III Assets	2,300,000	800,000
Issuances Level III Assets	0	(400,000)
Settlements Level III Assets	39,100,000	68,800,000
Transfers Into (Out of) Level III Assets	100,000	100,000	[3]
Ending Balance Level III Assets	$ 269,800,000	$ 233,300,000
Total Level III Assets	4.90%	3.70%
Total Level III Liabilities	100.00%	100.00%

[1] Represents the impact of our adoption of the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

[2] Includes unrealized gains (losses) relating to assets and liabilities still held as of December 31, 2010, as follows: $12.6 million for investments, $(1.4) million for NIMS derivative assets, $4.0 million for other assets, $(588.1) million for derivative liabilities, and $(165.7) million for VIE debt.

[3] Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

[4] Includes impact of consolidation of VIE from CPS Trust I in the amount of $11.1 million. Offsetting this increase was $186.6 million related to NIMS purchases, $36.3 million related to financial guaranty VIE debt paydowns, and $31.2 million for CPS VIE debt purchases.

[5] Includes impact of consolidation of VIE from CPS Trust I as of June 30, 2010, in the amount of $27.1 million.

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Note 18 - Commitments and Contingencies Schedule of Commitment for Non-Cancellable Operating Leases in Future Years (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Commitment for Non-Cancellable Operating Leases Future Years [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

The commitment for non-cancelable operating leases in future years is as follows:

(In thousands)
2012	$	12,619
2013	12,518
2014	12,313
2015	10,144
2016	4,296
Thereafter	3,006
	$	54,896

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Note 2 - Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Significant Accounting Policies

Basis of Presentation

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of all wholly-owned subsidiaries. Companies in which we, or one of our subsidiaries, exercises significant influence (generally ownership interests ranging from 20% to 50%), are accounted for in accordance with the equity method of accounting. VIEs where we are the primary beneficiary are consolidated, as described in Note 6. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated.

Certain prior period balances have been reclassified to conform to the current period presentation. We have reflected in Note 5 the additional disclosures required by the accounting standard update of fair value measurements, including the disclosures that were effective January 1, 2011. The 2010 information has been updated to be consistent with the 2011 disclosure.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially.

Reserve for Losses and LAE

We establish reserves to provide for losses and LAE and the estimated costs of settling claims in both our mortgage insurance and financial guaranty segments, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, it does not provide any other specific guidance. Therefore, because of the lack of specific guidance, we establish reserves for mortgage insurance using the guidance contained in this standard, supplemented with other accounting guidance as described below.

Estimating the loss reserves in both our mortgage insurance and financial guaranty business segments involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss. The models, assumptions and estimates we use to establish loss reserves may not prove to be accurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty such as currently exists. As such, we cannot be certain that our established reserves will be adequate to cover ultimate losses on incurred defaults.

Commutations, recaptures and other negotiated terminations of our insured risks in both our mortgage insurance and financial guaranty segments provide us with an opportunity to exit exposures to entire policies with insureds and reinsureds for an agreed upon payment, or payments, often at a discount to the previously estimated ultimate liability. As a result of exiting all exposures to such policies, all reserves for losses and LAE and other balances relating to the insured or reinsured policy are eliminated. Upon completion of a commutation, recapture or other negotiated termination, all such related balances, including deferred policy acquisition costs and unearned premiums, are reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations, recaptures, or other negotiated terminations, which may result in differences in the accounting between transactions, or between our statutory financial statements and financial statements presented on a GAAP basis.

Mortgage Insurance

In the mortgage insurance segment, reserves for losses are established upon receipt of notification by servicers that a borrower has missed two monthly payments. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history and use models, based on a variety of loan characteristics, including the status of the loan as reported by its servicer and the type of loan product to determine the likelihood that a default will reach claim status. Our process includes forecasting the impact of our loss mitigation efforts in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation and other items that may give rise to insurance rescissions and claim denials, to help determine the default to claim rate. Lastly, we project the amount that we will pay if a default becomes a claim (referred to as "claim severity"). Based on these estimates, we arrive at our estimate of loss reserves at a given point in time.

The default and claim cycle in our mortgage insurance business begins with our receipt of a default notice from the servicer. For financial statement reporting and internal tracking purposes, we do not consider a loan to be in default until the borrower has missed two monthly payments.

With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss reserves are increased as defaulted loans age, because they are considered to be closer to foreclosure and more likely to result in a claim payment. In the past, as the default proceeded towards foreclosure, there was generally more certainty around these estimates. However, in light of existing foreclosure backlogs and efforts to increase loan modifications among defaulted borrowers, significantly more uncertainty remains regarding current estimates with respect to the later stage defaults than was historically typical. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. If a default cures, the reserve for that loan is removed from the reserve for losses and LAE.

We also establish reserves for defaults that we estimate have been incurred but have not been reported ("IBNR") to us on a timely basis by the servicer, and for defaults related to previously rescinded policies and denied claims which are likely to be reinstated (in the case of previously rescinded policies) or resubmitted (in the case of previously denied claims). Our estimates of amounts related to reinstatements and resubmissions are included in IBNR. Due to the period of time (generally up to 90 days) that we give the insured to rebut our decision to rescind coverage before we consider a policy to be rescinded and removed from our default inventory, we currently expect only a limited percentage of policies that were rescinded to ultimately be reinstated. We currently expect a greater percentage of claims that were denied to ultimately be resubmitted as a perfected claim and paid. Most often, a claim denial is the result of the servicer's inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policy, our insureds have up to one year after foreclosure to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary.

We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. For example, for those defaults in which we are in a second loss position, we initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a given structured transaction is greater than the reserve amount for the defaults contained within the transaction, we do not establish a reserve for the defaults, or if appropriate, we record only a partial reserve. We do not establish loss reserves for expected future claims on insured mortgages that are not in default. See "Reserve for Premium Deficiency" below for an exception to this general principle.

For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes used to define the groups include, but are not limited to, the default status of the loans (i.e., number of days in default), product type (i.e., Prime, Alternative-A ("Alt-A"), or Subprime), type of insurance (i.e., primary or pool), vintage year, loss position (i.e., with or without a deductible), and the state where the property is located (segregated into three state groups in order to adjust for differences in foreclosure timing). We use an actuarial projection methodology referred to as a "roll rate" analysis that uses historical claim frequency information to determine the projected ultimate default to claim rates for each product and default status. The default to claim rate also includes our estimates with respect to expected insurance rescissions and claim denials, which have the effect of reducing our default to claim rates. In recent years, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties, and inadequate documentation, reflecting the poor underwriting periods of 2005 through 2008. After estimating the default to claim rate, we estimate the severity of each product type, type of insurance, and state grouping based on the average of recently observed severity rates. These average severity estimates are then applied to individual loan coverage amounts to determine reserves.

Our aggregate weighted average default to claim rate assumption (net of denials and rescissions) used in estimating our reserve for losses was 43% at December 31, 2011, compared to 40% at December 31, 2010. Our default to claim rate estimate varies depending on the age of the underlying defaulted loans, as measured by the number of monthly payments missed. As of December 31, 2011, our default to claim rate estimate, net of our estimate for insurance rescissions and claim denials, ranged from19% for insured loans that had missed two to three monthly payments, to 52% for such loans that had missed 12 or more monthly payments. A key assumption affecting our reserving methodology is that our default to claim rates and severities will be consistent with our recent experience. Our estimate of expected insurance rescissions and claim denials embedded in our default to claim rate is generally based on our experience over the past year, with consideration given for differences in characteristics between those rescinded policies and denied claims and the remaining default inventory.

We expect our rescission and denial rates to remain at elevated levels as long as defaults related to the poor underwriting periods of 2005 through 2008 represent a significant percentage of our total default portfolio. The percentage of defaults associated with our defaulted loans originated in 2005 through 2008 as a percentage of total defaults was 76.2% and 78.3% at December 31, 2011 and 2010, respectively. The elevated levels in the rate of rescissions and denials since 2009 have led to an increased risk of litigation by lenders and policyholders challenging our right to rescind coverage or deny claims. Under our master insurance policy, any suit or action arising from any right of the insured under the policy must be commenced within two years after such right first arose and within three years for certain other policies, including certain pool insurance policies. Recently, we have faced an increasing number of challenges from certain lender customers regarding our insurance rescissions and claim denials, which have resulted in some reversals of our decisions regarding rescissions and denials. Although we believe that our rescissions and denials are justified under our policies, if we are not successful in defending the rescissions and denials in any potential legal or other actions, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. The assumptions embedded in our estimated default to claim rate on our in-force default inventory includes an adjustment to our estimated rescission and denial rate, to account for the fact that we expect a certain number of policies for which an initial intent to rescind letter has been sent to our lender customers to remain in-force and ultimately to be paid, as a result of valid challenges by such policy holders during the limited period specified in such letters. As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied claims which we believe are likely to be reinstated (in the case of previously rescinded policies), or resubmitted (in the case of previously denied claims).

We make regular adjustments to the underlying assumptions in our model as discussed above, and believe the amount generated by our model at December 31, 2011, represents our best estimate of our future losses and LAE on existing defaults.

Financial Guaranty

In our financial guaranty segment, we recognize a claim liability on our non-derivative transactions prior to an event of default (insured event) when there is evidence that credit deterioration has occurred for a particular policy and the present value of the expected claim loss exceeds the unearned premium revenue. The expected claim loss is based on the probability-weighted present value of expected net cash outflows to be paid under, or in connection with, the policy. In measuring the claim liability, we develop the present value of expected net cash outflows by using our own assumptions about the likelihood of possible outcomes, including potential settlements or commutations, based on information currently available. We determine the existence of credit deterioration on directly insured policies based on periodic reporting from the insured party, indenture trustee or servicer, and based on our surveillance efforts. These expected cash outflows are discounted using a risk-free rate. Our assumptions about the likelihood of outcomes, expected cash outflows and the appropriate risk-free rate are updated each reporting period. For assumed policies, we use information provided by the ceding company, as well as our specific knowledge of the credit for determining expected loss.

The risk management function in our financial guaranty business is responsible for the identification, analysis, measurement and surveillance of credit, market, legal and operational risk associated with our financial guaranty insurance contracts. Risk management is also primarily responsible for claims prevention and loss mitigation strategies. This discipline is applied during the ongoing monitoring and surveillance of each exposure in the portfolio. See Note 12 for further information.

Reserve for Premium Deficiency ("PDR")

Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product exceeds the net present value of expected future premiums and existing reserves for that product. We reassess our expectations for premiums, losses and expenses for our financial guaranty and mortgage insurance businesses at least quarterly and update our premium deficiency analysis accordingly. Expected future expenses include consideration of maintenance costs associated with maintaining records relating to insurance contracts and with the processing of premium collections. We also consider investment income in the premium deficiency calculation, and utilize our pre-tax investment yield to discount certain cash flows for this analysis.

For our financial guaranty business, in order to determine whether a premium deficiency charge is necessary, we compare projected earned premiums and investment income to projected future losses, LAE, unamortized deferred acquisition costs and maintenance costs. If the sum of the costs exceeds the amount of the revenues, the excess is first charged against deferred acquisition costs and is referred to as a premium deficiency charge.

For purposes of our premium deficiency analysis, we group our mortgage insurance products into two categories, first-lien and second-lien.

Numerous factors affect our ultimate default to claim rates, including home price changes, unemployment and the impact of our loss mitigation efforts and interest rates, as well as potential benefits associated with lender and governmental initiatives to modify loans and ultimately reduce foreclosures. To assess the need for a PDR on our first-lien insurance portfolio, we develop loss projections based on modeled loan defaults related to our current RIF. This projection is based on recent trends in default experience, severity, and rates of defaulted loans moving to claim (such default to claim rates are net of our estimates of rescissions and denials), as well as recent trends in the rate at which loans are prepaid.

For our second-lien mortgage insurance business, we project future premiums and losses for this business on a transaction-by-transaction basis, using historical results to help determine future performance for both repayments and claims. An estimated expense factor is then applied, and the result is discounted using a rate of return that approximates our investment yield. This net present value, less any existing reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that quarter, along with updated transaction level projections.

Derivative Instruments

Derivative instruments are recorded at fair value, and changes in fair value are recorded in change in fair value of derivative instruments in the statement of operations. All of our derivative instruments are recognized in our consolidated balance sheets as either derivative assets or derivative liabilities, depending on the rights or obligations under the contracts. Our credit protection in the form of CDSs within our mortgage insurance segment (prior to their termination) and financial guaranty segment, derivative liabilities related to consolidated VIEs, NIMS derivative assets and financial guaranty contracts on NIMS that were not consolidated, and put options on money market CPS that were not consolidated, are all recorded at fair value, with changes in their fair value (prior to their consolidation) included in change in fair value of derivative instruments in our consolidated statements of operations. See Note 4 for further information.

We record premiums and origination costs related to our CDSs and certain other derivative contracts in change in fair value of derivative instruments and policy acquisition costs, respectively, on our consolidated statements of operations. Our classification of these contracts is the same whether we are a direct insurer or we reinsure these contracts.

VIEs

Effective January 1, 2010, we adopted the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs. As a provider of credit enhancement, we have entered into insurance contracts with VIEs and derivative contracts with counterparties where we have provided credit protection directly on variable interests and, in some cases, obtained the contractual rights of our counterparties with respect to the VIEs. As defined by the accounting standard, VIEs include corporations, trusts or partnerships in which equity investors do not have a controlling financial interest or do not have sufficient equity at risk to finance activities without additional subordinated financial support. In addition, as a result of the update to the standard regarding accounting for transfers of financial assets, effective January 1, 2010, special purpose entities that were previously considered qualifying special purpose entities (“QSPEs”) are to be considered in the VIE accounting framework as prescribed by the standard regarding financial reporting by enterprises involved with VIEs.

An entity is considered the primary beneficiary and is required to consolidate a VIE if its variable interest (i) gives it the power to most significantly impact the economic performance of the VIE, and (ii) has the obligation to absorb losses or the right to receive residual benefits that could potentially be significant to the VIE. For all VIEs in which we have a variable interest, we determine whether we are the primary beneficiary. In determining whether we are the primary beneficiary, a number of factors are considered, including the structure of the entity, provisions in our contracts that grant us additional rights to influence or control the economic performance of the VIE upon the occurrence of an event of default or a servicer termination event or the breach of a performance trigger, and our obligation to absorb significant losses. Due to the continued deterioration of the performance of many of our financial guaranty transactions, the breach of these performance tests or other events giving rise to our right to influence or control the economic performance of the VIE could occur. When we obtain control rights, we perform an analysis to reassess our involvement with these VIEs to determine whether we have become the primary beneficiary.

When evaluating whether we are the primary beneficiary of a VIE, we determine which activities most significantly impact the economic performance of the VIE. As part of our qualitative analysis, we consider whether we have any contractual rights that would allow us to direct those activities. As of December 31, 2011, we have determined that we are the primary beneficiary of our NIMS transactions, our CPS transactions and certain financial guaranty structured transactions, and we did not identify any new VIEs to be consolidated in 2011. Our control rights in these VIEs, which we obtained due to an event of default or breach of a performance trigger as defined in the transaction, generally provide us with either a right to replace the VIE servicer, or, in some cases, the right to direct the sale of the VIE assets. In those instances where we have determined that we are the primary beneficiary, we consolidate the assets and liabilities of the VIE. We have elected to carry the financial assets and financial liabilities of these VIEs at fair value.

Fair Value of Financial Instruments

Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and declines in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the event that our investments or derivative contracts were sold, commuted, terminated or settled with a counterparty, or transferred in a forced liquidation, the amounts received or paid may be materially different from those determined in accordance with the accounting standard regarding fair value measurements. Differences may arise between our recorded fair value and the settlement or termination value with a counterparty based upon consideration of information that may not be available to another market participant. Those differences, which may be material, are recorded as transaction realized gains/(losses) in our consolidated statements of operations in the period in which the transaction occurs.

We have included the additional disclosures required by the update to the accounting standard regarding fair value measurements and disclosures pertaining to the reconciliation of Level III fair value measurements. See Note 5 for additional information.

When determining the fair value of our liabilities, we are required to incorporate into the fair value of those liabilities an adjustment that reflects our own non-performance risk. Our CDS spread is an observable quantitative measure of our non-performance risk and is used by typical market participants to determine the likelihood of our default. As our CDS spread tightens or widens, it has the effect of increasing or decreasing, respectively, the fair value of our liabilities.

We established a fair value hierarchy by prioritizing the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The three levels of the fair value hierarchy under this standard are described below:

Level I —    Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level II —    Prices or valuations based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities; and

Level III —    Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of market activity used in determining the fair value hierarchy is based on the availability of observable inputs market participants would use to price an asset or a liability, including market value price observations. For markets in which inputs are not observable or limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At December 31, 2011, our total Level III assets were approximately 4.9% of total assets measured at fair value and total Level III liabilities accounted for 100% of total liabilities measured at fair value.

Available for sale securities, trading securities, VIE debt, derivative instruments, and certain other assets are recorded at fair value as described in Note 5. All derivative instruments and contracts are recognized in our consolidated balance sheets as either derivative assets or derivative liabilities. All changes in fair value of trading securities, VIE debt, derivative instruments, and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss).

Insurance Premiums-Revenue Recognition

Mortgage insurance premiums written on an annual and multi-year basis are initially recorded as unearned premiums and earned over the policy term. Premiums written on a monthly basis are earned over the period that coverage is provided. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with how direct premiums are earned. Premiums on certain structured transactions in our mortgage insurance business are recognized over the period that coverage is provided.

In our financial guaranty business, insurance premiums are earned in proportion to the level of amortization of insured principal over the contract period or over the period that coverage is provided. Unearned premiums represent that portion of premiums that will be earned over the remainder of the contract period. We record the initial unearned premium liability on installment policies equal to the present value of the premiums due or expected to be collected over either the period of the policy or the expected period of risk. In determining the present value of premiums due, we use a discount rate that reflects the risk-free rate. Premiums paid in full at inception are recorded as unearned premiums. In addition, we recognize the remaining unearned premium revenue when bonds issued are redeemed or otherwise retired (“refundings”) that results in the extinguishment of the financial guaranty policies insuring such bonds. A refunding that is effected through the deposit of cash or permitted securities into an irrevocable trust for repayment, when permitted under the applicable bond indenture (a “legal defeasance”), does not qualify for immediate revenue recognition since the defeased obligation legally remains outstanding and covered by our insurance. See Note 12 for further information. Assumed premiums are based on information reported by ceding companies. When insured obligations are refunded or called, the remaining premiums are generally earned at that time.

Credit enhancement fees earned on derivative contracts are included in the change in fair value of derivative instruments.

Deferred Policy Acquisition Costs

Costs associated with the acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is charged against revenue in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Estimates of expected gross profit including persistency and loss development assumptions for each underwriting year used as a basis for amortization are evaluated regularly, and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that earlier estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions would have a significant effect on the amortization of deferred policy acquisition costs. We amortized $36.1 million of deferred policy acquisition costs in our mortgage insurance business in both 2011 and 2010, and $27.6 million during 2009.

Deferred policy acquisition costs in the financial guaranty business are comprised of those expenses that vary with, and are principally related to, the production of insurance premiums, including: commissions paid on reinsurance assumed, salaries and related costs of underwriting and marketing personnel, rating agency fees, premium taxes and certain other underwriting expenses, offset by commission income on premiums ceded to reinsurers. Acquisition costs are deferred and amortized over the period in which the related premiums are earned for each underwriting year. The estimation of installment-based premiums requires considerable judgment, and different assumptions could produce different results. We amortized $16.7 million, $17.4 million and $35.5 million of deferred policy acquisition costs in our financial guaranty business during 2011, 2010 and 2009, respectively. As a result of the commutation of $9.8 billion of net par outstanding in 2009, we wrote off $8.9 million of deferred policy acquisition costs at that time. Origination costs of derivative contracts were expensed as incurred.

In October 2010, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standard regarding accounting for costs associated with acquiring or renewing insurance contracts. This update is effective for fiscal years beginning after December 15, 2011, and redefines acquisition costs as costs that are related directly to the successful acquisition of new, or the renewal of existing, insurance contracts. Previously, acquisition costs were defined as costs that vary with and are primarily related to the acquisition of insurance contracts. The effect of this revised definition of acquisition costs will result in additional expenses in our mortgage insurance business being charged to earnings when incurred, rather than being deferred. There is no change to the amortization requirements due to this update. We have adopted this update on a prospective basis as of January 1, 2012. Since we have discontinued writing any new financial guaranty business, there will be no impact to our financial guaranty segment from this update. However, while we are currently still evaluating the impact this new guidance will have on our consolidated financial statements and disclosures, we expect that the implementation of this new guidance will materially reduce the amount of policy acquisition costs that we defer associated with acquiring new mortgage insurance contracts, which totaled $46.2 million and $42.2 million in initial deferred costs for the years ended December 31, 2011 and 2010, respectively. The update will result in accelerating the recognition of certain expenses associated with these contracts. The lower amount of deferred acquisition costs will also result in decreased amortization expense, which should partially offset the effect to our net income. While the timing of when certain costs are reflected in our results of operations will change as a result of the adoption of this update, there will be no effect to the total acquisition costs to be recognized over time or to our cash flows.

Income Taxes

We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled.

In 2010, we were required to establish a valuation allowance against our deferred tax asset ("DTA") as it was more likely than not that all or some portion of our DTA would not be realized. At each balance sheet date, we re-assess our need for a valuation allowance and this assessment is based on all available evidence, both positive and negative, and requires management to exercise judgment and make assumptions regarding whether such DTA will be realized in future periods. Future realization of our DTA will ultimately depend on the existence of sufficient taxable income of the appropriate character (ordinary income versus capital gains) within the applicable carryback and carryforward periods provided under the tax law. The primary sources of negative evidence that we considered are our cumulative losses in recent years, and the continued uncertainty around our future operating results. We also considered several sources of positive evidence when assessing the need for a valuation allowance such as future reversals of existing taxable temporary differences, future projections of taxable income, taxable income within the applicable carryback periods, and potential tax planning strategies. In making our assessment of the more likely than not standard, the weight assigned to the effect of both negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified.

In 2010, in accordance with the accounting standard regarding the accounting and disclosure of income taxes in interim periods, we used an annualized effective tax rate to compute our tax expense each quarter. We adjusted this annualized effective tax rate each quarter by the following discrete items: (i) net gains or losses resulting from the change in fair value of our derivatives and other financial instruments, (ii) investment gains or losses, (iii) the liabilities recorded under the accounting standard regarding accounting for uncertainty in income taxes, and (iv) prior year provision-to-filed tax return adjustments. Given the impact on our pre-tax results of net gains or losses resulting from our derivative transactions and our investment portfolio, and the continued uncertainty around our ability to rely on short-term financial projections, which directly affects our ability to estimate an effective tax rate for the full year of 2011, we booked our income tax expense (benefit) in interim periods based on actual results of operations.

Foreign Currency Revaluation/Translation

Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations.

Cash and Restricted Cash

Included in our restricted cash balances are funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities, funds held as collateral under our insurance trust agreements for our previous and current health care provider, and funds held in trust for the benefit of certain policyholders.

Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. During most of 2009, our trading securities activity reflected active and frequent buying and selling, as market prices of our investments strengthened as a result of the improving domestic and global economic environment, and we made the decision to opportunistically realize gains in the investment portfolio. As such, this activity was reflected as cash flows from operating activities within our consolidated statements of cash flows during most of 2009. Beginning in the fourth quarter of 2009, we began classifying purchases of trading securities within cash flows from investing activities, since those purchases are more consistent with our overall investment strategy. While our 2011 and 2010 trading securities activity was significant, it was primarily driven by strategic repositioning of the portfolio in order to: (1) shorten duration for liquidity purposes, and (2) increase our allocation to taxable bonds to maximize our after-tax yields. Because this activity relates to overall strategic initiatives and is not trading related, it is reflected as cash flows from investing activities.

Investments

We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders' equity as accumulated other comprehensive income. Investments classified as trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Beginning in the second quarter of 2009, we classified all security purchases as trading securities. Short-term investments consist of assets invested in money market instruments, certificates of deposit and highly liquid, interest bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Note 5 for further discussion on the fair value of investments.

For certain hybrid financial instruments that would be required to be separated into a host contract and a derivative instrument, the accounting standard regarding derivatives and hedging permits an entity to irrevocably elect to initially and subsequently measure that hybrid financial instrument in its entirety at fair value (with changes in fair value recognized in earnings). We elected to record our convertible securities meeting these criteria at fair value with changes in the fair value recorded as net gains or losses on investments. All hybrid financial instruments are classified as trading securities.

On April 1, 2009, we adopted a new accounting standard regarding recognition and presentation of OTTI. In accordance with this new standard, we record an OTTI on a security if we intend to sell the impaired security or if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss, and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in accumulated other comprehensive income (loss), net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. For securities held as of April 1, 2009, that had previously been other-than-temporarily impaired, an after-tax transition adjustment of$21.5 millionwas booked to reclassify the non-credit loss portion of these impairments from retained earnings to accumulated other comprehensive income (loss). In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following:

• the extent and the duration of the decline in value;

• the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and

• the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events.

Accounts and Notes Receivable

Accounts and notes receivable consist primarily of accrued premiums receivable due from our mortgage insurance and financial guaranty customers. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions.

Company-Owned Life Insurance

We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. At December 31, 2011 and 2010, the cash surrender value of company-owned life insurance totaled $73.7 million and $71.6 million, respectively.

Property and Equipment

Property and equipment is carried at cost net of depreciation. For financial statement reporting purposes, computer hardware and software is depreciated over three years, and furniture, fixtures and office equipment is depreciated over seven years. Leasehold improvements are depreciated over the lesser of the life of the asset improved or the life of the lease. For income tax purposes, we use accelerated depreciation methods.

Accounting for Stock-Based Compensation

The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. Compensation cost is recognized over the periods that an employee provides service in exchange for the award. See Note 16 for further information.

Recent Accounting Pronouncements

In May 2011, the FASB issued an update to the accounting standard regarding fair value measurements and disclosure. This update changes the language used to describe the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements. The amendments: (i) clarify the FASB's intent about the application of existing fair value measurement and disclosure requirements, and (ii) change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this update do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. This update is effective for fiscal years beginning after December 15, 2011. We are currently evaluating the impact this new guidance will have on our consolidated financial statements and disclosures

In June 2011, the FASB issued an update to the accounting standard regarding comprehensive income. This update eliminates the current presentation options related to comprehensive income and provides an entity with the option to present the components of net income, other comprehensive income and total comprehensive income, either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Regardless of which option an entity chooses, the entity is required to present, on the face of the consolidated financial statements, reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) in which the components of net income and the components of other comprehensive income are presented. In December 2011, the FASB issued another update to the accounting standard regarding comprehensive income, which defers the effective date for the requirement noted above to present, on the face of the consolidated financial statements, the reclassification of items out of accumulated other comprehensive income. This update is effective for fiscal years beginning after December 15, 2011. We are currently evaluating the impact this new guidance will have on our consolidated financial statements and disclosures.

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Note 16 - Share-Based and Other Compensation Plans (Employee Stock Purchase Plan) (Details) (Employee Stock Purchase Plan [Member])	6 Months Ended		12 Months Ended
	Dec. 31, 2011 months	Jun. 30, 2011 months	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock authorized for issuance						2,000,000
Shares sold to employees under ESPP Plans			158,676	99,781	172,192
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life (months)	6	6
Risk-free interest rate	0.39%	0.45%
Volatility	79.68%	69.96%
Dividend yield	0.12%	0.06%
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date			15.00%

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Note 5 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) (USD $)	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-maturities held to maturity	$ 2,748,000	$ 11,416,000
Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-maturities held to maturity	2,600,000	10,800,000
Short Term Investments (Carried at Cost) Fair Value Disclosure	0	1,600,000
Other invested assets fair value disclosure	61,000,000	59,600,000
Long-term Debt, Fair Value	818,600,000	964,800,000
Non Derivative Financial Guaranty liabilities	342,300,000	406,100,000
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed-maturities held to maturity	2,700,000	11,400,000
Short Term Investments (Carried at Cost) Fair Value Disclosure	0	1,600,000
Other invested assets fair value disclosure	62,800,000	58,400,000
Long-term Debt, Fair Value	471,300,000	1,082,500,000
Non Derivative Financial Guaranty liabilities	$ 425,700,000	$ 531,100,000

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Note 21 - Subsequent Events (Details) (USD $)	12 Months Ended			3 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Mar. 31, 2012 January 2012 Assured Guaranty Transaction [Member]
Subsequent Event [Line Items]
Impact of Subsequent Event on Assumed Premiums Written				$ (119,800,000)
Impact of Subsequent Event on Net Premiums Earned				(22,200,000)
Impact of Subsequent Event on Change in Fair Value of Derivatives				100,000
Impact of Subsequent Event on Policy Acquisition Costs				(15,700,000)
Gain on sale of affiliate	0	34,815,000	0	9,000,000
Impact of Subsequent Event on Pre-Tax Income				(28,800,000)
Impact of Subsequent Event, Decrease to Cash				92,300,000
Impact of Subsequent Event, Decrease to Deferred Policy Acquisition Costs				26,200,000
Impact of Subsequent Event, Decrease to Accounts and Notes Receivable				1,100,000
Impact of Subsequent Event, Decrease To Derivative Assets				600,000
Impact of Subsequent Event, Decrease to Unearned Premiums				71,600,000
Impact of Subsequent Event, Decrease to Derivative Liabilities				900,000
Impact of Subsequent Event, Increase to Other Assets				$ 19,000,000

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Note 13 - Long-Term Debt Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Long-term Debt, Unclassified [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

The composition of our long-term debt at December 31, 2011 and 2010 was as follows:

(In thousands)			December 31, 2011		December 31 2010
7.75	%	Debentures due 2011	$	—	$	160,344
5.625	%	Senior Notes due 2013	252,267		254,305
5.375	%	Senior Notes due 2015	249,819		249,772
3.00	%	Convertible Senior Notes due 2017	316,498		300,367
		Total long-term debt	$	818,584	$	964,788

Schedule of Liability and Equity Components of Convertible Debt [Table Text Block]

The convertible notes are reflected on our consolidated balance sheets as follows:

	December 31,
(In thousands)	2011			2010
Liability component:
Principal	$	450,000		$	450,000
Less: debt discount, net (1)	(133,502		)	(149,633		)
Net carrying amount	$	316,498		$	300,367
Equity component (net of tax impact) (2)	$	65,679		$	65,701

__________________

(1) Included within long-term debt and is being amortized over the life of the convertible notes.

(2) Included within additional paid-in capital, net of capped call transactions and related issuance costs.

Schedule of Interest Expense Recognized Related to Convertible Debt [Table Text Block]

The following table sets forth total interest expense recognized related to the convertible notes for the periods indicated:

	December 31,
	2011			2010
($ in thousands)
Contractual interest expense	$	13,500		$	1,687
Amortization of debt issuance costs	1,039			124
Amortization of debt discount	16,131			1,911
Total interest expense	$	30,670		$	3,722
Effective interest rate of the liability component	9.75		%	9.75		%

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Schedule I Summary Of Investments

12 Months Ended

Dec. 31, 2011

Schedule I Summary of Investments [Abstract]

Summary of Investments, Other than Investments in Related Parties [Text Block]

Radian Group Inc.

Schedule I

Summary of Investments—Other Than Investments in Related Parties

December 31, 2011

Type of Investment	Amortized Cost		Fair Value		Amount at Which Included on the Balance Sheet
(In thousands)
Fixed-Maturities:
Bonds:
U.S. government and agency securities	$	10,931	$	13,630	$	13,630
State and municipal obligations (1)	89,723		85,440		85,332
Corporate bonds and notes	17,267		16,610		16,610
RMBS	1,308		1,360		1,360
CMBS	1,660		1,669		1,669
Other ABS	1,019		1,177		1,177
Other investments	1,489		1,595		1,595
Total fixed-maturities	123,397		121,481		121,373
Trading securities	4,101,355		4,211,059		4,211,059
Equity securities available for sale:
Common stocks	103,923		118,354		118,354
Nonredeemable preferred stocks	10,502		10,070		10,070
Total equity securities available for sale	114,425		128,424		128,424
Short-term investments	1,261,711		1,261,703		1,261,703
Other invested assets	61,000		62,835		61,000
Total investments other than investments in related parties	$	5,661,888	$	5,785,502	$	5,783,559

__________________

(1) Held to maturity and available for sale.

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Note 21 - Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

The following table provides the expected impact on our consolidated financial statements prepared under GAAP in the first quarter of 2012, for the Assured Transaction described in Note 1. While we expect a statutory capital benefit as a result of this transaction as discussed in Note 1, under GAAP this transaction will result in a reduction in net income, and therefore, a reduction in retained earnings.

Statement of Operations
(In millions)
Decrease in premiums written	$	(119.8	)
Decrease in net premiums earned	$	(22.2	)
Increase in change in fair value of derivative instruments—gain	0.1
Increase in policy acquisition costs	(15.7		)
Gain on sale of affiliate	9.0
Decrease in pre-tax income	(28.8		)
Balance Sheet
(In millions)
Decrease in:
Cash	$	92.3
Deferred policy acquisition costs	26.2
Accounts and notes receivable	1.1
Derivative assets	0.6
Unearned premiums	71.6
Derivative liabilities	0.9
Increase in other assets	19.0

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Note 14 - Income Taxes Effect of Unrecognized Tax Benefits on Consolidated Balance Sheets and Results of Operations (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Effect of Unrecognized Tax Benefits on Balance Sheets and Results of Operations [Line Items]
Unrecognized Tax Benefits	$ 125,757	$ 92,845	$ 143,391
Unrecognized Tax Benefits, Period Increase (Decrease)	32,912
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	61,901	44,040
Unrecognized Tax Benefits, If Recognized Would Affect The Effective Tax Rate	17,861
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	53,842	31,169
Unrecognized Tax Benefits, Interest and Penalties Accrued, Period Increase (Decrease)	22,673
Unrecognized Tax Benefits, Interest and Penalties Charged to Income	$ 22,673

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Note 4 - Derivative Instruments Change in Fair Value of Derivative Instruments (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	$ 628,395	$ (558,712)	$ 99,958
Net Premiums Earned On Derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	41,700	47,100	55,700
Financial Guaranty Credit Derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	598,000	(583,200)	118,000
Financial Guaranty VIE Derivative Liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	(10,700)	(14,500)	0
NIMS [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	(1,600)	(900)	(6,200)
Mortgage Insurance Domestic And International CDS[Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	0	0	(4,800)
Put Options On CPS[Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	0	(6,100)	(56,200)
Other Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	1,000	(1,100)	(6,500)
Radian Group Consolidated [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of derivative instruments	$ 628,400	$ (558,700)	$ 100,000

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Note 14 - Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Components of Income Tax Provision [Abstract]

Schedule of Components of Income Tax Expense [Table Text Block]

The components of our consolidated income tax provision (benefit) are as follows:

	Year Ended December 31
(In thousands)	2011		2010			2009
Current	$	59,604	$	(155,219	)	$	(39,057	)
Deferred	6,758		381,408			(55,344		)
Total income tax provision (benefit)	$	66,362	$	226,189		$	(94,401	)

Reconciliation of Taxes at Statutory Rate to Provision (Benefit) for Income Taxes [Table Text Block]

The reconciliation of taxes computed at the statutory tax rate of 35% for 2011, 2010 and 2009 to the provision (benefit) for income taxes is as follows:

	Year Ended December 31
(In thousands)	2011			2010			2009
Provision (benefit) for income taxes computed at the statutory tax rate	$	128,979		$	(552,887	)	$	(84,798	)
Change in tax resulting from:
Tax-exempt municipal bond interest and dividends received deduction (net of proration)	(5,237		)	(15,592		)	(31,539		)
Foreign tax benefit	(13,496		)	(10,397		)	(4,766		)
State tax benefit	(6,224		)	(15,692		)	(7,353		)
Unrecognized tax benefits	17,860			(25,915		)	28,192
Valuation allowance	(50,582		)	844,975			6,882
Other, net	(4,938		)	1,697			(1,019		)
Provision (benefit) for income taxes	$	66,362		$	226,189		$	(94,401	)

Schedule of Components of Deferred Tax Assets and Liabilities [Table Text Block]

The significant components of our net deferred tax assets and liabilities are summarized as follows:

	December 31
(In thousands)	2011		2010
Deferred tax assets:
Accrued expenses	$	41,011	$	39,295
Unearned premiums	14,327		21,926
Premium deficiency reserves	1,275		3,758
Net operating loss	666,407		738,032
Differences in fair value of derivative and other financial instruments	—		347,772
Net unrealized loss on investments	—		15,016
Rescission premium	20,015		15,227
State net operating loss carryforward	31,825		24,499
Foreign tax credit carryforward	26,884		26,661
Depreciation	5,037		2,227
Partnership investments	64,544		—
Other	57,127		53,811
Total deferred tax assets	928,452		1,288,224
Deferred tax liabilities:
Deferred policy acquisition costs	48,969		51,916
Partnership investments	—		277,422
Convertible debt	32,091		35,164
Differences in fair value of derivative and other financial instruments	3,591		—
Net unrealized gain on investments	4,191		—
Loss reserves	9,744		9,592
Foreign currency	22		11,375
Other	16,169		23,367
Total deferred tax liabilities	114,777		408,836
Valuation allowance	797,700		851,857
Net deferred tax asset	$	15,975	$	27,531

Effect of Unrecognized Tax Benefits on Consolidated Balance Sheets and Results of Operations [Table Text Block]

The effect of unrecognized tax benefits on our consolidated balance sheets and results of operations is as follows:

(In thousands)	December 31, 2010		Increase		December 31, 2011
Unrecognized tax benefits	$	92,845	$	32,912	$	125,757
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	44,040	$	17,861	$	61,901
Interest and penalties accrued	$	31,169	$	22,673	$	53,842
Interest and penalties charged to income tax expense					$	22,673

Summary of Income Tax Contingencies [Table Text Block]

A reconciliation of the beginning and ending unrecognized tax benefits is as follows:

	Year Ended December 31
(In thousands)	2011			2010
Balance at beginning of period	$	92,845		$	143,391
Tax positions related to the current year:
Increases	1,268			2,313
Decreases	(2,005		)	—
Tax positions related to prior years:
Increases	51,480			47,020
Decreases	(17,831		)	(54,874		)
Changes in judgment	—			(5,331		)
Lapses of applicable statute of limitation	—			(39,674		)
Balance at end of period	$	125,757		$	92,845

Summary of Income Tax Examinations [Table Text Block]

The following calendar tax years, listed by major jurisdiction, remain subject to examination:

U.S. Federal Corporation Income Tax	2000 - 2010(1)
Significant State and Local Jurisdictions (2)	1999 - 2010

_________________________

(1) We are currently contesting proposed adjustments resulting from the examination by the IRS for the 2000 through 2007 tax years. As part of this process, we have agreed to extend all relevant statute of limitations for the assessment of tax to December 31, 2012. All such statute of limitation extensions have limited the scope of the examinations to the recognition of certain tax benefits that were generated through our investment in a portfolio of residual interests in REMICs.

(2) Arizona, California, Florida, Georgia, New York, Ohio, Pennsylvania, Texas and New York City.

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Schedule II Financial Information of Registrant

12 Months Ended

Dec. 31, 2011

Condensed Financial Statements Parent Only [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

Radian Group Inc.

Schedule II—Financial Information of Registrant

Balance Sheets

Parent Company Only

	December 31,
($ in thousands, except share and per share amounts)	2011			2010
Assets
Investments
Trading securities—at fair value	$	387,239		$	482,873
Short-term investments—at fair value	177,116			333,687
Other invested assets	25,000			25,000
Cash	453			1,945
Restricted cash	1,060			1,835
Investment in subsidiaries, at equity in net assets (1)	1,591,914			1,027,499
Debt issuance costs	8,414			9,804
Due from affiliates, net	2,451			7,306
Property and equipment, at cost (less accumulated depreciation of $46,998 and $44,729)	2,017			3,755
Other assets	35,474			20,886
Total assets	$	2,231,138		$	1,914,590
Liabilities and Stockholders’ Equity
Accounts payable and accrued expenses	$	123,665		$	31,734
Accrued interest payable	7,558			8,594
Long-term debt	818,584			964,788
Federal income taxes—current and deferred (1)	99,040			49,644
Total liabilities	1,048,847			1,054,760
Common stockholders’ equity
Common stock: par value $.001 per share; 325,000,000 shares authorized; 150,666,446 and 150,507,853 shares issued at December 31, 2011 and 2010, respectively; 133,199,159 and 133,049,213 shares outstanding at December 31, 2011 and 2010, respectively	151			150
Treasury stock, at cost: 17,467,287 and 17,458,640 shares at December 31, 2011 and 2010, respectively	(892,052		)	(892,012		)
Additional paid-in capital	1,966,565			1,963,092
Retained earnings (deficit)	96,227			(204,926		)
Accumulated other comprehensive income (loss)	11,400			(6,524		)
Total common stockholders’ equity	1,182,291			859,780
Total liabilities and stockholders’ equity	$	2,231,138		$	1,914,540

_______________________

(1) See Note A

See Supplemental Notes.

Radian Group Inc.

Schedule II—Financial Information of Registrant

Statements of Operations

Parent Company Only

	Year Ended December 31,
(In thousands)	2011			2010			2009
Revenues:
Net investment income	$	15,890		$	8,626		$	222
Net gains on investments	24,603			61,120			280
Net gains on other financial instruments	1,085			2,496			11,970
Other income	3			220			280
Total revenues	41,581			72,462			12,752
Expenses:
Interest expense	16,132			1,911			—
Total expenses	16,132			1,911			—
Income before income taxes	25,449			70,551			12,752
(Benefit) provision for income taxes (1)	(201,741		)	(209,235		)	7,563
Equity in net income (loss) of affiliates (1)	74,960			(2,085,653		)	(153,068		)
Net income (loss)	$	302,150		$	(1,805,867	)	$	(147,879	)

_______________________

(1) See Note A

See Supplemental Notes.

Radian Group Inc.

Schedule II—Financial Information of Registrant

Statements of Cash Flows

Parent Company Only

	Year Ended December 31,
(In thousands)	2011			2010			2009
Cash flows from operating activities:
Net income (loss)	$	302,150		$	(1,805,867	)	$	(147,879	)
Adjustments to reconcile net income (loss) to net cash provided (used in) by operating activities:
Net gains on other investments	(24,603		)	(61,120		)	(280		)
Gain on the repurchase of long-term debt	—			(2,496		)	(11,970		)
Equity in undistributed net (income) loss of subsidiaries and affiliates (1)	(400,561		)	2,049,175			258,483
Increase (decrease) in federal income taxes (1)	49,396			(274,778		)	11,968
Distributions from subsidiaries and affiliates	—			—			74,369
Change in other assets	13,384			35,797			6,041
Change in accounts payable and accrued expenses	90,895			(20,711		)	8,403
Net cash provided by (used in) operating activities	30,661			(80,000		)	199,135
Cash flows from investing activities:
Sales/redemptions of fixed-maturity investments available for sale	—			4,083			3,924
Sales/redemptions of trading securities	151,840			57,989			—
Purchases of trading securities	(32,825		)	(455,724		)	—
Sales/redemptions of short term investments, net	156,665			(230,392		)	(51,159		)
Purchases of other invested assets	—			(25,000		)	—
Purchases of property and equipment, net	(523		)	(1,367		)	(2,390		)
Capital contributions to subsidiaries and affiliates	(145,987		)	(423,146		)	(5,600		)
Capital distributions from subsidiaries and affiliates	7			268,530			—
Net cash provided by (used) in investing activities	129,177			(805,027		)	(55,225		)
Cash flows from financing activities:
Dividends paid	(1,330		)	(1,202		)	(827		)
Issuance of long-term debt	—			391,310			—
Paydown of other borrowings	—			—			(100,000		)
Redemption of long-term debt	(160,000		)	(29,348		)	(45,622		)
Proceeds from issuance of common stock	—			525,887			—
Net cash (used in) provided by financing activities	(161,330		)	886,647			(146,449		)
(Decrease) increase in cash	(1,492		)	1,620			(2,539		)
Cash, beginning of year	1,945			325			2,864
Cash, end of year	$	453		$	1,945		$	325

_______________________

(1) See Note A

See Supplemental Notes.

Radian Group Inc.

Schedule II—Financial Information of Registrant

Parent Company Only

Supplemental Notes

Note A

The Radian Group Inc. (the “Parent Company”) financial statements represent the stand-alone financial statements of the Parent Company. These financial statements have been prepared on the same basis and using the same accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses the equity-method of accounting for its majority owned subsidiaries. Refer to the Parent Company's consolidated financial statements for additional information.

Revisions to Prior Periods

In preparing the Parent Company stand-alone financial statements for the year ended December 31, 2011, we identified an error in the historical presentation of the provision (benefit) for income taxes and equity in net income (loss) of affiliates. While the impact is not considered material, we have revised the prior period financial statements. The revision decreases the 2010 benefit for income taxes and equity in net loss of affiliates by $79.7 million. In addition, this revision had the effect of increasing our investment in subsidiaries balance and our net federal income tax liability as of December 31, 2010. Within the 2010 statement of cash flows, this revision resulted in reductions to the adjustment for equity in undistributed net (income) loss of subsidiaries and affiliates and increase (decrease) in federal income taxes. There was no impact to net income (loss) or total common stockholders' equity for the period ended December 31, 2010.

Certain other prior balances have been reclassified to conform to the current period presentation.

Note B

Included in short-term investments at December 31, 2011 and 2010, is $27.7 million and $19.4 million, respectively, of restricted funds required to support estimated tax payments to Radian Asset Assurance. We also had $1.1 million and $0.9 million at December 31, 2011 and 2010, respectively, of restricted cash held as collateral for our insurance trust agreement for our health insurance policy.

Note C

The Parent Company provides certain services to its subsidiaries. The Parent Company allocates to its subsidiaries corporate income and expense it incurs in the capacity of supporting those subsidiaries, based on either an allocated percentage of time spent or internally allocated capital. All operating expenses and interest expense, except for the discount amortization attributable to the senior convertible notes issued in November 2010, have been allocated to the subsidiaries for 2011, 2010 and 2009. Total operating expenses and interest expense allocated to subsidiaries for 2011, 2010 and 2009, were $100.7 million, $105.2 million and $115.8 million, respectively. Amounts charged to the subsidiaries for operating expenses are based on actual cost, without any mark-up, except for the amounts charged to subsidiaries outside the U.S. for which a reasonable mark-up is charged. The Parent Company considers these charges fair and reasonable. The subsidiaries reimburse the Parent Company for these costs in a timely manner, which has the impact of improving the cash flows of the Parent Company and reducing dividends to the Parent Company.

Note D

During 2011, the Parent Company did not receive any dividends from its subsidiaries. During 2010 and 2009, the Parent Company received a $268.5 million capital distribution and a $74.4 million dividend, respectively, from subsidiaries.

During 2011, the Parent Company made capital contributions of $146 million to its subsidiaries, which includes contributions related to tax payments. In December 2011, the Parent Company contributed its ownership interest in Radian Mortgage Assurance to Radian Guaranty, which totaled approximately $17 million. Also in December 2011, Radian Guaranty sold its ownership interest in EFSG to the Parent Company for approximately $6 million. In February 2012, the Parent Company contributed $100 million to Radian Guaranty.

During 2010, the Parent Company contributed $322 million to Radian Guaranty and $101 million to CMAC of Texas.

In October 2009, the Parent Company satisfied its obligation to pay approximately $98 million to Radian Guaranty by transferring its equity interest in Sherman to Radian Guaranty, which required no cash payment.

Note E

During 2010, the Parent Company repurchased $31.9 million, of outstanding principal amount of our 7.75% debentures due June 2011. In November 2010, the Parent Company issued $450 million principal amount of 3.0% convertible senior notes due November 2017, at a discount to par. The convertible senior notes are convertible into shares of our common stock.

The maturities of our long-term debt in future years are as follows:

($ in thousands)
2012	$	—
2013	252,267
2014	—
2015	249,819
2016	—
Thereafter	316,498
	$	818,584

Note F

The net investment income for 2011 reflects a full year of income earned on the reinvested proceeds received from our issuance of common stock in May 2010 and the issuance of our convertible debt in November 2010.

The net gains on investments for 2011 reflect unrealized gains on certain bonds in our portfolio. Net gains on investments for 2010 reflected unrealized market gains relating to our unconsolidated CPS, substantially all of which were purchased by the Parent Company during 2010.

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Schedule IV Reinsurance

12 Months Ended

Dec. 31, 2011

Reinsurance Insuarnce Premiums Earned [Abstract]

Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block]

Radian Group Inc.

Schedule IV—Reinsurance

Insurance Premiums Earned

Years Ended December 31, 2011, 2010 and 2009

($ in thousands)	Gross Amount		Ceded to Other Companies		Assumed from Other Companies		Net Amount		Assumed Premiums as a Percentage of Net Premiums
2011	$	762,428	$	38,740	$	32,337	$	756,025	4.28	%
2010	$	891,167	$	94,497	$	29,063	$	825,733	3.52	%
2009	$	919,778	$	139,626	$	45,749	$	825,901	5.54	%

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Note 1 - Description of Business and Recent Developments Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Condensed Consolidated Financial Statements Basis Of Presentation [Abstract]

Consolidation, Policy [Text Block]

Description of Business and Recent Developments

In this Note 1, we provide an overview of our business and a discussion of current business conditions, certain regulatory considerations and our holding company liquidity. Also set forth below in this Note 1 is an overview of certain risks and uncertainties facing Radian Group Inc. (“Radian Group”) and our subsidiaries.

Business Overview

Radian Group is a credit enhancement company with a primary strategic focus on domestic, first-lien residential mortgage insurance. Our business segments are mortgage insurance and financial guaranty. Prior to January 1, 2011, we also had a third segment—financial services.

Radian Group

Radian Group serves as the holding company for our insurance subsidiaries and does not have any significant operations of its own. At December 31, 2011, Radian Group had immediately available, directly or through an unregulated direct subsidiary, unrestricted cash and liquid investments of $482 million (after consideration of a recent $100 million contribution to Radian Guaranty). Radian Group's principal liquidity demands for the next 12 months include: (i) the payment of certain corporate expenses; (ii) interest payments on our outstanding long-term debt; (iii) the repayment of our 5.625% Senior Notes due February 2013; (iv) capital support for our mortgage insurance subsidiaries; (v) potential payments to the Internal Revenue Service ("IRS") resulting from the examination by the IRS for the 2000 through 2007 tax years; and (vi) the payment of dividends on our common stock. Radian Group has $950 million of debt that matures between February 2013 and November 2017, including $250 million maturing on February 15, 2013. See “Business Conditions—Holding Company Liquidity” below.

Mortgage Insurance

Our mortgage insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, and risk management services to mortgage lending institutions. We have provided these products and services mainly through our wholly-owned subsidiary, Radian Guaranty Inc., and its wholly-owned subsidiaries, Radian Mortgage Assurance Inc. (formerly Amerin Guaranty Corporation), and Radian Insurance Inc. (which we refer to as “Radian Guaranty,” “Radian Mortgage Assurance,” and “Radian Insurance,” respectively). Private mortgage insurance protects mortgage lenders from all or a portion of default-related losses on residential mortgage loans made to home buyers who generally make downpayments of less than 20% of the home’s purchase price. Private mortgage insurance also facilitates the sale of these mortgage loans in the secondary mortgage market, most of which are sold to Freddie Mac and Federal National Mortgage Association (“Fannie Mae”). We refer to Freddie Mac and Fannie Mae together as “Government Sponsored Enterprises” or “GSEs.”

Our mortgage insurance segment offers primary mortgage insurance coverage on residential first-lien mortgages (“first-lien”). At December 31, 2011, primary insurance on first-liens comprised approximately 93.7% of our $32.8 billion total first-lien risk in force ("RIF"). Prior to 2009, we also wrote pool insurance, which at December 31, 2011, comprised approximately 6.3% of our total first-lien RIF. In addition to first-lien mortgage insurance, in the past, we provided other forms of credit enhancement on residential mortgage assets. These products included mortgage insurance on second-lien mortgages (“second-lien”), credit enhancement on net interest margin securities (“NIMS”), credit default swaps (“CDSs”) on domestic and international mortgages and primary mortgage insurance on international mortgages (collectively, we refer to the risk associated with these transactions as “non-traditional”). We stopped writing non-traditional business in 2007, other than a small amount of international mortgage insurance, which we discontinued writing in 2008. Our non-traditional RIF was $214 million (less than 1% of our total risk in force) as of December 31, 2011.

Financial Guaranty

Our financial guaranty segment has provided direct insurance and reinsurance on credit-based risks through Radian Asset Assurance Inc. (“Radian Asset Assurance”), a wholly-owned subsidiary of Radian Guaranty. In 2008, in light of market conditions and the downgrade of the financial strength ratings of our financial guaranty insurance subsidiaries, we discontinued writing any new financial guaranty business, including accepting new financial guaranty reinsurance, other than as necessary to commute, restructure, hedge or otherwise mitigate losses or reduce exposure in our existing portfolio. Since 2008, we have significantly reduced our financial guaranty operations and have reduced our financial guaranty exposures through commutations in order to mitigate uncertainty, maximize the ultimate capital available for our mortgage insurance business and accelerate our access to that capital.

Financial Services

Prior to January 1, 2011, we also had a third segment—financial services. Our financial services segment included our ownership interest in Credit-Based Asset Servicing and Securitization LLC (“C-BASS”), which was a credit-based consumer asset business. We wrote off our entire investment in C-BASS in 2007. C-BASS filed for Chapter 11 bankruptcy protection on November 12, 2010, and was subsequently liquidated. Our equity interest in C-BASS, and a related note receivable from C-BASS that had also been previously written off, were extinguished pursuant to the Plan of Liquidation that was confirmed on April 25, 2011. In addition, until May 3, 2010, when we sold our remaining interest therein, our financial services segment included our equity interest in Sherman Financial Group LLC ("Sherman"), a consumer asset and servicing firm specializing in credit card and bankruptcy-plan consumer assets.

Business Conditions

As a seller of credit protection, our results are subject to macroeconomic conditions and specific events that impact the origination environment and credit performance of our underlying insured assets. The ongoing weakness in the United States ("U.S.") housing and related credit markets, characterized by a decrease in mortgage originations, decline in home prices, mortgage servicing and foreclosure delays, and ongoing deterioration in the credit performance of mortgage and other assets originated prior to 2009, together with current macroeconomic factors such as limited economic growth, the lack of meaningful liquidity in some sectors of the capital markets, and continued high unemployment, have had, and we believe will continue to have, a significant negative impact on the operating environment and results of operations for each of our businesses. Because of these factors, there is a great deal of uncertainty regarding our future performance.

Capital Preservation and Liquidity Management Initiatives

Beginning in 2008, in response to economic and market conditions, management implemented a plan focused on reducing our legacy mortgage insurance and financial guaranty risk, increasing our financial flexibility and preserving the statutory capital of Radian Guaranty. Pursuant to this plan, we have engaged in a number of strategic actions and initiatives, including the following:

• We significantly tightened our mortgage insurance underwriting standards to focus primarily on insuring only high credit quality, first-lien mortgages originated in the U.S., and we ceased writing mortgage insurance on non-traditional and many other inherently riskier products.

• We expanded our claims management and loss mitigation efforts to better manage losses in the weak housing market and high default and claim environment.

• We discontinued writing new financial guaranty business and Radian Group contributed its ownership interest in Radian Asset Assurance to Radian Guaranty. Although this structure makes the capital adequacy of our mortgage insurance business dependent, to a significant degree, on the successful run-off of our financial guaranty business, the structure has provided Radian Guaranty with substantial regulatory capital and increased liquidity through dividends from Radian Asset Assurance. Since 2008, Radian Asset Assurance has released financial guaranty contingency reserves of $215.5 million (which has increased Radian Guaranty's statutory surplus by an equal amount) and has paid $329.8 million in dividends to Radian Guaranty.

• We have reduced our legacy mortgage insurance portfolio (primarily, the vintages of 2005 through 2008), non-traditional mortgage insurance risk in force and our financial guaranty portfolio through a series of risk commutations, discounted security purchases, transaction settlements and terminations.

• We have engaged in a broad range of actions and transactions designed to increase our financial flexibility, conserve our holding company liquidity and preserve the risk-based capital position of Radian Guaranty, our primary mortgage insurance subsidiary.

Management intends to continue to execute upon its plan in 2012, with a primary focus on: (i) growing our mortgage insurance business by writing high-quality mortgage insurance in the U.S.; (ii) managing losses in our legacy mortgage insurance and financial guaranty portfolios; (iii) reducing our financial guaranty exposure and our exposure to non-traditional insured risk; and (iv) pursuing opportunities for increasing Radian Group's available liquidity and for enhancing Radian Guaranty's statutory capital position. Thus far in 2012, we have made significant progress against these initiatives, including by taking the following actions:

• In January 2012, we made further progress in our strategic objective of reducing our financial guaranty risk by consummating a three-part transaction (the "Assured Transaction") with subsidiaries of Assured Guaranty Ltd. (collectively, “Assured”) that included the commutation of $13.8 billion of financial guaranty net par outstanding that was reinsured by Radian Asset Assurance (the Assured Commutation"), the ceding of $1.8 billion of direct public finance business to Assured (the "Assured Cession") and an agreement to sell to Assured Municipal and Infrastructure Assurance Corporation (the "FG Insurance Shell"), a New York domiciled financial guaranty insurance company licensed to conduct business in 37 states and the District of Columbia. The Assured Transaction reduced our financial guaranty net par outstanding by 22.5% and is expected to provide a statutory capital benefit to Radian Asset Assurance and Radian Guaranty of approximately $100 million in the first quarter of 2012. In addition, in February 2012, three of our CDS counterparties exercised their termination rights with respect to 14 corporate collateralized debt obligations ("CDOs") that we insured (the "February 2012 CDO Terminations"), which further reduced our financial guaranty net par outstanding by $5.8 billion.

• In January 2012, we wrote approximately $2 billion of high quality mortgage insurance.

• On February 23, 2012, we launched a "Modified Dutch Auction” tender offer (the “Tender Offer”) to purchase a portion of our 2013 Senior Notes, as discussed in more detail below in this Note 1 under “Holding Company Liquidity.”

• Radian Guaranty expects to finalize a quota share reinsurance agreement with a non-affiliated reinsurer that is expected to comprise between $1.2 billion and $1.5 billion of ceded primary RIF originated in 2012.

In addition to the actions taken thus far in 2012, consistent with management's plan, we may consider additional reinsurance or negotiated commutations of our mortgage insurance RIF and financial guaranty net par outstanding and may pursue further opportunities to retire or restructure our long-term debt or the issuance of securities in one or more private or public offerings. We cannot provide any assurance that we will be successful in pursuing any such alternatives, individually or in the aggregate, and can provide no assurance that if such alternatives are executed that they will be sufficient to maintain regulatory capital requirements and holding company liquidity. See “Risks and Uncertainties” in this Note 1 below.

Insurance Regulatory—Capital Requirements

The GSEs and state insurance regulators impose various capital requirements on our insurance subsidiaries. These include risk-to-capital ratios, risk-based capital measures and surplus requirements that potentially limit the amount of insurance that each of our insurance subsidiaries may write. The GSEs and our insurance regulators possess significant discretion with respect to our insurance subsidiaries.

Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a minimum amount of statutory capital relative to the level of RIF, or “risk-to-capital.” Sixteen states (the risk-based capital or “RBC States”) currently have a statutory or regulatory risk-based capital requirement (a “Statutory RBC Requirement”), the most common of which (imposed by 11 of the RBC States) is a requirement that a mortgage insurer's risk-to-capital ratio may not exceed 25 to 1. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of an RBC State, it may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty's domiciliary state, Pennsylvania, is not one of the RBC States. In 2011, the RBC States accounted for approximately 50.5% of Radian Guaranty's total primary new insurance written.

As a result of ongoing incurred losses, Radian Guaranty's risk-to-capital ratio has increased to 21.5 to 1 as of December 31, 2011, after giving effect to the recent $100 million contribution, which was recognized in Radian Guaranty's statutory capital as of December 31, 2011. Based on our current projections, Radian Guaranty's risk-to-capital ratio is expected to increase and, absent any further capital contributions from Radian Group, is expected to exceed 25 to 1 in 2012. The ultimate amount of losses and the timing of these losses will depend, in part, on general economic conditions and other factors, including the health of credit markets, home prices and unemployment rates, all of which are difficult to predict and beyond our control. Our mortgage insurance incurred losses are driven primarily by new mortgage insurance defaults and adverse development in the assumptions used to determine our loss reserves. For 2012, we are projecting a 15% decrease in new defaults compared to 2011, which compares to an 18% decrease in 2011 and a 30% decrease in 2010. Establishing loss reserves in our businesses requires significant judgment by management with respect to the likelihood, magnitude and timing of anticipated losses. This judgment has been made more difficult in the current period of prolonged economic uncertainty. Our estimate of the percentage of defaults that ultimately will result in a paid claim (the “default to claim rate”) is a significant assumption in our reserving methodology. Our assumed aggregate weighted average default to claim rate (which incorporates the expected impact of rescissions and denials) was approximately 43% and 40% for the years ending December 31, 2011 and 2010, respectively. For 2012, we anticipate that the aggregate weighted average default to claim rate will be similar to that assumed in 2011. Assuming all other factors remain constant, for each 1% increase in our aggregate weighted average default to claim rate as of December 31, 2011, incurred losses would increase by approximately $67 million. Radian Guaranty's statutory capital would be reduced by the after-tax impact of these incurred losses. The level of incurred losses in our mortgage insurance business also is dependent on our estimate of anticipated rescissions and denials, among other assumptions. See Note 10 below for further information. If the actual losses we ultimately realize are in excess of the loss estimates we use in establishing loss reserves, we may be required to take unexpected charges to income, which could adversely affect our statutory capital position and further increase Radian Guaranty's risk-to-capital ratio. See “Risks and Uncertainties” below in this Note 1.

If Radian Guaranty is not in compliance with the applicable Statutory RBC Requirement in any RBC State, it may be prohibited from writing new business in that state until it is back in compliance or it receives a waiver or similar relief of the requirement from the applicable state insurance regulator, as discussed in more detail below. In those states that do not have a Statutory RBC Requirement, it is not clear what actions the applicable state regulators would take if a mortgage insurer fails to meet the Statutory RBC Requirement established by another state. Accordingly, if Radian Guaranty fails to meet the Statutory RBC Requirement in one or more states, it could be required to suspend writing business in some or all of the states in which it does business. In addition, the GSEs and our mortgage lending customers may decide not to conduct new business with Radian Guaranty (or may reduce current business levels) or impose restrictions on Radian Guaranty while its risk-to-capital ratio remained at elevated levels. The franchise value of our mortgage insurance business would likely be significantly diminished if we were prohibited from writing new business or restricted in the amount of new business we could write in one or more states.

Radian Guaranty's risk-to-capital position also is dependent on the performance of our financial guaranty portfolio. During the third quarter of 2008, we contributed our ownership interest in Radian Asset Assurance to Radian Guaranty. While this reorganization provided Radian Guaranty with substantial regulatory capital and dividends, it also makes the capital adequacy of our mortgage insurance business dependent, to a significant degree, on the performance of our financial guaranty business. Based upon our surveillance of the insured credits in our financial guaranty portfolio, we are not anticipating significant statutory incurred losses in 2012 compared to $99.2 million of statutory incurred losses in 2011. However, if our financial guaranty portfolio performs significantly worse than anticipated, including if we are required to establish (or significantly increase) one or more significant statutory reserves on defaulted obligations that we insure, or if we make net commutation payments to terminate insured financial guaranty obligations in excess of the then established statutory reserves for such obligations, the statutory capital of Radian Guaranty also would be negatively impacted. In particular, Radian Asset Assurance provides credit protection on one insured CDO of asset-backed securities ("ABS") with $450.6 million in net par outstanding as of December 31, 2011 (the “CDO of ABS”). In November 2011, the CDO of ABS experienced an approximately $36 thousand interest shortfall, and we established a reserve for this transaction in the fourth quarter of 2011 for statutory accounting purposes. Because Radian Asset Assurance is a direct subsidiary of Radian Guaranty, for the quarter ended December 31, 2011, this statutory reserve had a $91.8 million direct, negative impact on the statutory capital of Radian Guaranty. The statutory reserve for the CDO of ABS at December 31, 2011, reflects our current expectation that there is a high probability that the transaction will be commuted in the near term. If the terms of any commutation differ materially from our current expectations and assumptions, or if a commutation does not occur, it could have a material negative impact on our statutory reserves which, in turn, would have a material adverse impact on Radian Guaranty's statutory capital. There can be no assurance that we will be successful in commuting our risk remaining on the CDO of ABS or that if we are successful, the terms will not be materially different than our assumptions. Any decrease in the capital support from our financial guaranty business would have a negative impact on Radian Guaranty's risk-to-capital position and its ability to remain in compliance with the Statutory RBC Requirements. See “Risks and Uncertainties” below in this Note 1.

We actively manage Radian Guaranty's risk-to-capital position in various ways, including: (1) through reinsurance arrangements; (2) by seeking opportunities to reduce our risk exposure through commutations or other negotiated transactions; (3) by contributing additional capital from Radian Group to our mortgage insurance subsidiaries; and (4) by monetizing gains in our investment portfolio through open market sales of securities. After the recent $100 million contribution to Radian Guaranty, Radian Group currently has unrestricted cash and liquid investments of $482.8 million (before giving consideration to Radian Group's Tender Offer commenced on February 23, 2012) that may be used to further support Radian Guaranty's risk-to-capital position. Depending on the extent of our future incurred losses, the amount of capital contributions required for Radian Guaranty to remain in compliance with the Statutory RBC Requirements could be substantial and could exceed amounts maintained at Radian Group. See “Holding Company Liquidity” and “Risks and Uncertainties” below in this Note 1.

Our ability to continue to reduce Radian Guaranty's risk through affiliated reinsurance arrangements may be limited. These arrangements are subject to regulation by state insurance regulators who could decide to limit, or require the termination of, such arrangements. In addition, certain of these affiliated reinsurance companies currently are operating at or near minimum capital levels and have required, and may continue to require, additional capital contributions from Radian Group in the future. One of these affiliated insurance companies, which provides reinsurance to Radian Guaranty for coverage in excess of 25% of certain loans insured by Radian Guaranty, is a sister company of Radian Guaranty, and therefore, any contributions to this insurer would not be consolidated with Radian Guaranty's capital for purposes of calculating Radian Guaranty's risk-to-capital position. In addition, under the GSE Approvals (defined below), we must obtain prior approval from the GSEs to enter into new, or to modify existing, reinsurance arrangements. If we are limited in, or prohibited from, using reinsurance arrangements to reduce Radian Guaranty's risk, it would adversely impact Radian Guaranty's risk-to-capital position.

In order to maximize our financial flexibility, we have applied for waivers or similar relief for Radian Guaranty in each of the RBC States. Of the 16 RBC states, New York does not possess the regulatory authority to grant waivers, and Iowa, Kansas and Ohio have declined to grant waivers to Radian Guaranty. In addition, Oregon has indicated that it will not consider our waiver application until such time that Radian Guaranty has exceeded its Statutory RBC Requirement. Of the remaining 11 RBC States, Radian Guaranty has received waivers or similar relief from the following six states: Illinois, Kentucky, New Jersey, Wisconsin, Arizona, and Missouri. Radian Guaranty has applications pending in the five remaining RBC States. There can be no assurance: (1) that Radian Guaranty will be granted a waiver in any of the remaining RBC States; (2) that for any waiver granted, such regulator will not revoke or terminate the waiver, which the regulator generally has the authority to do at any time; (3) that for any waiver granted, it will be renewed or extended after its original expiration date; or (4) regarding what, if any, requirements may be imposed as a condition to such waivers, and whether we will be able to comply with any such conditions.

In addition to filing for waivers in the RBC States, we intend to write new first-lien mortgage insurance business in Radian Mortgage Assurance in any RBC State that does not permit Radian Guaranty to continue writing insurance while it is out of compliance with applicable Statutory RBC Requirements. Radian Mortgage Assurance is a wholly-owned subsidiary of Radian Guaranty and is licensed to write mortgage insurance in each of the fifty states. In February 2012, Radian Mortgage Assurance received approvals from the GSEs to write new mortgage insurance business in any RBC State where Radian Guaranty would be prohibited from writing new business if it were not in compliance with the state's Statutory RBC Requirement without a waiver or other similar relief. These approvals are temporary and are conditioned upon our compliance with a broad range of conditions and restrictions, including without limitation, minimum capital and liquidity requirements, a maximum risk-to-capital ratio of 20 to1 for Radian Mortgage Assurance, restrictions on the payment of dividends and requirements governing the manner in which Radian Guaranty and Radian Mortgage Assurance conduct affiliate transactions. See “Risks and Uncertainties” below in this Note 1.

It is also possible that if Radian Guaranty were not able to comply with the Statutory RBC Requirements of one or more states, the insurance regulatory authorities in states other than the RBC States could prevent Radian Guaranty from continuing to write new business in such states. If this were to occur, we would need to seek approval from the GSEs to expand the scope of their approvals to allow Radian Mortgage Assurance to write business in states other than the RBC States.

On February 27, 2012, Radian Group, Radian Guaranty and Radian Mortgage Assurance entered into an agreement with Fannie Mae that provides for the approval of Radian Mortgage Assurance as a direct issuer of mortgage guaranty insurance in the RBC States, subject to certain terms, conditions and restrictions. Under the Fannie Mae Approval, Radian Mortgage Assurance will be eligible to write mortgage insurance only in those RBC States where Radian Guaranty is out of compliance with (or is expected to be out of compliance with) applicable Statutory RBC Requirements and has been unable to obtain a waiver or other similar relief. Fannie Mae's approval is conditioned upon, among other things, Radian Guaranty's using commercially reasonable efforts to obtain waivers or similar relief in those RBC states in which Radian Guaranty anticipates that it will be unable to meet applicable Statutory RBC Requirements. The Fannie Mae Approval requires Radian Group to contribute: (a) $100 million in cash or cash equivalents to Radian Guaranty within 30 days of the effective date of the approval (Radian Group's recent $100 million contribution satisfies this requirement); and (b) in the future, an additional $50 million after the end of the quarter in which it is determined that Radian Guaranty's risk-to-capital ratio exceeded applicable Statutory RBC Requirements. The Fannie Mae Approval expires on December 31, 2013, and may be revoked at any time.

On February 28, 2012, Freddie Mac approved Radian Guaranty's use of Radian Mortgage Assurance as a special purpose mortgage insurer (a “Limited Insurer”) to write business in those RBC States in which Radian Guaranty is not in compliance with (or is not expected to be in compliance with) Statutory RBC Requirements and has not been granted a waiver or other similar relief after trying in good faith to obtain such relief. Under the Freddie Mac Approval, Radian Mortgage Assurance currently is eligible to write business in New York, Ohio, Iowa, Kansas, and subject to certain conditions, Oregon, with the approvals for the remaining RBC states to be evaluated by Freddie Mac when and if such approvals may be required. The Freddie Mac Approval expires on December 31, 2012, and may be revoked at any time. The Freddie Mac Approval contains conditions and restrictions including, among others, that Radian Group make contributions to Radian Guaranty so that Radian Guaranty maintains minimum “Liquid Assets” (as defined in the Freddie Mac Approval) of $700 million. The Freddie Mac Approval is conditioned upon Radian Mortgage Assurance not exceeding a risk-to-capital ratio of 20 to 1. Pursuant to the Freddie Mac Approval, Radian Group must contribute $100 million in cash to Radian Guaranty (Radian Group's recent $100 million contribution satisfies this requirement), and in the future must contribute$50 millionin cash or cash equivalents to Radian Mortgage Assurance upon Radian Guaranty's breach of a Statutory RBC Requirement such that the use of Radian Mortgage Assurance is required to continue to write new business in the applicable RBC State.

In the third quarter of 2011, two longstanding competitors, Republic Mortgage Insurance Company ("RMIC") and PMI Group Inc. ("PMI"), ceased writing new mortgage insurance commitments. In October 2011, RMIC was placed into runoff, and in early 2012, RMIC was placed under the supervision of the insurance department of its domiciliary state. PMI ceased writing new mortgage insurance commitments in August 2011 when it was placed under the supervision, and later under the control of, the insurance department of its domiciliary state. In the fourth quarter of 2011, PMI's parent company filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Both Fannie Mae and Freddie Mac suspended RMIC, PMI and a PMI subsidiary as approved mortgage insurers. We are uncertain how such events, including the actions taken by the GSEs, will impact the status of Radian Guaranty's on-going requests for waivers and compliance with the GSEs Approvals.

Our existing capital resources may not be sufficient to successfully manage Radian Guaranty's risk-to-capital ratio. Our ability to use waivers and Radian Mortgage Assurance to allow Radian Guaranty to continue to write business with a risk-to-capital position that is not in compliance with the Statutory RBC Requirements is subject to conditions that we may be unable to satisfy. As a result, even if we are successful in implementing this strategy, additional capital contributions could be necessary, which we may not have the ability to provide.

Regardless of the waivers and the GSEs approval of Radian Mortgage Assurance, we may choose to use our existing capital at Radian Group to maintain compliance with the Statutory RBC Requirements. Depending on the extent of our future incurred losses along with other factors, the amount of capital contributions that may be required to maintain compliance with the Statutory RBC Requirements could be significant and could exceed all of our remaining available capital. In the event we contribute a significant amount of Radian Group's available capital to Radian Guaranty and Radian Mortgage Assurance, our financial flexibility would be significantly reduced, making it more difficult for Radian Group to meet its obligations in the future, including future principal payments on our outstanding debt. See “Holding Company Liquidity” and “Risks and Uncertainties” below in this Note 1.

Holding Company Liquidity

Radian Group serves as the holding company for our insurance subsidiaries and does not have any significant operations of its own. Radian Group's principal liquidity demands for the next 12 months include funds for: (i) the payment of certain corporate expenses; (ii) interest payments on our outstanding long-term debt; (iii) repayments of our5.625%Senior Notes due February 2013; (iv) capital support for our mortgage insurance subsidiaries; (v) potential payments to the IRS resulting from the examination by the IRS for the 2000 through 2007 tax years; and (vi) the payment of dividends on our common stock.

Radian Group had immediately available, directly or through an unregulated direct subsidiary, unrestricted cash and liquid investments of $482.8 million at December 31, 2011. This amount includes $150 million of investments contained in our committed preferred trust securities (“CPS”) custodial trusts as discussed below and in Note 6. In November 2011 and February 2012, Radian Group contributed approximately $50.6 million and $100.0 million, respectively, to its mortgage insurance subsidiaries to support their capital positions, as further discussed below. Both of these contributions were effective as of December 31, 2011, and therefore, the $482.8 million of available cash and liquid investments reflects amounts remaining after giving effect to these contributions.

We expect to fund Radian Group's short-term liquidity needs with (i) existing cash and marketable securities, including, if necessary, $150 million held in the CPS trust accounts, and (ii) cash received under the expense-sharing arrangements with our subsidiaries. If Radian Group's current sources of liquidity are insufficient for Radian Group to fund its obligations, Radian Group may be required to seek additional capital by incurring additional debt, by issuing additional equity, or by selling assets, which we may not be able to do on favorable terms, if at all.

Corporate Expenses and Interest Expense.  Radian Group has expense-sharing arrangements in place with its principal operating subsidiaries that require those subsidiaries to pay their share of holding-company-level expenses, including coupon rate interest payments on our outstanding long-term debt. Payments of such corporate expenses for the next 12 months, excluding interest payments, are expected to be approximately$59.6 million. For the same period, payments of interest on our long-term debt are expected to be approximately$41.0 million. These amounts are expected to be fully reimbursed by our subsidiaries under our existing expense-sharing arrangements. These expense-sharing arrangements, as amended, have been approved by applicable state insurance departments, but such approval may be modified or revoked at any time. In addition, pursuant to the GSEs' approval of Radian Mortgage Assurance as an eligible mortgage insurer, GSE consent is required to modify or amend the expense-sharing agreements. Approximately $30.7 million of future expected corporate expenses and interest expense (approximately $16.7 million for the next 12 months) has been accrued for and paid by certain subsidiaries to Radian Group as of December 31, 2011, and therefore, the total unrestricted cash and liquid investments held by Radian Group as of December 31, 2011, includes these amounts. A portion of these expenses (approximately $15.8 million) relates to performance-based compensation expenses that could be reversed in whole or in part, depending on changes in our stock price and other factors. To the extent these expenses are reversed, Radian Group would be required to reimburse the subsidiaries that paid these expenses to Radian Group. In addition, under the Fannie Mae Approval for Radian Mortgage Assurance, Radian Group is required to contribute to Radian Guaranty the amount of any future interest expense payments made by Radian Guaranty or Radian Mortgage Assurance to Radian Group pursuant to the terms of the interest expense sharing arrangements among these entities.  Pursuant to the terms of our expense sharing arrangements, any interest expense payments from Radian Guaranty or Radian Mortgage Assurance to Radian Group in 2012 are expected to be immaterial.

Repayment of 2013 Senior Notes. Our 5.625% Senior Notes with$250 millionin principal amount are due in February 2013. On February 23, 2012, Radian Group commenced a "Modified Dutch Auction” tender offer (the “Tender Offer”) to purchase a portion of its outstanding 5.625% Senior Notes Due 2013 (the “Notes”) for an aggregate purchase price not to exceed$100 million, which may be increased at our discretion (subject to increase, the “Tender Cap”). Radian Group set an early participation deadline of 5:00 P.M., New York City time, on March 7, 2012, and holders of Notes that validly tender, and do not withdraw their Notes, on or before such time will be eligible to receive an additional payment for their early participation. In the Modified Dutch Auction, the holders of Notes indicate how much principal in Notes, and at what price within Radian Group's specified range, they wish to tender. Based on the aggregate principal amount of Notes tendered and the prices specified by the tendering Note holders, Radian Group will determine the lowest price per$1,000principal amount of Notes within the range that will enable Radian Group to purchase up to the Tender Cap (or a lower amount if the offer is not fully subscribed). Except for the potential early participation payment, all Notes purchased by Radian Group in the Tender Offer will be purchased at the same price. Radian Group will not purchase Notes below a holder's indicated price per $1,000 principal amount of Notes, and in some cases, Radian Group may actually purchase Notes at a price that is above a holder's indicated price under the terms of the Tender Offer. The Tender Offer is scheduled to expire on March 21, 2012, unless extended or earlier terminated. The Tender Offer is conditioned on the satisfaction or waiver of certain conditions as described in the offering documents for the Tender Offer. Subject to applicable law, we may terminate the Tender Offer if, before such time as any Notes have been accepted for payment, any condition of the Tender Offer is not satisfied or not waived by us. The Tender Offer will be financed using a portion of the $482.8 million of available cash and liquid investments.

Tax Payments. Under our current tax-sharing agreement between Radian Group and its subsidiaries, our subsidiaries are required to pay to Radian Group, on a quarterly basis, amounts representing their estimated separate company tax liability for the current tax year. Radian Group is required to refund to each subsidiary, any amount that such subsidiary overpaid to Radian Group for a taxable year, as well as any amount that the subsidiary could utilize through existing carryback provisions of the Internal Revenue Code had such subsidiary filed its federal tax return on a separate company basis. During October 2011, Radian Group paid approximately $77 million to Radian Guaranty, which was the maximum amount required to be paid under the tax-sharing agreement. Radian Group was also obligated to make tax-sharing payments during October 2011 of approximately $7 million to other subsidiaries within our consolidated group. We do not expect to pay any material amounts in 2012 under the tax-sharing agreement. Our tax-sharing agreement may not be changed without the pre-approval of the applicable state insurance departments for certain of the insurance subsidiaries that are party to the agreement. In addition, pursuant to the GSEs' approval of Radian Mortgage Assurance as an eligible mortgage insurer, GSE consent is required to modify or amend the tax-sharing agreement.

As of the balance sheet dates, certain of our insurance subsidiaries, including Radian Guaranty, have incurred net operating losses ("NOLs") that could not be carried-back and utilized on a separate company tax return basis. As a result, we are not currently obligated to reimburse these subsidiaries for their separate company NOL carryforward. However, if in a future period our consolidated NOL is fully utilized before a subsidiary has utilized its share of NOL on a separate entity basis, then Radian Group may be obligated to fund such subsidiary's share of our consolidated tax liability to the IRS. Currently, we do not expect to fund material obligations under the provisions described in this paragraph with regard to subsidiary NOLs incurred to date.

Capital Support for Subsidiaries.  In light of on-going losses in our mortgage insurance business, Radian Group may be required to make additional capital contributions to Radian Guaranty in order to support Radian Guaranty's ability to continue writing insurance in those states that impose certain risk-based capital requirements. Radian Group contributed approximately $30 million and $100 million to Radian Guaranty in November 2011 and February 2012, respectively, and completed a series of internal transactions in order to benefit Radian Guaranty's statutory risk-based capital position. In December 2011, Radian Group contributed its ownership interest in Radian Mortgage Assurance to Radian Guaranty, which equaled approximately $17 million and Radian Guaranty sold its minority ownership interest in Enhance Financial Services Group Inc. ("EFSG"), the parent company of Commonwealth Mortgage Assurance Company of Texas ("CMAC of Texas"), to Radian Group for approximately $6 million. Radian Guaranty's risk-to-capital ratio was approximately 21.5 to 1 as of December 31, 2011, after giving effect to all of these transactions, including the February 2012 contribution, which was accrued for in Radian Guaranty's statutory capital as of December 31, 2011. Based on our current projections, Radian Guaranty's risk-to-capital ratio is expected to continue to increase and, absent any further capital contributions from Radian Group, exceed 25 to 1 in 2012. Depending on the extent of our future mortgage insurance losses along with other factors, the amount of capital contributions that may be required to maintain compliance with applicable risk based capital requirements could be significant and could exceed all of Radian Group's remaining available liquidity. See Insurance Regulatory-Capital Requirements above in this Note 1.

Radian Group also could be required to provide capital support for our other mortgage insurance subsidiaries if additional capital is required pursuant to insurance laws and regulations, by the GSEs or the rating agencies. Certain of our mortgage insurance subsidiaries that provide reinsurance to Radian Guaranty currently are operating at or near minimum capital levels and have required, and may continue to require in the future, additional capital contributions from Radian Group. In October 2011, Radian Group contributed approximately $20.6 million to CMAC of Texas to satisfy the minimum capital requirements required in Texas.

As of December 2011, Radian Group and CMAC of Texas entered into an Assumption and Indemnification Agreement with regard to certain proposed adjustments resulting from the examination by the IRS for the 2000 through 2007 tax years. Through this agreement, Radian Group agreed to indemnify CMAC of Texas for the amount of any tax payments ultimately due to the IRS for the proposed adjustments, which relate to the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of Real Estate Mortgage Investment Conduits (“REMICs”) currently held by CMAC of Texas. See Note 15 below. This indemnification was made in lieu of an immediate capital contribution to CMAC of Texas that otherwise would have been required for CMAC of Texas to maintain its minimum statutory surplus requirements due to of our remeasurement, as of December 31, 2011, of uncertain tax positions related to the portfolio of REMICs. There remains significant uncertainty with regard to the amount and timing of any resolution with the IRS, and we are currently contesting the proposed adjustments related to the REMICs.

Dividends.  Our quarterly common stock dividend is $0.0025 per share. Assuming that our outstanding common stock remains constant at 133,199,159 shares (the number of shares outstanding at December 31, 2011), we would require approximately $1.3 million in the aggregate to pay our quarterly dividends for the next 12 months.

In addition to existing available cash and marketable securities, Radian Group's principal sources of cash include dividends from Radian Guaranty (to the extent permitted under applicable laws and regulations) and permitted payments to Radian Group under tax- and expense-sharing arrangements with our subsidiaries. Radian Guaranty's ability to pay dividends to Radian Group is subject to various conditions imposed by the GSEs and rating agencies, and by insurance regulations requiring insurance department approval. In general, dividends in excess of prescribed limits are deemed "extraordinary" and require insurance department approval. In light of ongoing losses in Radian Guaranty, we do not anticipate that it will be permitted under applicable insurance laws to issue dividends to Radian Group for the foreseeable future. To the extent Radian Asset Assurance is permitted to issue dividends, these dividends will be issued to its direct parent, Radian Guaranty, and not to Radian Group.

Our most significant needs for liquidity beyond the next 12 months are: (i) the repayment of the principal amount of our outstanding long-term debt, including approximately $250 million in principal amount due in 2015 and $450 million in principal amount due in 2017; and (ii) potential additional capital contributions to our mortgage insurance subsidiaries. We may, from time to time, seek to redeem or repurchase, prior to maturity, some or all of our outstanding debt in the open market, through private transactions, one or more tender offers or otherwise, as circumstances may allow. At this time, we cannot determine the timing or amount of any potential repurchases, which will depend on a number of factors, including our capital and liquidity needs. If necessary, we may seek to refinance all or a portion of our long-term debt, which we may not be able to do on favorable terms, if at all.

Pursuant to Freddie Mac's approval of Radian Mortgage Assurance as a special purpose mortgage insurer, dated February 28, 2012, Radian Group is required to make contributions to Radian Guaranty as may be necessary so that the “Liquid Assets” of Radian Guaranty are at least $700 million throughout the term of then approval. “Liquid Assets” are the sum of (i) aggregate cash and cash equivalents; and (ii) the fair market value of the following investments: (a) residential mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Government Nationals Mortgage Association ("Ginnie Mae"); (b) securities rated single A or higher by either Moody's Investor Service ("Moody's"), Standard & Poor's Rating System ("S&P") or Fitch Ratings ("Fitch") with a remaining maturity of five years or less; and (c) U.S. Treasury securities with maturities not to exceed ten years, provided that, U.S. Treasury securities with remaining maturities in excess of five years shall not exceed ten percent of the Liquid Assets. As of December 31, 2011, Liquid Assets were approximately $1.2 billion. Although we do not expect that Radian Guaranty's Liquid Assets will fall below $700 million before December 31, 2012, we do expect the amount of Liquid Assets to continue to decline materially after December 31, 2011 and through the end of 2012 (and potentially thereafter) as Radian Guaranty's claim payments and other uses of cash continue to exceed cash generated from operations.

We expect to meet the long-term liquidity needs of Radian Group with a combination of: (i) available cash and marketable securities, including, if necessary, $150 million held in the CPS trust accounts; (ii) potential private or public issuances of debt or equity securities; (iii) potential cash received under expense-sharing arrangements with our subsidiaries; (iv) the potential sale of assets; and (v) dividends from our subsidiaries, to the extent available. See “Risks and Uncertainties” below in this Note 1.

Risks and Uncertainties

Radian Group and its subsidiaries are subject to risks and uncertainties that could affect amounts reported in our financial statements in future periods. Adverse business and economic conditions have resulted in incurred losses that have reduced our insurance subsidiaries' statutory capital, requiring contributions that have reduced holding company liquidity. Further, statutory capital requirements are subject to regulatory discretion and approval. Our future performance and financial condition are subject to significant risks and uncertainties that could cause actual results to be materially different from our estimates and forward-looking statements, including but not limited to, the following:

• Potential adverse effects of the failure or significant delay of the U.S. economy to fully recover from the most recent recession and prolonged economic downturn, including ongoing uncertainty in the housing and related credit markets and high unemployment, which could increase our mortgage insurance or financial guaranty losses beyond existing expectations. (See Notes 10, 11 and 12).

• Potential adverse effects if there are adverse developments with respect to our estimate related to the likelihood, magnitude and timing of losses in connection with establishing loss reserves or premium deficiency reserves for our mortgage insurance or financial guaranty businesses. (See Notes 10, 11 and 12).

• Potential adverse effects on us if the capital and liquidity levels of Radian Group or our regulated subsidiaries' statutory capital levels are deemed inadequate to support current business operations and strategies.

• Potential adverse effects if Radian Guaranty's regulatory risk-based capital position fails to comply with applicable state statutory or regulatory risk-based capital requirements, including if waivers or similar relief from the states that impose such statutory or regulatory risk-based capital requirements are not obtained. These risks include the possibility that: (i) insurance regulators or the GSEs may limit or cause Radian Guaranty to cease writing new mortgage insurance; (ii) the GSEs may terminate or otherwise restrict Radian Guaranty's eligibility to insure loans purchased by the GSEs; (iii) Radian Guaranty's customers may decide not to insure loans with Radian Guaranty or may otherwise limit the type or amount of business done with Radian Guaranty; and (iv) state or federal regulators could pursue regulatory actions or proceedings, including possible supervision or receivership actions, against us in the future. (See Note 15 for additional information regarding our statutory capital).

• The possibility that we may fail to comply with applicable debt covenants, which could result in a default under our long-term debt and accelerate our obligation to repay our outstanding debt, if pursuant to regulatory action, a receiver is appointed for one of our significant insurance subsidiaries.

• Factors adversely affecting Radian Group's capital and liquidity that could cause Radian Group to have insufficient sources of capital and liquidity to meet all of its expected obligations in the near-term, including the $250 million of principal amount of our debt due in 2013, our failure to estimate accurately the likelihood and potential effects of the various risks and uncertainties described in this report, as well as potential regulatory, legal or other changes to our tax- or expense-allocation agreements among Radian Group and its subsidiaries.

• Potential adverse effects resulting from the final determination or settlement of tax audits and examinations and any potential related litigation, as well as changes in tax laws, rates, regulations and policies, or interpretations of any of the foregoing that could have a material impact on our tax liabilities, tax assets and our results of operations or financial condition.

• Potential adverse effects from legislative efforts to reform the housing finance market, including the possibility that new federal legislation could reduce or eliminate the requirement for private mortgage insurance or place additional significant obligations or restrictions on mortgage insurers.

• Potential adverse impact on our businesses as a result of the implementation of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), including whether and to what extent loans with mortgage insurance are considered "qualified residential mortgages" for purposes of the Dodd-Frank Act securitization provisions or "qualified mortgages" for purposes of the “ability to repay” provisions of the Dodd-Frank Act, and potential obligations to post collateral on our existing insured derivatives portfolio.

• Our businesses have been significantly affected by, and our future success may depend upon, legislative and regulatory developments impacting the housing finance industry. The GSEs are the primary beneficiaries of the majority of our mortgage insurance policies, and the Federal Housing Authority ("FHA") remains our primary competitor outside of the private mortgage insurance industry. The GSEs' federal charters generally prohibit them from purchasing any mortgage with a loan amount that exceeds 80% of a home's value, unless that mortgage is insured by a qualified insurer or the mortgage seller retains at least a 10% participation in the loan or agrees to repurchase the loan in the event of a default. As a result, high-loan-to-value ("LTV") mortgages purchased by the GSEs generally are insured with private mortgage insurance. Changes in the charters or business practices of the GSEs, including pursuing new products for purchasing high-LTV loans that are not insured by private mortgage insurance, could reduce the number of mortgages they purchase that are insured by us and consequently diminish our franchise value. In September 2008, the Federal Housing Finance Agency ("FHFA") was appointed as the conservator of the GSEs to control and direct the operations of the GSEs. The continued role of the conservator may increase the likelihood that the business practices of the GSEs will be changed in ways that may have a material adverse effect on us. In particular, if the private mortgage insurance industry does not have the ability, due to capital constraints, to continue to write sufficient business to meet the needs of the GSEs, the GSEs may seek alternatives other than private mortgage insurance to conduct their business.

Management believes that it will be able to maintain adequate liquidity to meet Radian Group's short-term liquidity needs, and accordingly, management has prepared these financial statements on the basis that Radian Group will continue to operate as a going concern. However, in light of the risks and uncertainties mentioned above, we may be unable to continue to execute on our plan as discussed above under “Capital Preservation and Liquidity Management Initiatives,” which could have a material adverse effect on our financial position (including holding company liquidity), statutory capital, results of operations and cash flows. Our failure to maintain adequate levels of capital, among other things, could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects, financial condition and our ability to continue as a going concern.

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Note 2 - Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of all wholly-owned subsidiaries. Companies in which we, or one of our subsidiaries, exercises significant influence (generally ownership interests ranging from 20% to 50%), are accounted for in accordance with the equity method of accounting. VIEs where we are the primary beneficiary are consolidated, as described in Note 6. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated.

Certain prior period balances have been reclassified to conform to the current period presentation. We have reflected in Note 5 the additional disclosures required by the accounting standard update of fair value measurements, including the disclosures that were effective January 1, 2011. The 2010 information has been updated to be consistent with the 2011 disclosure.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our consolidated financial statements include our best estimates and assumptions, actual results may vary materially.

Reserve for Losses and LAE

Reserve for Losses and LAE

We establish reserves to provide for losses and LAE and the estimated costs of settling claims in both our mortgage insurance and financial guaranty segments, in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. Although this standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, it does not provide any other specific guidance. Therefore, because of the lack of specific guidance, we establish reserves for mortgage insurance using the guidance contained in this standard, supplemented with other accounting guidance as described below.

Estimating the loss reserves in both our mortgage insurance and financial guaranty business segments involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing of each potential loss. The models, assumptions and estimates we use to establish loss reserves may not prove to be accurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty such as currently exists. As such, we cannot be certain that our established reserves will be adequate to cover ultimate losses on incurred defaults.

Commutations, recaptures and other negotiated terminations of our insured risks in both our mortgage insurance and financial guaranty segments provide us with an opportunity to exit exposures to entire policies with insureds and reinsureds for an agreed upon payment, or payments, often at a discount to the previously estimated ultimate liability. As a result of exiting all exposures to such policies, all reserves for losses and LAE and other balances relating to the insured or reinsured policy are eliminated. Upon completion of a commutation, recapture or other negotiated termination, all such related balances, including deferred policy acquisition costs and unearned premiums, are reversed, with any remaining net gain or loss typically recorded through provision for losses. We take into consideration the specific contractual and economic terms for each individual agreement when accounting for our commutations, recaptures, or other negotiated terminations, which may result in differences in the accounting between transactions, or between our statutory financial statements and financial statements presented on a GAAP basis.

Mortgage Insurance

In the mortgage insurance segment, reserves for losses are established upon receipt of notification by servicers that a borrower has missed two monthly payments. We also establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and other fees and expenses associated with administering the claims process. We maintain an extensive database of claim payment history and use models, based on a variety of loan characteristics, including the status of the loan as reported by its servicer and the type of loan product to determine the likelihood that a default will reach claim status. Our process includes forecasting the impact of our loss mitigation efforts in protecting us against fraud, underwriting negligence, breach of representation and warranties, inadequate documentation and other items that may give rise to insurance rescissions and claim denials, to help determine the default to claim rate. Lastly, we project the amount that we will pay if a default becomes a claim (referred to as "claim severity"). Based on these estimates, we arrive at our estimate of loss reserves at a given point in time.

The default and claim cycle in our mortgage insurance business begins with our receipt of a default notice from the servicer. For financial statement reporting and internal tracking purposes, we do not consider a loan to be in default until the borrower has missed two monthly payments.

With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss reserves are increased as defaulted loans age, because they are considered to be closer to foreclosure and more likely to result in a claim payment. In the past, as the default proceeded towards foreclosure, there was generally more certainty around these estimates. However, in light of existing foreclosure backlogs and efforts to increase loan modifications among defaulted borrowers, significantly more uncertainty remains regarding current estimates with respect to the later stage defaults than was historically typical. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims. If a default cures, the reserve for that loan is removed from the reserve for losses and LAE.

We also establish reserves for defaults that we estimate have been incurred but have not been reported ("IBNR") to us on a timely basis by the servicer, and for defaults related to previously rescinded policies and denied claims which are likely to be reinstated (in the case of previously rescinded policies) or resubmitted (in the case of previously denied claims). Our estimates of amounts related to reinstatements and resubmissions are included in IBNR. Due to the period of time (generally up to 90 days) that we give the insured to rebut our decision to rescind coverage before we consider a policy to be rescinded and removed from our default inventory, we currently expect only a limited percentage of policies that were rescinded to ultimately be reinstated. We currently expect a greater percentage of claims that were denied to ultimately be resubmitted as a perfected claim and paid. Most often, a claim denial is the result of the servicer's inability to provide the loan origination file or other servicing documents for review. Under the terms of our Master Policy, our insureds have up to one year after foreclosure to provide to us the necessary documents to perfect a claim. All estimates are periodically reviewed and adjustments are made as they become necessary.

We do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim with respect to that default. For example, for those defaults in which we are in a second loss position, we initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a given structured transaction is greater than the reserve amount for the defaults contained within the transaction, we do not establish a reserve for the defaults, or if appropriate, we record only a partial reserve. We do not establish loss reserves for expected future claims on insured mortgages that are not in default. See "Reserve for Premium Deficiency" below for an exception to this general principle.

For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. The attributes used to define the groups include, but are not limited to, the default status of the loans (i.e., number of days in default), product type (i.e., Prime, Alternative-A ("Alt-A"), or Subprime), type of insurance (i.e., primary or pool), vintage year, loss position (i.e., with or without a deductible), and the state where the property is located (segregated into three state groups in order to adjust for differences in foreclosure timing). We use an actuarial projection methodology referred to as a "roll rate" analysis that uses historical claim frequency information to determine the projected ultimate default to claim rates for each product and default status. The default to claim rate also includes our estimates with respect to expected insurance rescissions and claim denials, which have the effect of reducing our default to claim rates. In recent years, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and warranties, and inadequate documentation, reflecting the poor underwriting periods of 2005 through 2008. After estimating the default to claim rate, we estimate the severity of each product type, type of insurance, and state grouping based on the average of recently observed severity rates. These average severity estimates are then applied to individual loan coverage amounts to determine reserves.

Our aggregate weighted average default to claim rate assumption (net of denials and rescissions) used in estimating our reserve for losses was 43% at December 31, 2011, compared to 40% at December 31, 2010. Our default to claim rate estimate varies depending on the age of the underlying defaulted loans, as measured by the number of monthly payments missed. As of December 31, 2011, our default to claim rate estimate, net of our estimate for insurance rescissions and claim denials, ranged from19% for insured loans that had missed two to three monthly payments, to 52% for such loans that had missed 12 or more monthly payments. A key assumption affecting our reserving methodology is that our default to claim rates and severities will be consistent with our recent experience. Our estimate of expected insurance rescissions and claim denials embedded in our default to claim rate is generally based on our experience over the past year, with consideration given for differences in characteristics between those rescinded policies and denied claims and the remaining default inventory.

We expect our rescission and denial rates to remain at elevated levels as long as defaults related to the poor underwriting periods of 2005 through 2008 represent a significant percentage of our total default portfolio. The percentage of defaults associated with our defaulted loans originated in 2005 through 2008 as a percentage of total defaults was 76.2% and 78.3% at December 31, 2011 and 2010, respectively. The elevated levels in the rate of rescissions and denials since 2009 have led to an increased risk of litigation by lenders and policyholders challenging our right to rescind coverage or deny claims. Under our master insurance policy, any suit or action arising from any right of the insured under the policy must be commenced within two years after such right first arose and within three years for certain other policies, including certain pool insurance policies. Recently, we have faced an increasing number of challenges from certain lender customers regarding our insurance rescissions and claim denials, which have resulted in some reversals of our decisions regarding rescissions and denials. Although we believe that our rescissions and denials are justified under our policies, if we are not successful in defending the rescissions and denials in any potential legal or other actions, we may need to reassume the risk on, and increase loss reserves for, those policies or pay additional claims. The assumptions embedded in our estimated default to claim rate on our in-force default inventory includes an adjustment to our estimated rescission and denial rate, to account for the fact that we expect a certain number of policies for which an initial intent to rescind letter has been sent to our lender customers to remain in-force and ultimately to be paid, as a result of valid challenges by such policy holders during the limited period specified in such letters. As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied claims which we believe are likely to be reinstated (in the case of previously rescinded policies), or resubmitted (in the case of previously denied claims).

We make regular adjustments to the underlying assumptions in our model as discussed above, and believe the amount generated by our model at December 31, 2011, represents our best estimate of our future losses and LAE on existing defaults.

Financial Guaranty

In our financial guaranty segment, we recognize a claim liability on our non-derivative transactions prior to an event of default (insured event) when there is evidence that credit deterioration has occurred for a particular policy and the present value of the expected claim loss exceeds the unearned premium revenue. The expected claim loss is based on the probability-weighted present value of expected net cash outflows to be paid under, or in connection with, the policy. In measuring the claim liability, we develop the present value of expected net cash outflows by using our own assumptions about the likelihood of possible outcomes, including potential settlements or commutations, based on information currently available. We determine the existence of credit deterioration on directly insured policies based on periodic reporting from the insured party, indenture trustee or servicer, and based on our surveillance efforts. These expected cash outflows are discounted using a risk-free rate. Our assumptions about the likelihood of outcomes, expected cash outflows and the appropriate risk-free rate are updated each reporting period. For assumed policies, we use information provided by the ceding company, as well as our specific knowledge of the credit for determining expected loss.

The risk management function in our financial guaranty business is responsible for the identification, analysis, measurement and surveillance of credit, market, legal and operational risk associated with our financial guaranty insurance contracts. Risk management is also primarily responsible for claims prevention and loss mitigation strategies. This discipline is applied during the ongoing monitoring and surveillance of each exposure in the portfolio. See Note 12 for further information.

Reserve For Premium Deficiency

Reserve for Premium Deficiency ("PDR")

Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses for a particular product exceeds the net present value of expected future premiums and existing reserves for that product. We reassess our expectations for premiums, losses and expenses for our financial guaranty and mortgage insurance businesses at least quarterly and update our premium deficiency analysis accordingly. Expected future expenses include consideration of maintenance costs associated with maintaining records relating to insurance contracts and with the processing of premium collections. We also consider investment income in the premium deficiency calculation, and utilize our pre-tax investment yield to discount certain cash flows for this analysis.

For our financial guaranty business, in order to determine whether a premium deficiency charge is necessary, we compare projected earned premiums and investment income to projected future losses, LAE, unamortized deferred acquisition costs and maintenance costs. If the sum of the costs exceeds the amount of the revenues, the excess is first charged against deferred acquisition costs and is referred to as a premium deficiency charge.

For purposes of our premium deficiency analysis, we group our mortgage insurance products into two categories, first-lien and second-lien.

Numerous factors affect our ultimate default to claim rates, including home price changes, unemployment and the impact of our loss mitigation efforts and interest rates, as well as potential benefits associated with lender and governmental initiatives to modify loans and ultimately reduce foreclosures. To assess the need for a PDR on our first-lien insurance portfolio, we develop loss projections based on modeled loan defaults related to our current RIF. This projection is based on recent trends in default experience, severity, and rates of defaulted loans moving to claim (such default to claim rates are net of our estimates of rescissions and denials), as well as recent trends in the rate at which loans are prepaid.

For our second-lien mortgage insurance business, we project future premiums and losses for this business on a transaction-by-transaction basis, using historical results to help determine future performance for both repayments and claims. An estimated expense factor is then applied, and the result is discounted using a rate of return that approximates our investment yield. This net present value, less any existing reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that quarter, along with updated transaction level projections.

Derivative instruments

Derivative Instruments

Derivative instruments are recorded at fair value, and changes in fair value are recorded in change in fair value of derivative instruments in the statement of operations. All of our derivative instruments are recognized in our consolidated balance sheets as either derivative assets or derivative liabilities, depending on the rights or obligations under the contracts. Our credit protection in the form of CDSs within our mortgage insurance segment (prior to their termination) and financial guaranty segment, derivative liabilities related to consolidated VIEs, NIMS derivative assets and financial guaranty contracts on NIMS that were not consolidated, and put options on money market CPS that were not consolidated, are all recorded at fair value, with changes in their fair value (prior to their consolidation) included in change in fair value of derivative instruments in our consolidated statements of operations. See Note 4 for further information.

We record premiums and origination costs related to our CDSs and certain other derivative contracts in change in fair value of derivative instruments and policy acquisition costs, respectively, on our consolidated statements of operations. Our classification of these contracts is the same whether we are a direct insurer or we reinsure these contracts.

Variable Interest Entities

VIEs

Effective January 1, 2010, we adopted the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs. As a provider of credit enhancement, we have entered into insurance contracts with VIEs and derivative contracts with counterparties where we have provided credit protection directly on variable interests and, in some cases, obtained the contractual rights of our counterparties with respect to the VIEs. As defined by the accounting standard, VIEs include corporations, trusts or partnerships in which equity investors do not have a controlling financial interest or do not have sufficient equity at risk to finance activities without additional subordinated financial support. In addition, as a result of the update to the standard regarding accounting for transfers of financial assets, effective January 1, 2010, special purpose entities that were previously considered qualifying special purpose entities (“QSPEs”) are to be considered in the VIE accounting framework as prescribed by the standard regarding financial reporting by enterprises involved with VIEs.

An entity is considered the primary beneficiary and is required to consolidate a VIE if its variable interest (i) gives it the power to most significantly impact the economic performance of the VIE, and (ii) has the obligation to absorb losses or the right to receive residual benefits that could potentially be significant to the VIE. For all VIEs in which we have a variable interest, we determine whether we are the primary beneficiary. In determining whether we are the primary beneficiary, a number of factors are considered, including the structure of the entity, provisions in our contracts that grant us additional rights to influence or control the economic performance of the VIE upon the occurrence of an event of default or a servicer termination event or the breach of a performance trigger, and our obligation to absorb significant losses. Due to the continued deterioration of the performance of many of our financial guaranty transactions, the breach of these performance tests or other events giving rise to our right to influence or control the economic performance of the VIE could occur. When we obtain control rights, we perform an analysis to reassess our involvement with these VIEs to determine whether we have become the primary beneficiary.

When evaluating whether we are the primary beneficiary of a VIE, we determine which activities most significantly impact the economic performance of the VIE. As part of our qualitative analysis, we consider whether we have any contractual rights that would allow us to direct those activities. As of December 31, 2011, we have determined that we are the primary beneficiary of our NIMS transactions, our CPS transactions and certain financial guaranty structured transactions, and we did not identify any new VIEs to be consolidated in 2011. Our control rights in these VIEs, which we obtained due to an event of default or breach of a performance trigger as defined in the transaction, generally provide us with either a right to replace the VIE servicer, or, in some cases, the right to direct the sale of the VIE assets. In those instances where we have determined that we are the primary beneficiary, we consolidate the assets and liabilities of the VIE. We have elected to carry the financial assets and financial liabilities of these VIEs at fair value.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. Changes in economic conditions and capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility and declines in the value of underlying collateral, could cause actual results to differ materially from our estimated fair value measurements. We define fair value as the current amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the event that our investments or derivative contracts were sold, commuted, terminated or settled with a counterparty, or transferred in a forced liquidation, the amounts received or paid may be materially different from those determined in accordance with the accounting standard regarding fair value measurements. Differences may arise between our recorded fair value and the settlement or termination value with a counterparty based upon consideration of information that may not be available to another market participant. Those differences, which may be material, are recorded as transaction realized gains/(losses) in our consolidated statements of operations in the period in which the transaction occurs.

We have included the additional disclosures required by the update to the accounting standard regarding fair value measurements and disclosures pertaining to the reconciliation of Level III fair value measurements. See Note 5 for additional information.

When determining the fair value of our liabilities, we are required to incorporate into the fair value of those liabilities an adjustment that reflects our own non-performance risk. Our CDS spread is an observable quantitative measure of our non-performance risk and is used by typical market participants to determine the likelihood of our default. As our CDS spread tightens or widens, it has the effect of increasing or decreasing, respectively, the fair value of our liabilities.

We established a fair value hierarchy by prioritizing the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The three levels of the fair value hierarchy under this standard are described below:

Level I —    Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level II —    Prices or valuations based on observable inputs other than quoted prices in active markets for identical or similar assets and liabilities; and

Level III —    Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of market activity used in determining the fair value hierarchy is based on the availability of observable inputs market participants would use to price an asset or a liability, including market value price observations. For markets in which inputs are not observable or limited, we use significant judgment and assumptions that a typical market participant would use to evaluate the market price of an asset or liability. Given the level of judgment, another market participant may derive a materially different estimate of fair value. These assets and liabilities are classified in Level III of our fair value hierarchy.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At December 31, 2011, our total Level III assets were approximately 4.9% of total assets measured at fair value and total Level III liabilities accounted for 100% of total liabilities measured at fair value.

Available for sale securities, trading securities, VIE debt, derivative instruments, and certain other assets are recorded at fair value as described in Note 5. All derivative instruments and contracts are recognized in our consolidated balance sheets as either derivative assets or derivative liabilities. All changes in fair value of trading securities, VIE debt, derivative instruments, and certain other assets are included in our consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in accumulated other comprehensive income (loss).

Insurance Premiums-Revenue Recognition

Insurance Premiums-Revenue Recognition

Mortgage insurance premiums written on an annual and multi-year basis are initially recorded as unearned premiums and earned over the policy term. Premiums written on a monthly basis are earned over the period that coverage is provided. Annual premiums are amortized on a monthly, straight-line basis. Multi-year premiums are amortized over the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Ceded premiums written are initially set up as prepaid reinsurance and are amortized in a manner consistent with how direct premiums are earned. Premiums on certain structured transactions in our mortgage insurance business are recognized over the period that coverage is provided.

In our financial guaranty business, insurance premiums are earned in proportion to the level of amortization of insured principal over the contract period or over the period that coverage is provided. Unearned premiums represent that portion of premiums that will be earned over the remainder of the contract period. We record the initial unearned premium liability on installment policies equal to the present value of the premiums due or expected to be collected over either the period of the policy or the expected period of risk. In determining the present value of premiums due, we use a discount rate that reflects the risk-free rate. Premiums paid in full at inception are recorded as unearned premiums. In addition, we recognize the remaining unearned premium revenue when bonds issued are redeemed or otherwise retired (“refundings”) that results in the extinguishment of the financial guaranty policies insuring such bonds. A refunding that is effected through the deposit of cash or permitted securities into an irrevocable trust for repayment, when permitted under the applicable bond indenture (a “legal defeasance”), does not qualify for immediate revenue recognition since the defeased obligation legally remains outstanding and covered by our insurance. See Note 12 for further information. Assumed premiums are based on information reported by ceding companies. When insured obligations are refunded or called, the remaining premiums are generally earned at that time.

Credit enhancement fees earned on derivative contracts are included in the change in fair value of derivative instruments.

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs

Costs associated with the acquisition of mortgage insurance business, consisting of compensation and other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. Amortization of these costs for each underwriting year book of business is charged against revenue in proportion to estimated gross profits over the estimated life of the policies. This includes accruing interest on the unamortized balance of deferred policy acquisition costs. Estimates of expected gross profit including persistency and loss development assumptions for each underwriting year used as a basis for amortization are evaluated regularly, and the total amortization recorded to date is adjusted by a charge or credit to our consolidated statements of operations if actual experience or other evidence suggests that earlier estimates should be revised. Considerable judgment is used in evaluating these estimates and the assumptions on which they are based. The use of different assumptions would have a significant effect on the amortization of deferred policy acquisition costs. We amortized $36.1 million of deferred policy acquisition costs in our mortgage insurance business in both 2011 and 2010, and $27.6 million during 2009.

Deferred policy acquisition costs in the financial guaranty business are comprised of those expenses that vary with, and are principally related to, the production of insurance premiums, including: commissions paid on reinsurance assumed, salaries and related costs of underwriting and marketing personnel, rating agency fees, premium taxes and certain other underwriting expenses, offset by commission income on premiums ceded to reinsurers. Acquisition costs are deferred and amortized over the period in which the related premiums are earned for each underwriting year. The estimation of installment-based premiums requires considerable judgment, and different assumptions could produce different results. We amortized $16.7 million, $17.4 million and $35.5 million of deferred policy acquisition costs in our financial guaranty business during 2011, 2010 and 2009, respectively. As a result of the commutation of $9.8 billion of net par outstanding in 2009, we wrote off $8.9 million of deferred policy acquisition costs at that time. Origination costs of derivative contracts were expensed as incurred.

In October 2010, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standard regarding accounting for costs associated with acquiring or renewing insurance contracts. This update is effective for fiscal years beginning after December 15, 2011, and redefines acquisition costs as costs that are related directly to the successful acquisition of new, or the renewal of existing, insurance contracts. Previously, acquisition costs were defined as costs that vary with and are primarily related to the acquisition of insurance contracts. The effect of this revised definition of acquisition costs will result in additional expenses in our mortgage insurance business being charged to earnings when incurred, rather than being deferred. There is no change to the amortization requirements due to this update. We have adopted this update on a prospective basis as of January 1, 2012. Since we have discontinued writing any new financial guaranty business, there will be no impact to our financial guaranty segment from this update. However, while we are currently still evaluating the impact this new guidance will have on our consolidated financial statements and disclosures, we expect that the implementation of this new guidance will materially reduce the amount of policy acquisition costs that we defer associated with acquiring new mortgage insurance contracts, which totaled $46.2 million and $42.2 million in initial deferred costs for the years ended December 31, 2011 and 2010, respectively. The update will result in accelerating the recognition of certain expenses associated with these contracts. The lower amount of deferred acquisition costs will also result in decreased amortization expense, which should partially offset the effect to our net income. While the timing of when certain costs are reflected in our results of operations will change as a result of the adoption of this update, there will be no effect to the total acquisition costs to be recognized over time or to our cash flows.

Income Taxes

Income Taxes

We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our deferred tax assets and liabilities are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our consolidated financial statements and the tax bases of these amounts. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled.

In 2010, we were required to establish a valuation allowance against our deferred tax asset ("DTA") as it was more likely than not that all or some portion of our DTA would not be realized. At each balance sheet date, we re-assess our need for a valuation allowance and this assessment is based on all available evidence, both positive and negative, and requires management to exercise judgment and make assumptions regarding whether such DTA will be realized in future periods. Future realization of our DTA will ultimately depend on the existence of sufficient taxable income of the appropriate character (ordinary income versus capital gains) within the applicable carryback and carryforward periods provided under the tax law. The primary sources of negative evidence that we considered are our cumulative losses in recent years, and the continued uncertainty around our future operating results. We also considered several sources of positive evidence when assessing the need for a valuation allowance such as future reversals of existing taxable temporary differences, future projections of taxable income, taxable income within the applicable carryback periods, and potential tax planning strategies. In making our assessment of the more likely than not standard, the weight assigned to the effect of both negative and positive evidence is commensurate with the extent to which such evidence can be objectively verified.

In 2010, in accordance with the accounting standard regarding the accounting and disclosure of income taxes in interim periods, we used an annualized effective tax rate to compute our tax expense each quarter. We adjusted this annualized effective tax rate each quarter by the following discrete items: (i) net gains or losses resulting from the change in fair value of our derivatives and other financial instruments, (ii) investment gains or losses, (iii) the liabilities recorded under the accounting standard regarding accounting for uncertainty in income taxes, and (iv) prior year provision-to-filed tax return adjustments. Given the impact on our pre-tax results of net gains or losses resulting from our derivative transactions and our investment portfolio, and the continued uncertainty around our ability to rely on short-term financial projections, which directly affects our ability to estimate an effective tax rate for the full year of 2011, we booked our income tax expense (benefit) in interim periods based on actual results of operations.

Foreign Currency Revaluation/Translation

Foreign Currency Revaluation/Translation

Assets and liabilities denominated in foreign currencies are revalued or translated at year-end exchange rates. Operating results are translated at average rates of exchange prevailing during the year. Unrealized gains and losses, net of deferred taxes, resulting from translation are included in accumulated other comprehensive income in stockholders’ equity. Realized gains and losses resulting from transactions in foreign currency are recorded in our statements of operations.

Cash and Restricted Cash

Cash and Restricted Cash

Included in our restricted cash balances are funds for a mortgage insurance reserve policy held in escrow for any future duties, rights and liabilities, funds held as collateral under our insurance trust agreements for our previous and current health care provider, and funds held in trust for the benefit of certain policyholders.

Within our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured at fair value according to their nature and purpose. During most of 2009, our trading securities activity reflected active and frequent buying and selling, as market prices of our investments strengthened as a result of the improving domestic and global economic environment, and we made the decision to opportunistically realize gains in the investment portfolio. As such, this activity was reflected as cash flows from operating activities within our consolidated statements of cash flows during most of 2009. Beginning in the fourth quarter of 2009, we began classifying purchases of trading securities within cash flows from investing activities, since those purchases are more consistent with our overall investment strategy. While our 2011 and 2010 trading securities activity was significant, it was primarily driven by strategic repositioning of the portfolio in order to: (1) shorten duration for liquidity purposes, and (2) increase our allocation to taxable bonds to maximize our after-tax yields. Because this activity relates to overall strategic initiatives and is not trading related, it is reflected as cash flows from investing activities.

Investments

Investments

We group assets in our investment portfolio into one of three main categories: held to maturity, available for sale or trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading securities are classified as available for sale and are reported at fair value, with unrealized gains and losses (net of tax) reported as a separate component of stockholders' equity as accumulated other comprehensive income. Investments classified as trading securities are reported at fair value, with unrealized gains and losses reported as a separate component of income. Beginning in the second quarter of 2009, we classified all security purchases as trading securities. Short-term investments consist of assets invested in money market instruments, certificates of deposit and highly liquid, interest bearing instruments with an original maturity of three months or less at the time of purchase. Amortization of premium and accretion of discount are calculated principally using the interest method over the term of the investment. Realized gains and losses on investments are recognized using the specific identification method. See Note 5 for further discussion on the fair value of investments.

For certain hybrid financial instruments that would be required to be separated into a host contract and a derivative instrument, the accounting standard regarding derivatives and hedging permits an entity to irrevocably elect to initially and subsequently measure that hybrid financial instrument in its entirety at fair value (with changes in fair value recognized in earnings). We elected to record our convertible securities meeting these criteria at fair value with changes in the fair value recorded as net gains or losses on investments. All hybrid financial instruments are classified as trading securities.

On April 1, 2009, we adopted a new accounting standard regarding recognition and presentation of OTTI. In accordance with this new standard, we record an OTTI on a security if we intend to sell the impaired security or if it is more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the present value of cash flows we expect to collect is less than the amortized cost basis of the security. If a sale is likely, the security is classified as other-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the statement of operations. Otherwise, losses on securities that are other-than-temporarily impaired are separated into: (i) the portion of loss that represents the credit loss, and (ii) the portion that is due to other factors. The credit loss portion is recognized as a loss in the statement of operations, while the loss due to other factors is recognized in accumulated other comprehensive income (loss), net of taxes. A credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less than the cost basis of the security. The present value of discounted cash flows is determined using the original yield of the security. For securities held as of April 1, 2009, that had previously been other-than-temporarily impaired, an after-tax transition adjustment of$21.5 millionwas booked to reclassify the non-credit loss portion of these impairments from retained earnings to accumulated other comprehensive income (loss). In evaluating whether a decline in value is other-than-temporary, we consider several factors in addition to the above, including, but not limited to, the following:

• the extent and the duration of the decline in value;

• the reasons for the decline in value (e.g., credit event, interest related or market fluctuations); and

• the financial position, access to capital and near term prospects of the issuer, including the current and future impact of any specific events.

Accounts and Notes Receivable

Accounts and Notes Receivable

Accounts and notes receivable consist primarily of accrued premiums receivable due from our mortgage insurance and financial guaranty customers. Accounts and notes receivable are carried at their estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability based on past payment history and current economic conditions.

Company-Owned Life Insurance

Company-Owned Life Insurance

We are the beneficiary of insurance policies on the lives of certain of our current and past officers and employees. We have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated balance sheets. At December 31, 2011 and 2010, the cash surrender value of company-owned life insurance totaled $73.7 million and $71.6 million, respectively.

Property and Equipment

Property and Equipment

Property and equipment is carried at cost net of depreciation. For financial statement reporting purposes, computer hardware and software is depreciated over three years, and furniture, fixtures and office equipment is depreciated over seven years. Leasehold improvements are depreciated over the lesser of the life of the asset improved or the life of the lease. For income tax purposes, we use accelerated depreciation methods.

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation

The stock-based compensation cost related to share-based liability awards is based on the fair value as of the measurement date. The compensation cost for equity instruments is measured based on the grant-date fair value at the date of issuance. Compensation cost is recognized over the periods that an employee provides service in exchange for the award. See Note 16 for further information.

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Note 11 - Reserve for Premium Deficiency First Lien Portfolio (Details) (Mortgage Insurance Segment)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Total First Lien Loans [Member]
First Lien Expected Losses Assumptions [Abstract]
First Lien PDR Discount Rate (Pre-Tax Investment Yield)	2.62%	2.44%
Expected Paid Claim Rate In Our First Lien PDR	14.20%
Paid Claim Rate Percentage Which Would Require Us To Establish A First-Lien PDR	15.80%
Performing Loans [Member]
First Lien Expected Losses Assumptions [Abstract]
Expected Paid Claim Rate In Our First Lien PDR	8.90%
Nonperforming Loans [Member]
First Lien Expected Losses Assumptions [Abstract]
Expected Paid Claim Rate In Our First Lien PDR	43.10%

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Note 16 - Share-Based and Other Compensation Plans (RSUs - Equity Settled) (Details) (2008 Equity Plan [Member], Equity Settled [Member], USD $)	12 Months Ended		12 Months Ended
	Dec. 31, 2011 Restricted Stock Units (RSUs) [Member]	Dec. 31, 2009 Restricted Stock Units (RSUs) [Member]	Dec. 31, 2011 Performance Based RSUs [Member]	Dec. 31, 2010 Performance Based RSUs [Member] years	Dec. 31, 2011 Timed-Vested RSUs [Member]	Dec. 31, 2011 Timed-Vested RSUs [Member] Minimum [Member]	Dec. 31, 2011 Timed-Vested RSUs [Member] Maximum [Member]	Dec. 31, 2011 Timed-Vested RSUs [Member] Key Employee [Member]	Dec. 31, 2011 Timed-Vested RSUs [Member] Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants by Compensation Committee	323,866		0	203,300	323,866			77,027	246,839
Vesting period (in years)						3 years	4 years	4 years	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life (years)				3
Risk-free interest rate				1.40%
Volatility				154.50%
Dividend yield				0.12%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Unvested, Beginning of Period, Number of Shares	216,300	0
Unvested, Beginning of Period, Weighted Average Grant-Date Fair Value Per Share	$ 11.72
Granted, Number of Shares	323,866		0	203,300	323,866			77,027	246,839
Granted, Weighted Average Grant-Date Fair Value Per Share	$ 5.86
Vested, Number of Shares	0
Vested, Weighted Average Grant-Date Fair Value Per Share	$ 0.00
Forfeited, Number of Shares	(34,983)
Forfeited, Weighted Average Grant-Date Fair Value Per Share	$ 10.03
Unvested, End of Period, Number of Shares	505,183	0
Unvested, End of Period, Weighted Average Grant-Date Fair Value Per Share	$ 8.08

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Note 10 - Losses and LAE Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Losses and LAE Mortgage Insurance [Abstract]

Loss Reserves By Segment [Table Text Block]

Our reserve for losses and LAE, as of the dates indicated, consisted of:

	December 31,
(In thousands)	2011		2010
Mortgage insurance reserves	$	3,247,900	$	3,524,971
Financial guaranty reserves (1)	63,002		71,764
Total reserve for losses and LAE	$	3,310,902	$	3,596,735

_________________________

(1) Includes reserve for losses and LAE for our trade credit reinsurance and surety business of $2.5 million and $4.3 million at December 31, 2011 and 2010, respectively.

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table presents information relating to our mortgage insurance reserves for losses and LAE as of the dates indicated:

	Year Ended December 31,
(In thousands)	2011		2010		2009
Mortgage Insurance
Balance at January 1	$	3,524,971	$	3,450,538	$	2,989,994
Less reinsurance recoverables (1)	223,254		621,644		491,836
Balance at January 1, net of reinsurance recoverables	3,301,717		2,828,894		2,498,158
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	1,127,079		1,173,035		1,712,477
Prior years	166,778		557,766		(411,650		)
Total incurred	1,293,857		1,730,801		1,300,827
Deduct paid claims and LAE related to:
Current year (2)	39,642		54,410		138,717
Prior years	1,459,601		1,203,568		831,374
Total paid	1,499,243		1,257,978		970,091
Balance at end of period, net of reinsurance recoverables	3,096,331		3,301,717		2,828,894
Add reinsurance recoverables (1)	151,569		223,254		621,644
Balance at December 31	$	3,247,900	$	3,524,971	$	3,450,538

_________________________

(1) Related to ceded losses on captive reinsurance transactions and Smart Home. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Off-Balance Sheet Arrangements" for additional information regarding our Smart Home transactions.

(2) Related to underlying defaulted loans with a most recent date of default notice in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

Rescissions And Denials [Table Text Block]

The following table illustrates the amount of first-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of reinstatements within each period:

	Year Ended December 31,
(In millions)	2011		2010		2009
Rescissions—first loss position	$	360.0	$	339.2	$	330.7
Denials—first loss position	133.9		200.2		67.4
Total first loss position (1)	493.9		539.4		398.1
Rescissions—second loss position	114.2		199.1		372.9
Denials—second loss position	37.0		61.5		54.6
Total second loss position (2)	151.2		260.6		427.5
Total first-lien claims submitted for payment that were rescinded or denied (3)	$	645.1	$	800.0	$	825.6

______________________

(1) Related to claims from policies in which we were in a first loss position and would have paid the claim absent the rescission or denial.

(2) Related to claims from policies in which we were in a second loss position. These rescissions or denials may not have resulted in a claim payment obligation due to deductibles and other exposure limitations included in our policies.

(3) Includes a small number of submitted claims that were subsequently withdrawn by the insured.

Our reported rescission and denial activity in any given period is subject to future challenges by our lender customers. Recent trends in insurance rescissions and claim denial activity reflect lenders challenging a greater number of rescissions and denials, and the overall challenges have been more effective (i.e., producing new or additional information that supports a reinstatement of coverage or a claim payment). Reinstatements of policies and resubmissions of claims that had been rescinded or denied as of the prior year-end, totaled $114.5 million in 2011, compared to $43.7 million in 2010. As a result of these trends, we expect that a larger portion of previously rescinded policies will be reinstated and previously denied claims will be resubmitted with the required documentation and ultimately paid, and have considered this expectation in developing our IBNR reserve estimate. This estimate, which currently primarily consists of our estimate of the future reinstatements of previously rescinded policies and denied claims, was $170.6 million and $39.5 million at December 31, 2011 and December 31, 2010, respectively.

The following table illustrates the total amount of first-lien claims submitted to us for payment that have been rescinded since January 1, 2009, and then subsequently were challenged ("rebutted") by the lenders and policyholders, but not reinstated, for the period from January 1, 2009, through December 31, 2011.

(In millions)	As of December 31, 2011
First loss position	$	460.7
Second loss position	191.8
Total non-overturned rebuttals on rescinded first-lien claims	$	652.5

While the total potential claim amount of non-overturned rebuttals outstanding represents all challenged rescissions for which coverage has not been reinstated, our ongoing, active discussions with our lender customers typically involve only a small number of these non-overturned rebuttals. Accordingly, we expect that some portion of these rescinded claims may be reinstated in future periods. Absent litigation or other legal proceedings in which we are not successful, we do not expect that these discussions are likely to result in settlements that would materially impact our liquidity or results of operations.

We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated insurance rescission activity. Our accrued liability for such refunds, which is included within accounts payable and accrued expenses on our consolidated balance sheets, was $57.2 million and $43.5 million as of December 31, 2011 and 2010, respectively.

Rescission and denial rates in 2011 have been affected by an increase in the number of claims received that we are reviewing for potential violations of our insurance policies. The following table shows the cumulative denial and rescission rates, net of reinstatements, as of December 31, 2011, on our total first-lien portfolio for each quarter in which the claims were received for the periods indicated:

Claim Received Quarter	Cumulative Rescission/Denial Rate for Each Quarter (1)		Percentage of Claims Resolved (2)
Q1 2009	23.8	%	100	%
Q2 2009	25.6	%	100	%
Q3 2009	22.7	%	100	%
Q4 2009	20.8	%	100	%
Q1 2010	18.9	%	99	%
Q2 2010	18.3	%	99	%
Q3 2010	16.6	%	98	%
Q4 2010	18.2	%	97	%
Q1 2011	21.4	%	92	%
Q2 2011	22.6	%	79	%

 ______________________

(1) Rescission/Denial rates represent the ratio of claims rescinded or denied to claims received (by claim count) and represent (as of December 31, 2011) the cumulative rate for each quarter based on number of claims received during that quarter. Until all of the claims received during the periods shown have been internally resolved, the rescission/denial rates for each quarter will be subject to change. These rates also will remain subject to change based on reinstatements of previously rescinded policies or denied claims.

(2) The percentage of claims resolved for each quarter presented in the table above, represents the number of claims that have been internally resolved as a percentage of the total number of claims received for that specific quarter. A claim is considered internally resolved when it is either paid or it is concluded that the claim should be denied or rescinded, though such denials or rescissions could be challenged and, potentially reinstated. For the third and fourth quarters of 2011, a significant portion of claims received for those quarters have not been internally resolved; therefore, we do not believe the cumulative rescission rates for those periods are presently meaningful and are therefore not presented.

Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block]

The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated:

	Year Ended December 31,
(In thousands)	2011		2010
Reserves for losses by category:
Prime	$	1,748,412	$	1,607,741
Alt-A	612,423		687,960
A minus and below	370,806		413,137
Reinsurance recoverable (1)	151,569		223,254
Total primary reserves	2,883,210		2,932,092
Pool insurance	353,583		566,565
Total first-lien reserves	3,236,793		3,498,657
Second-lien (2)	11,070		26,161
Other	37		153
Total reserve for losses	$	3,247,900	$	3,524,971

______________________

(1) Represents ceded losses on captive transactions and Smart Home.

(2) Does not include second-lien premium deficiency reserve.

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Note 2 - Significant Accounting Policies (Details) (USD $)	12 Months Ended									12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Mortgage Insurance Segment	Dec. 31, 2010 Mortgage Insurance Segment	Dec. 31, 2009 Mortgage Insurance Segment	Dec. 31, 2011 Default To Claim Rate Assumptions Twelve Or More Missed Payments [Member]	Dec. 31, 2011 Default To Claim Rate Assumptions Two Missed Payments [Member]	Dec. 31, 2011 Default To Claim Rate Assumptions Three Missed Payments [Member]	Dec. 31, 2011 Financial Guaranty Segment	Dec. 31, 2010 Financial Guaranty Segment	Dec. 31, 2009 Financial Guaranty Segment	Dec. 31, 2009 Accounting Standards Update 2009-08	Dec. 31, 2011 Computer Equipment [Member]	Dec. 31, 2011 Leasehold Improvements [Member]
Losses and LAE Mortgage Insurance [Abstract]
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions	43.00%	40.00%		43.00%	40.00%
Default To Claim Rate Estimate Net Of Rescission And Denial Estimates For Insured Loans That Missed Two To Three Monthly Payments				19.00%
Default To Claim Estimate Net Of Rescission And Denial Estimates For Loans That Missed Twelve Or More Monthly Payments				52.00%
Number Of Payments Missed For Insured Loans							12	2	3
Percentage Of Defaults Related To Origination Years 2005 Through 2008				76.20%	78.30%
Under Our Master Insurance Policy Any Suit Or Action Arising From Any Right Of The Insured Under The Policy Must Be Commenced Within This Number Of Years After Such Right First Arose	2
Under Our Master Insurance Policy Any Suit Or Action Arising From Any Right Of Certain Other Policies Must Be Commenced Within This Number Of Years After Such Right First Arose	3
Fair Value Level III Assets and Liabilities [Abstract]
Total Level III Assets	4.90%
Total Level III Liabilities	100.00%
Deferred Policy Acquisition Costs Disclosures [Abstract]
Deferred Policy Acquisition Cost, Amortization Expense	$ 52,763,000	$ 53,469,000	$ 63,034,000	$ 36,100,000	$ 36,100,000	$ 27,600,000				$ 16,700,000	$ 17,400,000	$ 35,500,000
Net Par Outstanding Commuted in 2009												9,800,000,000
Write off of deferred policy acquisition costs as a result of the 2009 commutation												8,900,000
Deferred Policy Acquisition Costs, Additions				46,200,000	42,200,000
Investments [Abstract]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets													21,500,000
Company-Owned Life Insurance
Life Insurance, Corporate or Bank Owned, Amount	$ 73,700,000	$ 71,600,000
Property, Plant and Equipment, Useful Life, Maximum														3	7

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Note 7 - Investments Change in Unrealized Gains (Losses) Recorded in AOCI (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Fixed Maturities [Member]
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items]
Unrealized holding gains (losses) arising during the period, net of tax	$ 11,328	$ 23,806	$ 151,001
Less: Reclassification adjustment for unrealized gains or losses realized upon the sale of securities, net of tax	34,697	4,980	(59,392)
Net unrealized gain on investments, net of tax	46,025	28,786	91,609
Equity Securities [Member]
Change In Unrealized Gains (Losses) Recorded In AOCI [Line Items]
Unrealized holding gains (losses) arising during the period, net of tax	(3,928)	15,080	27,335
Less: Reclassification adjustment for unrealized gains or losses realized upon the sale of securities, net of tax	(2,769)	(1,242)	5,395
Net unrealized gain on investments, net of tax	$ (6,697)	$ 13,838	$ 32,730

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Consolidated Balance Sheets Statement (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Investments
Fixed-maturities held to maturity—at amortized cost (fair value $2,748 and $11,416)	$ 2,640	$ 10,773
Fixed-maturities available for sale at fair value (amortized cost $120,757 and $340,795)	118,733	273,799
Equity securities available for sale—at fair value (cost $114,425 and $160,242)	128,424	184,365
Trading securities—at fair value (including variable interest entity (“VIE”) securities of $94,521 and $83,184)	4,211,059	4,562,821
Short-term investments at fair value (including VIE investments of $149,981 and $149,981)	1,261,703	1,537,498
Other invested assets—at cost	61,000	59,627
Total investments	5,783,559	6,628,883
Cash	35,589	20,334
Restricted cash	27,020	31,413
Deferred policy acquisition costs	139,906	148,326
Accrued investment income	32,262	40,498
Accounts and notes receivable (less allowance of $0 and $50,000)	102,647	116,452
Property and equipment, at cost (less accumulated depreciation of $96,403 and $92,451)	11,044	13,024
Derivative assets (including VIE derivative assets of $1,602 and $10,855)	17,212	26,212
Deferred income taxes, net	15,975	27,531
Reinsurance recoverables	157,985	244,894
Other assets (including VIE other assets of $105,903 and $112,426)	333,566	323,320
Total assets	6,656,765	7,620,887
Liabilities
Unearned premiums	637,372	686,364
Reserve for losses and loss adjustment expenses (“LAE”)	3,310,902	3,596,735
Reserve for premium deficiency	3,644	10,736
Long-term debt	818,584	964,788
VIE debt—at fair value (including $0 and $9,514 of non-recourse debt)	228,240	520,114
Derivative liabilities (including VIE derivative liabilities of $19,501 and $19,226)	126,006	723,579
Accounts payable and accrued expenses (including VIE accounts payable of $530 and $837)	349,726	258,791
Total liabilities	5,474,474	6,761,107
Stockholders’ equity
Common stock: par value $.001 per share; 325,000,000 shares authorized; 150,666,446 and 150,507,853 shares issued at December 31, 2011 and December 31, 2010, repectively; 133,199,159 and 133,049,213 shares outstanding at December 31, 2011 and December 31, 2010, respectively	151	150
Treasury stock, at cost: 17,467,287 and 17,458,640 shares at December 31, 2011 and December 31, 2010, respectively	(892,052)	(892,012)
Additional paid-in capital	1,966,565	1,963,092
Retained earnings (deficit)	96,227	(204,926)
Accumulated other comprehensive income (loss)	11,400	(6,524)
Total stockholders’ equity	1,182,291	859,780
Total liabilities and stockholders’ equity	$ 6,656,765	$ 7,620,887

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Note 15 - Statutory Information Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Statutory Accounting Practices [Line Items]

Risk To Capital Calculation [Table Text Block]

Radian Guaranty's risk-to-capital calculation appears in the table below.

	December 31
	2011		2010
($ in millions)
Risk in force, net (1)	$	18,095.7	$	22,177.7
Statutory policyholders' surplus	$	843.2	$	1,295.7
Statutory contingency reserve	—		19.6
Statutory policyholders' position	$	843.2	$	1,315.3
Risk-to-capital	21.5:1		16.8:1

_______________________

(1) Risk in force is net of risk ceded through reinsurance contracts and also excludes risk in force on defaulted loans.

Radian Guaranty [Member]

Statutory Accounting Practices [Line Items]

Statutory Accounting Practices Disclosure [Table Text Block]

Radian Guaranty's statutory net loss, statutory policyholders' surplus and contingency reserve as of or for the periods indicated were as follows:

	As of and for the Year Ended December 31,
(In millions)	2011			2010			2009
Statutory net loss	$	(545.1	)	$	(535.2	)	$	(211.8	)
Statutory policyholders' surplus	843.2			1,295.7			741.3
Contingency reserve	—			19.6			770.5

Radian Insurance [Member]

Statutory Accounting Practices [Line Items]

Statutory Accounting Practices Disclosure [Table Text Block]

Radian Insurance's statutory net income, statutory policyholders' surplus and contingency reserve as of and for the years ended December 31 were as follows:

(In millions)	2011		2010		2009
Statutory net income	$	4.3	$	43.9	$	19.9
Statutory policyholders' surplus	156.8		151.7		108.9
Contingency reserve	—		1.5		—

Radian Mortgage Assurance [Member]

Statutory Accounting Practices [Line Items]

Statutory Accounting Practices Disclosure [Table Text Block]

Radian Mortgage Assurance's statutory net (loss) income and statutory policyholders' surplus as of and for the years ended December 31 were as follows:

(In millions)	2011			2010		2009
Statutory net (loss) income	$	(0.6	)	$	7.4	$	(17.9	)
Statutory policyholders' surplus	16.5			17.1		9.6

CMAC Of Texas [Member]

Statutory Accounting Practices [Line Items]

Statutory Accounting Practices Disclosure [Table Text Block]

CMAC of Texas's statutory net loss and statutory policyholders' surplus as of and for the years ended December 31 were as follows:

(In millions)	2011			2010			2009
Statutory net loss	$	(46.6	)	$	(194.7	)	$	(67.0	)
Statutory policyholders' surplus	26.2			40.8			122.5

Radian Mortgage Insurance [Member]

Statutory Accounting Practices [Line Items]

Statutory Accounting Practices Disclosure [Table Text Block]

Radian Mortgage Insurance's statutory net loss and statutory policyholders' surplus as of and for the years ended December 31 were as follows:

(In millions)	2011			2010			2009
Statutory net loss	$	(11.1	)	$	(60.6	)	$	(34.2	)
Statutory policyholders' surplus	20.0			10.1			0.3

Radian Asset Assurance [Member]

Statutory Accounting Practices [Line Items]

Statutory Accounting Practices Disclosure [Table Text Block]

Radian Asset Assurance's statutory net income, statutory policyholders' surplus and contingency reserve as of and for the years ended December 31 were as follows:

(In millions)	2011		2010		2009
Statutory net income	$	69.1	$	58.0	$	42.8
Statutory policyholders' surplus	973.9		1,048.6		1,059.1
Contingency reserve	421.4		392.6		366.1

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Note 14 - Income Taxes Schedule of Components of Income Tax Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Components of Income Tax Provision [Line Items]
Current Income Tax Expense (Benefit)	$ 59,604	$ (155,219)	$ (39,057)
Deferred Income Tax Expense (Benefit)	6,758	381,408	(55,344)
Provision (benefit) for income taxes	$ 66,362	$ 226,189	$ (94,401)

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Note 16 - Share-Based and Other Compensation Plans (Phantom Stock) (Details) (2008 Equity Plan [Member], Phantom Stock [Member])	Dec. 31, 2011
2008 Equity Plan [Member] | Phantom Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement, Dividend Equivalent Shares Accrued	6,030

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Statement Changes Stockholder Equity Parentheticals (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Unrealized foreign currency translation adjustment, tax	$ 0	$ 1,737	$ 2,491
Foreign currency translation reclassification adjustment for net gains included in net loss, tax	11,367	280	0
Net foreign currency translation adjustment, tax	11,367	1,457	2,491
Unrealized holding gains arising during period, tax	0	22,165	107,511
Reclassification adjustment for net gains included in net loss, tax	15,520	2,036	29,363
Net unrealized gain on investments, tax	$ 15,520	$ 24,201	$ 78,148

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Note 13 - Long-Term Debt Schedule of Liability and Equity Components of Convertible Debt (Details) (USD $)	81 Months Ended							12 Months Ended	81 Months Ended
	Aug. 16, 2017 Convertible Debt [Member]	Nov. 01, 2010 Convertible Debt [Member]	Dec. 31, 2011 3.00% Convertible Senior Notes due 2017 [Member]		Dec. 31, 2010 3.00% Convertible Senior Notes due 2017 [Member]		Nov. 01, 2010 3.00% Convertible Senior Notes due 2017 [Member]	Dec. 31, 2011 3.00% Convertible Senior Notes due 2017 [Member] Convertible Debt [Member]	Aug. 16, 2017 3.00% Convertible Senior Notes due 2017 [Member] Convertible Debt [Member]
Schedule of Liability and Equity Components of Convertible Debt [Line Items]
Principal amount of convertible debt in liabilities			$ 450,000,000		$ 450,000,000		$ 450,000,000
Less: debt discount, net (1)			(133,502,000)	[1]	(149,633,000)	[1]
Net carrying amount of convertible debt in liabilities			316,498,000		300,367,000
Equity component (net of tax impact) (2)			65,679,000	[2]	65,701,000	[2]
Debt Instrument, Convertible, Conversion Ratio	85.5688
Debt Instrument, Convertible, Conversion Price	$ 11.69
Maximum Stock Price Per Share Included In Capped Call Transaction	$ 14.11
Cash Paid To Purchase Capped Call Transactions		46,100,000
Convertible Debt Trigger Based on Common Stock Price								130.00%
Debt Conversion, Converted Instrument, Amount									$ 1,000
Convertible Debt Trigger Based on Trading Price Per Share of Debt								98.00%

[1] Included within long-term debt and is being amortized over the life of the convertible notes.

[2] Included within additional paid-in capital, net of capped call transactions and related issuance costs.

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Note 5 - Fair Value of Financial Instruments Fair Value, Option, Quantitative Disclosures (Details) (USD $)																12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Collateralized Debt Obligations [Member]	Dec. 31, 2011 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Consolidated Financial Guaranty Insurance Contracts [Member]		Dec. 31, 2010 Consolidated Financial Guaranty Insurance Contracts [Member]		Dec. 31, 2011 Consolidated Financial Guaranty Insurance Contracts [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 NIMS VIEs [Member]		Dec. 31, 2010 NIMS VIEs [Member]		Dec. 31, 2011 NIMS VIEs [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2010 NIMS VIEs [Member] Fair Value, Inputs, Level 3 [Member]	Dec. 31, 2011 Consolidated Committed Preferred Custodial Trust Securities [Member]		Dec. 31, 2010 Consolidated Committed Preferred Custodial Trust Securities [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Net Par Outstanding Subject To Recapture or Terminatino, Percentage				90.00%
Portion of Percentage of Net Par Outstanding With Option to Terminate That Have Fair Value Caps At Zero				19.00%
Percent of Corporate CDO Deals With Minimum Fair Premium Amount				43.00%
Percent of Aggregate Net Par Outstanding for Non Corporate CDOs Whose Contractual Premiums are Subject to Change Due to Right of Termination				89.00%
Percent of Aggregate Net Par Outstanding Non Corporate CDOs Subject to Termination With Fair Value Cap				26.00%
Net par outstanding on CDO of ABS transaction				$ 450,600,000			$ 580,000,000	[1]	$ 584,600,000	[1]	$ 129,400,000	$ 18,500,000	[2]	$ 135,800,000	[2]	$ 18,000,000	$ 135,600,000	$ 150,000,000	[3]	$ 150,000,000	[3]
Derivative Assets	17,212,000	26,212,000					0		0			1,600,000		10,900,000
VIE debt	228,240,000	520,114,000	296,080,000				218,800,000		379,100,000		103,700,000	9,400,000		141,000,000
Variable Interest Entity Accounts Payable And Other Liabilities	530,000	837,000									300,000
Number Of Consolidated Other Financial Guaranty Transactions					2	2	2				2
Change in Impact of Non Performance Risk on Fair Value of Financial Instruments																$ 10,200,000	$ 6,300,000
Number of Committed Preferred Custodial Trusts																		3

[1] The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which include an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

[2] The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which includes an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

[3] The maximum exposure is based on our carrying amounts of the investments.

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Note 14 - Income Taxes Income Tax Details (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2011
Operating Loss Carryforwards [Line Items]
Accrued Income Taxes, Current		$ 137,800,000
Income Taxes Receivable, Current		5,800,000
Deferred Tax Assets, Operating Loss Carryforwards, Domestic		1,900,000,000
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	26,661,000	26,884,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	24,499,000	31,825,000
Taxable Income (Loss) For Tax Purposes From Cancellation Of Debt		728,000,000
Deferred Tax Assets (Liabilities), Net	879,400,000	813,700,000
Valuation Allowance, Amount	851,900,000	797,700,000	10,400,000
Deferred tax assets, net	27,531,000	15,975,000
Valuation Allowance, Deferred Tax Asset, Change in Amount	841,500,000	54,200,000
Valuation Allowances and Reserves, Charged to Other Accounts		$ 3,600,000
Percentage of Stock Ownership Needed to Be Included in Calculation of Change in Control Under Section 382 of Internal Revenue Code of 1986		5.00%
Number of Basis Point Increase in Ownership Over Three Year Period Needed By the Entity's Five Percent Shareholders		50
Number of Years for Rolling Year Calculation of Change in Control Defined Under Section 382 of Internal Revenue Code of 1986		3 years

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Note 5 - Fair Value of Financial Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Impact of Non-Performance Risk Fair Value Disclosure [Table Text Block]

The following table quantifies the impact of our non-performance risk on our derivative assets and liabilities (in aggregate by type, excluding assumed financial guaranty derivatives) and VIE liabilities presented in our consolidated balance sheets. Radian Group's five-year CDS spread is presented as an illustration of the market's view of our non-performance risk; the CDS spread actually used in the valuation of specific fair value liabilities is typically based on the remaining term of the instrument.

(In basis points)	December 31, 2011	December 31, 2010	December 31, 2009	December 31, 2008
Radian Group's five-year CDS spread	2,732	465	1,530	2,466

(In millions)	Fair Value Liability before Consideration of Radian Non-Performance Risk December 31, 2011		Impact of Radian Non-Performance Risk December 31, 2011		Fair Value Liability Recorded December 31, 2011
Product
Corporate CDOs	$	463.1	$	458.0	$	5.1
Non-Corporate CDO-related (1)	1,520.2		1,405.3		114.9
NIMS-related (2)	17.4		9.6		7.8
Total	$	2,000.7	$	1,872.9	$	127.8

(In millions)	Fair Value Liability before Consideration of Radian Non-Performance Risk December 31, 2010		Impact of Radian Non-Performance Risk December 31, 2010		Fair Value Liability Recorded December 31, 2010
Product
Corporate CDOs	$	387.1	$	281.5	$	105.6
Non-Corporate CDO-related (1)	1,696.2		934.1		762.1
NIMS-related (2)	134.1		4.8		129.3
Total	$	2,217.4	$	1,220.4	$	997.0

________________

(1) Includes the net liability recorded within derivative assets and derivative liabilities, and the net liability recorded within VIE debt and other financial statement line items for consolidated VIEs.

(2) Includes NIMS VIE debt and NIMS derivative assets.

Radian Group's five-year CDS spread at December 31, 2011, implies a market view that there is an 84% probability that Radian Group will default in the next five years as compared to a 32% implied probability of default at December 31, 2010. The cumulative impact attributable to the market's perception of our non-performance risk increased by $652.5 million during 2011, as presented in the table above. This increase was primarily the result of the widening of Radian Group's CDS spreads during this period.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2011:

(In millions)	Level I		Level II		Level III		Total
Assets and Liabilities at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	386.9	$	723.6	$	—	$	1,110.5
State and municipal obligations	—		985.0		62.5		1,047.5
Money market instruments	723.2		—		—		723.2
Corporate bonds and notes	—		700.5		—		700.5
RMBS	—		884.7		45.5		930.2
CMBS	—		190.4		35.4		225.8
CDO	—		—		5.5		5.5
Other ABS	—		97.0		2.9		99.9
Foreign government securities	—		102.9		—		102.9
Hybrid securities	—		341.5		4.8		346.3
Equity securities (1)	116.0		152.4		0.8		269.2
Other investments (2)	—		151.6		6.8		158.4
Total Investments at Fair Value (3)	1,226.1		4,329.6		164.2		5,719.9
Derivative Assets	—		0.2		17.0		17.2
Other Assets (4)	—		—		104.0		104.0
Total Assets at Fair Value	$	1,226.1	$	4,329.8	$	285.2	$	5,841.1
Derivative Liabilities	$	—	$	—	$	126.0	$	126.0
VIE Debt (5)	—		—		228.2		228.2
Total Liabilities at Fair Value	$	—	$	—	$	354.2	$	354.2

______________________

(1) Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

(2) Comprising short-term commercial paper within CPS trusts ($150.0 million) and short-term CDs ($1.6 million) included within Level II, and lottery annuities ($1.6 million) and TruPs held by consolidated VIEs ($5.2 million) included within Level III.

(3) Does not include fixed-maturities held to maturity ($2.6 million) and other invested assets ($61.0 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

(4) Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

(5) Comprising consolidated debt related to NIMS VIEs ($9.4 million) and amounts related to financial guaranty VIEs ($218.8 million).

The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2010:

(In millions)	Level I		Level II		Level III		Total
Assets and Liabilities at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	1,075.0	$	731.4	$	—	$	1,806.4
State and municipal obligations	—		1,159.7		23.2		1,182.9
Money market instruments	310.9		—		—		310.9
Corporate bonds and notes	—		1,060.4		—		1,060.4
RMBS	—		913.5		52.5		966.0
CMBS	—		173.6		23.0		196.6
CDO	—		—		2.4		2.4
Other ABS	—		131.1		3.3		134.4
Foreign government securities	—		83.5		—		83.5
Hybrid securities	—		318.9		—		318.9
Equity securities (1)	168.4		168.6		2.9		339.9
Other investments (2)	—		150.0		4.6		154.6
Total Investments at Fair Value (3)	1,554.3		4,890.7		111.9		6,556.9
Derivative Assets	—		—		26.2		26.2
Other Assets (4)	—		—		109.7		109.7
Total Assets at Fair Value	$	1,554.3	$	4,890.7	$	247.8	$	6,692.8
Derivative Liabilities	$	—	$	—	$	723.6	$	723.6
VIE Debt (5)	—		—		520.1		520.1
Total Liabilities at Fair Value	$	—	$	—	$	1,243.7	$	1,243.7

______________________

(1) Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

(2) Comprising short-term commercial paper within CPS trusts included within Level II, and lottery annuities ($2.6 million) and TruPs held by consolidated VIEs ($2.0 million) included within Level III.

(3) Does not include fixed-maturities held to maturity ($10.8 million), certain short-term investments ($1.6 million), primarily invested in CDs and time deposits, and other invested assets ($59.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

(4) Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

(5) Comprising consolidated debt related to NIMS VIEs ($141.0 million) and amounts related to financial guaranty VIEs ($379.1 million) that required consolidation as of January 1, 2010, under the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

Fair Value, Assets and Liabilites Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2011:

(In millions)	Beginning Balance at January 1, 2011		Realized and Unrealized Gains (Losses) Recorded in Earnings  (1)			Purchases		Sales		Issuances		Settlements			Transfers Into (Out of) Level III (2)			Ending Balance at December 31, 2011
Investments:
State and municipal obligations	$	23.2	$	1.2		$	39.1	$	0.6	$	—	$	0.4		$	—		$	62.5
RMBS	52.5		(3.1		)	—		—		—		3.9			—			45.5
CMBS	23.0		12.4			—		—		—		—			—			35.4
CDO	2.4		2.7			—		—		—		(0.4		)	—			5.5
Other ABS	3.3		(0.4		)	—		—		—		—			—			2.9
Hybrid securities	—		(0.1		)	0.7		—		—		—			4.2			4.8
Equity securities	2.9		(1.2		)	3.7		1.0		—		—			(3.6		)	0.8
Other investments	4.6		3.2			—		0.7		—		0.3			—			6.8
Total Level III Investments	111.9		14.7			43.5		2.3		—		4.2			0.6			164.2
NIMS derivative assets	11.7		(2.2		)	0.3		—		—		7.7			(0.5		)	1.6
Other assets	109.7		21.5			—		—		—		27.2			—			104.0
Total Level III Assets	$	233.3	$	34.0		$	43.8	$	2.3	$	—	$	39.1		$	0.1		$	269.8
Derivative liabilities, net	$	709.1	$	629.0		$	—	$	—	$	—	$	(30.5	)	$	—		$	110.6
VIE debt	520.1		138.5			—		—		—		153.4			—			228.2
Total Level III Liabilities, net	$	1,229.2	$	767.5		$	—	$	—	$	—	$	122.9		$	—		$	338.8

______________________

(1) Includes unrealized gains relating to assets and liabilities still held as of December 31, 2011, as follows: $12.0 million for investments, $9.4 million for other assets, $579.1 million for derivative liabilities, and $158.5 million for VIE debt.

(2) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

    At December 31, 2011, our total Level III assets approximated 4.9% of total assets measured at fair value and our total Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as Level III.

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2010:

(In millions)	Beginning Balance at January 1, 2010		VIE Consolidation at January 1, 2010 (1)			Realized and Unrealized Gains(Losses) Recorded in Earnings (2)			Purchases		Sales			Issuances			Settlements					Transfers Into (Out of) Level III  (3)			Ending Balance at December 31, 2010
Investments:
State and municipal obligations	$	24.4	$	—		$	0.1		$	1.4	$	—		$	—		$	2.7				$	—		$	23.2
RMBS	—		44.3			19.6			—		—			—			11.4					—			52.5
CMBS	—		23.8			(0.8		)	—		—			—			—					—			23.0
CDO	—		3.8			(1.8		)	—		(0.4		)	—			—					—			2.4
Other ABS	—		3.5			(0.2		)	—		—			—			—					—			3.3
Hybrid securities	0.6		—			—			—		—			—			—					(0.6		)	—
Equity securities	1.7		—			0.2			0.4		0.1			—			—					0.7			2.9
Other investments	3.8		3.7			(1.6		)	—		1.0			(0.3		)	—					—			4.6
Total Level III Investments	30.5		79.1			15.5			1.8		0.7			(0.3		)	14.1					0.1			111.9
NIMS and CPS derivative assets	44.7		—			(7.7		)	1.3		0.1			(0.1		)	26.4			(4	)	—			11.7
Other assets	—		119.7			18.3			—		—			—			28.3					—			109.7
Total Level III Assets	$	75.2	$	198.8		$	26.1		$	3.1	$	0.8		$	(0.4	)	$	68.8				$	0.1		$	233.3
Derivative liabilities, net	$	214.9	$	(51.8	)	$	551.2		$	—	$	—		$	—		$	(5.2	)			$	—		$	709.1
VIE debt	296.1		253.5			213.5			—		—			—			(243.0		)	(5	)	—			520.1
Total Level III Liabilities, net	$	511.0	$	201.7		$	764.7		$	—	$	—		$	—		$	(248.2	)			$	—		$	1,229.2

______________

(1) Represents the impact of our adoption of the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

(2) Includes unrealized gains (losses) relating to assets and liabilities still held as of December 31, 2010, as follows: $12.6 million for investments, $(1.4) million for NIMS derivative assets, $4.0 million for other assets, $(588.1) million for derivative liabilities, and $(165.7) million for VIE debt.

(3) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

(4) Includes impact of consolidation of VIE from CPS Trust I as of June 30, 2010, in the amount of $27.1 million.

(5) Includes impact of consolidation of VIE from CPS Trust I in the amount of $11.1 million. Offsetting this increase was $186.6 million related to NIMS purchases, $36.3 million related to financial guaranty VIE debt paydowns, and $31.2 million for CPS VIE debt purchases.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated:

	December 31, 2011				December 31, 2010
(In millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Fixed-maturities held to maturity	$	2.6	$	2.7	$	10.8	$	11.4
Short-term investments (carried at cost)	—		—		1.6		1.6
Other invested assets	61.0		62.8		59.6		58.4
Liabilities:
Long-term debt	818.6		471.3		964.8		1,082.5
Non-derivative financial guaranty liabilities	342.3		425.7		406.1		531.1

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Schedule IV Reinsurance (Details) (Reinsurance Premiums for Insurance Companies, by Product Segment [Domain], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Reinsurance Premiums for Insurance Companies, by Product Segment [Domain]
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]
Reinsurance Premiums for Insurance Companies, by Product Segment, Gross Amount	$ 762,428	$ 891,167	$ 919,778
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Ceded to Other Companies	38,740	94,497	139,626
Reinsurance Premiums for Insurance Companies, by Product Segment, Amount Assumed from Other Companies	32,337	29,063	45,749
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount	$ 756,025	$ 825,733	$ 825,901
Reinsurance Premiums for Insurance Companies, by Product Segment, Percentage of Amount Assumed to Net	4.28%	3.52%	5.54%

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Note 6 - VIEs Put Options On CPS (Details) (USD $)	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009	Jun. 30, 2010	Sep. 30, 2003
Balance Sheet Related Disclosures
Short-term Investments	$ 1,261,703,000		$ 1,537,498,000
Statement of Operations
Net investment income	163,520,000		178,760,000		214,190,000
Change in fair value of derivative instruments, gain (loss)	628,395,000		(558,712,000)		99,958,000
Net gains (losses) on other financial instruments	193,329,000		(211,681,000)		(88,569,000)
Other operating expenses	175,810,000		191,942,000		203,770,000
Consolidated Committed Preferred Custodial Trust Securities [Member]
Balance Sheet Related Disclosures
Short-term Investments	150,000,000		150,000,000
Maximum exposure (1)	150,000,000	[1]	150,000,000	[1]
Statement of Operations
Net investment income	200,000		0
Change in fair value of derivative instruments, gain (loss)	0		200,000
Net gains (losses) on other financial instruments	0		(25,700,000)
Other operating expenses	400,000		400,000
CPS Additional Disclosure
Number of Committed Preferred Custodial Trusts	3
Net cash inflow (outflow) for VIEs	(200,000)		(83,400,000)
Unconsolidated Committed Preferred Custodial Trust Securities
Statement of Operations
Net investment income	0		0
Change in fair value of derivative instruments, gain (loss)	0		(6,300,000)		(56,200,000)
Net gains (losses) on other financial instruments	0		0
Other operating expenses	0		0
CPS Additional Disclosure
Number of Committed Preferred Custodial Trusts							3
Committed Preferred Custodial Trust Securities							150,000,000
Committed Preferred Custodial Trust Securities Held By Each Trust							50,000,000
Number Of Committed Preferred Custodial Trusts Consolidated During 2009					2
Variable Interest Entity, Initial Consolidation, Gain (Loss)			(13,900,000)
Number Of Committed Preferred Custodial Trusts Not Consolidated Prior To The Second Quarter Of The Prior Year						1
Net cash inflow (outflow) for VIEs	$ 0		$ (900,000)		$ (3,700,000)

[1] The maximum exposure is based on our carrying amounts of the investments.

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Note 15 - Statutory Information Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Statutory Information [Abstract]

Statutory Information [Text Block]

Statutory Information

Radian Group serves as the holding company for our insurance subsidiaries, through which we conduct the business of our mortgage insurance and financial guaranty business segments. These insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments in the various states where our insurance subsidiaries are domiciled or licensed to transact business. These regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries' statutory financial position and results of operations, as described below.

The ability of Radian Guaranty, Radian Mortgage Assurance and Radian Insurance to pay dividends on their common stock is restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under Pennsylvania's insurance laws, dividends and other distributions may only be paid out of an insurer's positive unassigned surplus, measured as of the end of the prior fiscal year, unless the Pennsylvania Insurance Commissioner approves the payment of dividends or other distributions from another source. Radian Guaranty, Radian Mortgage Assurance and Radian Insurance had negative unassigned surplus at December 31, 2011, of $767.7 million, $162.5 million and $379.1 million, respectively, compared to negative unassigned surplus of $168.6 million, $161.9 million and $384.1 million, respectively, at December 31, 2010. In addition, in the event an insurer had positive unassigned surplus as of the end of the prior fiscal year, without the prior approval of the Pennsylvania Insurance Commissioner, such insurer only may pay dividends or other distributions during any 12-month period in an aggregate amount less than or equal to the greater of (i) 10% of the preceding year-end statutory policyholders' surplus, or (ii) the preceding year's statutory net income. Due to the negative unassigned surplus at the end of 2011, no dividends or other distributions can be paid from Radian Guaranty, Radian Mortgage Assurance or Radian Insurance in 2012, without approval from the Pennsylvania Insurance Commissioner. Neither Radian Guaranty, Radian Mortgage Assurance nor Radian Insurance paid any dividends in 2011 or 2010.

Radian Guaranty's statutory net loss, statutory policyholders' surplus and contingency reserve as of or for the periods indicated were as follows:

	As of and for the Year Ended December 31,
(In millions)	2011			2010			2009
Statutory net loss	$	(545.1	)	$	(535.2	)	$	(211.8	)
Statutory policyholders' surplus	843.2			1,295.7			741.3
Contingency reserve	—			19.6			770.5

Radian Guaranty's risk-to-capital calculation appears in the table below.

	December 31
	2011		2010
($ in millions)
Risk in force, net (1)	$	18,095.7	$	22,177.7
Statutory policyholders' surplus	$	843.2	$	1,295.7
Statutory contingency reserve	—		19.6
Statutory policyholders' position	$	843.2	$	1,315.3
Risk-to-capital	21.5:1		16.8:1

_______________________

(1) Risk in force is net of risk ceded through reinsurance contracts and also excludes risk in force on defaulted loans.

The increase in Radian Guaranty's risk-to-capital ratio in 2011 was primarily due to Radian Guaranty's statutory net loss, which was partially offset by the effect of excess-of-loss reinsurance agreements between Radian Guaranty and its subsidiary, Radian Insurance, under which Radian Guaranty transferred approximately $2.0 billion and $2.5 billion of RIF to Radian Insurance in the second and fourth quarters of 2011, respectively. Radian Group contributed $30 million and $100 million to Radian Guaranty in November 2011 and February 2012, respectively. The February capital contribution was accrued for in Radian Guaranty's statutory policyholders' surplus at December 31, 2011. In December 2011, Radian Group contributed its ownership interest in Radian Mortgage Assurance to Radian Guaranty, which added approximately $17 million of capital. In addition, in December 2011, Radian Guaranty sold its ownership interest in EFSG to Radian Group for approximately $6 million. These transactions were done in order to benefit Radian Guaranty's Statutory RBC Requirements in certain states, as discussed below. Radian Group contributed a total of $322 million to Radian Guaranty in 2010.

Radian Insurance is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. Radian Insurance's statutory net income, statutory policyholders' surplus and contingency reserve as of and for the years ended December 31 were as follows:

(In millions)	2011		2010		2009
Statutory net income	$	4.3	$	43.9	$	19.9
Statutory policyholders' surplus	156.8		151.7		108.9
Contingency reserve	—		1.5		—

Radian Mortgage Assurance is required to maintain statutory-basis capital and surplus of $1.125 million. Radian Group and Radian Mortgage Assurance are parties to a guaranty agreement. This agreement provides that Radian Group will make sufficient funds available to Radian Mortgage Assurance to ensure that Radian Mortgage Assurance has a minimum of $5 million of statutory policyholders' surplus every calendar quarter. Radian Mortgage Assurance's statutory net (loss) income and statutory policyholders' surplus as of and for the years ended December 31 were as follows:

(In millions)	2011			2010		2009
Statutory net (loss) income	$	(0.6	)	$	7.4	$	(17.9	)
Statutory policyholders' surplus	16.5			17.1		9.6

CMAC of Texas' ability to declare dividends on its common stock is restricted by certain provisions of the insurance laws of the State of Texas, its state of domicile. The insurance laws of the State of Texas limit the maximum amount of dividends that may be paid from positive unassigned surplus by an insurer without prior approval by the Texas Insurance Commissioner. Under such test, CMAC of Texas may pay dividends during any 12-month period in an amount equal to the greater of (i) 10% of the preceding year-end statutory policyholders' unassigned surplus, or (ii) the preceding year-end statutory net income. In accordance with such restrictions, no dividends may be paid in 2012, without prior regulatory approval.

CMAC of Texas is required to maintain a minimum statutory surplus of $20 million to remain an authorized reinsurer in all states. Radian Group and Radian Guaranty made contributions totaling approximately $23 million to CMAC of Texas in October 2011, in order to maintain the required minimum statutory capital level.

Radian Group's U.S. Consolidated federal income tax returns, which include CMAC of Texas's federal tax returns, were under examination by the IRS for tax years 2000 through 2007. We are currently contesting proposed adjustments resulting from the IRS examination of these tax years. Effective December 31, 2011, Radian Group and CMAC of Texas entered into an Assumption and Indemnification Agreement with regard to these proposed adjustments. Through this agreement, Radian Group agreed to indemnify CMAC of Texas for any tax payments ultimately due to the IRS for the proposed adjustments, which relate to the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of residual interests in REMICs currently held by CMAC of Texas. This indemnification was in lieu of an immediate capital contribution that otherwise would have been needed from Radian Group to CMAC of Texas, based on an estimate for this potential liability, in order for CMAC of Texas to maintain its minimum statutory surplus requirements. There remains significant uncertainty with regard to the amount and timing of any resolution with the IRS. See Note 14 for further information regarding the examination by the IRS for the 2000 through 2007 tax years.

CMAC of Texas's statutory net loss and statutory policyholders' surplus as of and for the years ended December 31 were as follows:

(In millions)	2011			2010			2009
Statutory net loss	$	(46.6	)	$	(194.7	)	$	(67.0	)
Statutory policyholders' surplus	26.2			40.8			122.5

Radian Mortgage Insurance Inc.'s ("Radian Mortgage Insurance") ability to declare dividends on its common stock is restricted by certain provisions of the insurance laws of the state of Arizona, its state of domicile. The insurance laws of the state of Arizona limit the maximum amount of dividends that may be paid from positive unassigned surplus by an insurer without prior approval by the Arizona Insurance Department. Under such test, Radian Mortgage Insurance may pay dividends during any 12-month period in an amount equal to the lesser of (i) 10% of the preceding year-end statutory policyholders' unassigned surplus, or (ii) the preceding year-end statutory net investment income. In accordance with these restrictions, no dividends may be paid in 2012, since the company has negative statutory unassigned surplus at December 31, 2011.

As a mortgage guaranty insurer, Radian Mortgage Insurance is required under the insurance laws of Arizona to maintain a minimum policyholder position (“MPP”) calculated for each loan it insures based on the face amount, loan-to-value ratio and coverage percentage for the loan. The total calculated MPP must be less than Radian Mortgage Insurance's total statutory policyholders' position, which is defined as contingency reserve plus surplus as regards to policyholders, or Radian Mortgage Insurance may be required to cease transacting new business until such time that its MPP is greater than its total statutory policyholders' position. At December 31, 2011, Radian Mortgage Insurance policyholders' position was $20.0 million, which is the minimum amount required to remain an authorized reinsurer in all states. Total MPP was $5.4 million and, as such, Radian Mortgage Insurance is currently in compliance with minimum statutory requirements. Radian Mortgage Insurance required capital contributions totaling approximately $10.5 million in 2011, in order to maintain minimum policyholders' surplus of $20.0 million.

Radian Mortgage Insurance's statutory net loss and statutory policyholders' surplus as of and for the years ended December 31 were as follows:

(In millions)	2011			2010			2009
Statutory net loss	$	(11.1	)	$	(60.6	)	$	(34.2	)
Statutory policyholders' surplus	20.0			10.1			0.3

Radian Asset Assurance's ability to pay dividends to its parent, Radian Guaranty, is restricted by certain provisions of the insurance laws of New York, its state of domicile. Under the New York insurance laws, Radian Asset Assurance may only pay dividends from earned surplus. Without the prior approval from the New York Superintendent of Financial Services, Radian Asset Assurance can only pay a dividend, which when totaled with all other dividends declared or distributed on it during the preceding 12 months, is the lesser of 10% of its surplus to policyholders as shown by its last statement on file with the New York Superintendent of Financial Services, or 100% of adjusted net investment income. In June 2011, 2010 and 2009, Radian Asset Assurance paid a dividend of $53.4 million, $69.2 million and $99.7 million, respectively to Radian Guaranty. We expect that Radian Asset Assurance will continue to have the capacity to pay ordinary dividends to Radian Guaranty in 2012 and 2013, although these dividends are expected to be at or below the 2011 level. As of December 31, 2011, Radian Asset Assurance maintained claims paying resources of $2.2 billion, including statutory surplus of $973.9 million.

New York insurance law requires financial guaranty insurers to maintain minimum policyholders' surplus of $65 million. When added to the minimum policyholders' surplus of $1.4 million separately required for the other lines of insurance that it is licensed to write, our financial guaranty insurance subsidiary is required to have an aggregate minimum policyholders' surplus of $66.4 million. Radian Asset Assurance's statutory net income, statutory policyholders' surplus and contingency reserve as of and for the years ended December 31 were as follows:

(In millions)	2011		2010		2009
Statutory net income	$	69.1	$	58.0	$	42.8
Statutory policyholders' surplus	973.9		1,048.6		1,059.1
Contingency reserve	421.4		392.6		366.1

New York insurance law establishes single risk limits applicable to all obligations issued by a single entity and backed by a single revenue source. Under the limit applicable to municipal bonds, the insured average annual debt service for a single risk, net of reinsurance and collateral, may not exceed 10% of the sum of the insurer's policyholders' surplus and contingency reserves. In addition, insured principal of municipal bonds attributable to any single risk, net of reinsurance and collateral, is limited to 75% of the insurer's policyholders' surplus and contingency reserves. Additional single risk limits, which generally are more restrictive than the municipal bond single risk limit, are also specified for several other categories of insured obligations.

We and our insurance subsidiaries are subject to comprehensive, detailed regulation, principally designed for the protection of our insured policyholders rather than for the benefit of investors, by the insurance departments in the various states where our insurance subsidiaries are licensed to transact business. Insurance laws vary from state to state, but generally grant broad supervisory powers to state agencies or officials to examine insurance companies and enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company's ability to write new business.

The GSEs and state insurance regulators impose various capital requirements on our insurance subsidiaries. These include risk-to-capital ratios, risk-based capital measures and surplus requirements that limit the amount of insurance that each of our insurance subsidiaries may write. The GSEs and our insurance regulators possess significant discretion with respect to our insurance subsidiaries. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. See Note 1 above.

We prepare our statutory financial statements in accordance with the accounting practices required or permitted by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required statutory accounting practices include a variety of publications of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and general administrative rules.

The differences between the statutory financial statements and financial statements presented on a GAAP basis represent differences between GAAP and Statutory Accounting Principles (“STAT”) for the following reasons:

(a) Under STAT, mortgage guaranty insurance companies are required each year to establish a contingency reserve equal to 50% of premiums earned in such year. Such amount must be maintained in the contingency reserve for 10 years, after which time it is released to unassigned surplus. Prior to 10 years, the contingency reserve may be reduced with regulatory approval to the extent that losses in any calendar year exceed 35% of earned premiums for such year.

(b) In accordance with New York insurance law, financial guaranty insurance companies are required to establish a contingency reserve in the amount prescribed by legislation. Such legislation requires that, for financial guaranty policies, each insurer must establish a contingency reserve equal to the greater of 50% of premiums written or a stated percentage of the principal guaranteed, ratably over 15 to 20 years dependent upon the category of obligation insured. Contingency reserves may be discontinued if the total reserve established for all categories of obligations exceeds the sum of the stated percentages for such categories multiplied by the unpaid principal guaranteed. The contingency reserve may be released with regulatory approval to the extent that losses in any calendar year exceed a pre-determined percentage of earned premiums for such year, with the percentage threshold dependent upon the category of obligation insured. Such reserves may also be released, subject to regulatory approval in certain instances, upon demonstration that the reserve amount is excessive in relation to the outstanding obligations. Reinsurers are required to establish a contingency reserve equal to their proportionate share of the reserve established by the ceding company. Also under STAT, case reserves are required to be established in the year in which a default occurs based on the guarantor's best estimate of ultimate loss payment, rather than when the probability weighted expected net cash out flows exceed unearned premium reserves.

(c) Under STAT, insurance policy acquisition costs are charged against operations in the year incurred. Under GAAP, such costs, other than those incurred in connection with the origination of derivative contracts, are deferred and amortized.

(d) STAT financial statements only include a provision for current income taxes as a component of net income. Deferred taxes, subject to certain limitations set forth in Statement of Statutory Accounting Principles (“SSAP”) 10R, are recorded in the STAT balance sheets with any changes thereto recognized via a change in statutory surplus. The NAIC adopted SSAP No. 101 effective January 1, 2012. Under SSAP No. 101, the benefit to statutory capital allowed for certain deferred tax assets will be eliminated if the reporting entity does not meet the minimum capital and reserve requirements for the state of domicile. The company does not anticipate a material impact to overall statutory capital as a result of the adoption of SSAP No. 101.

(e) Under STAT, investment-grade fixed-maturity investments are valued at amortized cost, and below investment-grade securities are carried at the lower of amortized cost or market value. Under GAAP, those investments that the statutory insurance entities do not have the ability or intent to hold to maturity are considered to be either available for sale or trading securities, and are recorded at fair value, with the unrealized gain or loss recognized, net of tax, as an increase or decrease to stockholders' equity or current operations, as applicable.

(f) Under STAT, certain assets, designated as non-admitted assets, are charged directly against statutory surplus. Such assets are reflected on our GAAP financial statements.

(g) Under STAT, the accounting standard regarding share-based payment is not applicable, with regard to the recognition and measurement of stock option issuances. Expenses related to stock options are reflected on our GAAP financial statements in accordance with this standard.

(h) Under STAT, the accounting standard regarding accounting for derivative instruments and hedging activities is not applicable, except for changes associated with known credit losses. Any derivative loss payments that are made are included in the provision for losses.

(i) Under STAT, the accounting standard regarding accounting for transfers and servicing of financial assets and extinguishment of liabilities and the accounting standard regarding consolidation of variable interest entities are not applicable.

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Note 6 - VIEs Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

VIEs [Abstract]

Financial Guaranty Insurance Contracts VIEs [Table Text Block]

The following tables provide a summary of our maximum exposure to losses, and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated and unconsolidated financial guaranty insurance contracts and credit derivative VIEs:

	Consolidated				Unconsolidated
	December 31,				December 31,
(In millions)	2011		2010		2011		2010
Balance Sheet:
Trading securities	$	94.5	$	83.2	$	—	$	—
Derivative assets	—		—		4.1		6.0
Premiums receivable	—		—		3.6		5.2
Other assets	105.9		112.4		—		—
Unearned premiums	—		—		3.8		6.0
Reserve for losses and LAE	—		—		7.9		15.0
Derivative liabilities	19.5		19.2		79.5		585.9
VIE debt—at fair value	218.8		379.1		—		—
Accounts payable and accrued expenses	0.5		0.8		—		—
Maximum exposure (1)	580.0		584.6		6,126.3		6,874.2

_______________

(1) The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which include an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

	Consolidated							Unconsolidated
	Year Ended December 31,							Year Ended December 31,
(In millions)	2011			2010			2009	2011			2010			2009
Statement of Operations:
Premiums earned	$	—		$	—		—	$	2.6		$	2.8		$	3.5
Net investment income	8.7			10.9			—	—			—			—
Net gains on investments	14.7			—			—	—			—			—
Change in fair value of derivative        instruments—(loss) gain	(10.7		)	(14.5		)	—	511.2			(478.3		)	—
Net gain (loss) on other financial        instruments	155.5			(143.5		)	—	—			—			—
Provision for losses—increase        (decrease)	—			—			—	(6.0		)	6.5			(4.4		)
Other operating expenses	3.1			3.5			—	—			—			—
Net Cash Inflow (Outflow)	0.8			0.9			—	7.6			(32.1		)	(2.8		)

Net Interest Margin Securities VIES [Table Text Block]

The following tables provide a summary of our maximum exposure to losses, and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated NIMS VIEs:

	December 31,
(In millions)	2011		2010
Balance Sheet:
Derivative assets	$	1.6	$	10.9
VIE debt—at fair value	9.4		141.0
Maximum exposure (1)	18.5		135.8

_______________

(1) The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which includes an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

	Year Ended December 31,
(In millions)	2011			2010			2009
Statement of Operations:
Net premiums earned	$	—		$	—		$	0.8
Net investment income	0.5			0.4			—
Change in fair value of derivative instruments—loss	(1.6		)	(0.9		)	(6.2		)
Net gain (loss) on other financial instruments	4.4			(39.6		)	(99.5		)
Net Cash Outflow	(119.1		)	(187.1		)	(68.1		)

Committed Preferred Custodial Trust Securities VIEs [Table Text Block]

The following tables provide a summary of our maximum exposure to losses, and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated and unconsolidated CPS VIEs:

	Consolidated
	December 31,
(In millions)	2011		2010
Balance Sheet:
Short-term investments	$	150.0	$	150.0
Maximum exposure (1)	150.0		150.0

_____________

(1) The maximum exposure is based on our carrying amounts of the investments.

	Consolidated								Unconsolidated
	Year Ended December 31,								Year Ended December 31,
(In millions)	2011			2010			2009		2011		2010			2009
Statement of Operations:
Net investment income	$	0.2		$	—		$	—	$	—	$	—		$	—
Change in fair value of derivative        instruments—gain (loss)	—			0.2			—		—		(6.3		)	(56.2		)
Net loss on other financial        instruments	—			(25.7		)	—		—		—			—
Other operating expenses	0.4			0.4			—		—		—			—
Net Cash Outflow	(0.2		)	(83.4		)	—		—		(0.9		)	(3.7		)

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Note 14 - Income Taxes Schedule of Components of Deferred Tax Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Components of Deferred Tax Assets and Liabilities [Line Items]
Accrued expenses	$ 41,011	$ 39,295
Unearned premiums	14,327	21,926
Premium deficiency reserves	1,275	3,758
Net operating loss (NOL)	666,407	738,032
Differences in fair value of derivative and other financial instruments	0	347,772
Net unrealized losses on investments	0	15,016
Rescission premium	20,015	15,227
State net operating loss carryforward	31,825	24,499
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	26,884	26,661
Depreciation	5,037	2,227
Deferred Tax Assets, Equity Method Investments	64,544	0
Other	57,127	53,811
Total deferred tax assets	928,452	1,288,224
Deferred policy acquisition cost	48,969	51,916
Deferred Tax Liabilities, Equity Method Investments	0	277,422
Deferred Tax Liabilities, Convertible Debt	32,091	35,164
Deferred Tax Liabilities, Differences in FV of Derivative and Other Financial Instruments	3,591	0
Deferred Tax Liabilities, Unrealized Gains on Trading Securities	4,191	0
Loss reserves	9,744	9,592
Foreign currency	22	11,375
Other	16,169	23,367
Total deferred tax liabilities	114,777	408,836
Valuation allowance	797,700	851,857
Deferred Tax Assets, Net	$ 15,975	$ 27,531

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Note 18 - Commitments and Contingencies Contract Underwriting (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Contract Underwriting [Line Items]
Losses Paid For Contract Underwriting Remedies	$ 7.2
Provision For Contract underwriting Expense	9.3
Reserve For Contract Underwriting Obligations	$ 4.5

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Note 17 - Benefit Plans

12 Months Ended

Dec. 31, 2011

Benefit Plans [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Benefit Plans

We have a nonqualified restoration plan (the “Benefit Restoration Plan” or “BRP”). The BRP is intended to provide additional retirement benefits to each of our employees who is eligible to participate in the Radian Group Inc. Savings Incentive Plan (“Savings Plan”) and whose benefits under the Savings Plan are limited by applicable IRS limits on eligible compensation. The plan: (1) mandates a lump sum form of payment (rather than offering an annuity election) for participants who separate from service after 2007; (2) delinks discretionary contributions under the BRP from discretionary contributions under the Savings Plan; (3) provides us with flexibility to waive the eligibility requirements for discretionary contributions under the BRP to allow otherwise ineligible employees, such as those involuntarily terminated during the year, to participate in such contributions; and (4) conforms the BRP to the final regulations under Section 409A of the IRC.

We surrendered certain of the split-dollar life insurance policies issued under our prior supplemental retirement plan to fund the BRP. Each participant in the prior plan received an initial balance in the BRP equal to the present value of the participant’s benefit under the split-dollar life insurance policy as of January 1, 2007. As of December 31, 2011, we had $8.4 million of split-dollar life insurance policies outstanding. The expense for our BRP for the years ended December 31, 2011, 2010 and 2009 was immaterial to our financial statements.

The assumed discount rate for our benefit plan mentioned above is based on assumptions intended to estimate the actual termination liability of the plan. The discount rate is a composite rate used to approximate the actual termination liability comprised of lump sum payments and an annuity purchase.

The Savings Plan covers substantially all our full-time and all our part-time employees. Participants can contribute up to 25% of their base earnings as pretax contributions up to a maximum amount of $16,500 for 2011. We will match up to 100% of the first 6% of base earnings contributed in any given year. Our expense for matching funds for the years ended December 31, 2011, 2010 and 2009 was $3.5 million, $3.5 million and $3.8 million, respectively.

Some of the benefits of this plan are as follows:

• allow for the immediate eligibility of new hire participation and provide for the automatic enrollment of eligible employees;

• provide for the immediate vesting of matching contributions (including existing unvested matching contributions attributable to prior periods) and the elimination of all restrictions on a participant’s ability to diversify his/her position in matching contributions;

• permit the company to make discretionary, pro rata (based on eligible pay) cash allocations to each eligible participant’s account, with vesting upon completion of three years of service with us; and

• provide certain participants who were active in our pension plan with yearly cash “transition credits” (initially for up to five years, if employed by us during this time) under the Savings Plan equal to a fixed percentage of their eligible pay, calculated based on a formula that takes into account their age and years of completed vesting service as of January 1, 2007.

We provided certain healthcare and life insurance benefits to our retired employees who were hired before January 1, 1990, under a postretirement welfare plan (the “Postretirement Welfare Plan”). Until its curtailment on August 31, 2002, EFSG had a plan that provided certain healthcare benefits for retired employees (the “EFSG Postretirement Medical Plan”). The expense for postretirement benefit plans for the years ended December 31, 2011, 2010 and 2009 was immaterial to our financial statements. We accrue the estimated cost of retiree medical and life benefits over the period during which employees render the service that qualifies them for benefits.

We have a voluntary deferred compensation plan for senior officers and a voluntary deferred compensation plan for our directors. The voluntary deferred compensation plans allow: (1) senior officers to defer receipt of all or a portion of their annual cash incentive award, and (2) directors to defer receipt of all or a portion of their cash compensation and/or the payment date of their equity compensation. Under the plans, a participant must make a binding written election before the year in which compensation is to be earned to defer compensation payouts for at least two full calendar years beyond the year in which such compensation would have been paid.

Participants’ accounts are distributed at the dates specified in their deferral election forms or, in certain cases, upon an earlier termination of employment or service.

The deferred compensation plan amounts are not funded and are not segregated from our general assets. Accordingly, participants in each plan are general unsecured creditors of Radian Group with respect to the amounts due under the plans. The amount recorded as deferred compensation expense for the years ended December 31, 2011, 2010 and 2009 was immaterial to our financial statements.

Contributions

We expect to contribute nominal amounts to Radian Group’s and EFSG’s other postretirement benefit plans in 2012. Due to the nature of the Postretirement Welfare Plan, no increase is assumed in our obligation due to any increases in the per-capita cost of covered healthcare benefits.

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Note 7 - Investments Investment Income (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment Income, Gross	$ 171,370	$ 186,159	$ 221,483
Investment Income, Investment Expense	(7,850)	(7,399)	(7,293)
Investment Income, Net	163,520	178,760	214,190
Fixed Maturities [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment Income, Gross	155,183	174,204	208,755
Equity Securities [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment Income, Gross	11,559	7,623	6,973
Short-term Investments [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment Income, Gross	611	1,576	4,289
Other Aggregated Investments [Member]
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Investment Income, Gross	$ 4,017	$ 2,756	$ 1,466

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Note 16 - Share-Based and Other Compensation Plans (RSUs - Cash Settled) (Details) (2008 Equity Plan [Member])	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants by Compensation Committee			375,500
Performance Based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	3 years
Cash Settled [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants by Compensation Committee	0
Cash Settled [Member] | Performance Based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants by Compensation Committee	3,004,730	162,500
Cash Settled [Member] | Performance Based RSUs [Member] | Total Shareholder Return, Industry Peer Group [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target weight as percentage of total performance target	50.00%
Cash Settled [Member] | Performance Based RSUs [Member] | Total Shareholder Return, S&P 400 Index [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target weight as percentage of total performance target	50.00%
Cash Settled [Member] | Timed-Vested RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants by Compensation Committee		108,921	423,503
Vesting period (in years)	3 years
Maximum [Member] | Cash Settled [Member] | Performance Based RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting amount as percentage of target award	200.00%
Maximum [Member] | Cash Settled [Member] | Performance Based RSUs [Member] | Total Shareholder Return, Industry Peer Group [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payout range amount as percentage of target award	100.00%
Maximum [Member] | Cash Settled [Member] | Performance Based RSUs [Member] | Total Shareholder Return, S&P 400 Index [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payout range amount as percentage of target award	150.00%

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities [Abstract]
Net income (loss)	$ 302,150	$ (1,805,867)	$ (147,879)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Net (gains) losses on investments and other financial instruments, change in fair value of derivatives and net impairment losses recognized in earnings	(1,022,699)	630,539	(259,261)
Net payments related to derivative contracts and VIE debt	(119,888)	(291,936)	(38,044)
Equity in net income of affiliates	(65)	(14,668)	(33,226)
Distributions from affiliates	0	29,498	11,040
Gain on sale of affiliate	0	(34,815)	0
Proceeds from sales of trading securities (See Note 2)	0	0	4,286,336
Purchases of trading securities (See Note 2)	0	0	(3,880,824)
Net cash received (paid) for commutations, terminations and recaptures	(92,599)	85,657	(369,926)
Deferred income tax provision (benefit)	6,758	381,408	(55,344)
Depreciation and other amortization, net	63,120	39,789	20,080
Change in:
Unearned premiums	(46,665)	(136,291)	(178,677)
Deferred policy acquisition costs	8,420	11,949	19,954
Reinsurance recoverables	86,047	58,266	(197,764)
Reserve for losses and LAE	(194,486)	252,908	629,873
Reserve for premium deficiency	(7,092)	(14,621)	(61,504)
Prepaid federal income taxes	0	0	248,828
Other Assets	65,388	(34,405)	3,641
Accounts payable and accrued expenses	53,836	(20,014)	30,342
Net cash (used in) provided by operating activities	(897,775)	(862,603)	27,645
Cash flows from investing activities:
Proceeds from sales of fixed-maturity investments available for sale	136,217	1,218,460	2,463,626
Proceeds from sales of equity securities available for sale	52,014	15,033	33,807
Proceeds from sales of trading securities (See Note 2)	6,028,267	4,735,215	536,601
Proceeds from redemptions of fixed-maturity investments available for sale	32,214	50,846	199,551
Proceeds from redemptions of fixed-maturity investments held to maturity	8,775	9,035	18,171
Purchases of fixed-maturity investments available for sale	0	0	(308,831)
Purchases of trading securities	(5,456,565)	(6,126,303)	(2,577,599)
Purchases of equity securities available for sale	0	0	(2,908)
Sales and redemptions of short-term investments, net	276,082	(86,071)	(271,041)
Purchases of other invested assets, net	(1,373)	(33,501)	(3,616)
Proceeds from the sale of investment in affiliate	0	172,017	0
Purchases of property and equipment, net	(2,976)	(2,516)	(4,300)
Net cash provided by (used in) investing activities	1,072,655	(47,785)	83,461
Cash flows from financing activities:
Dividends paid	(1,330)	(1,202)	(827)
Issuance of long-term debt	0	391,310	0
Paydown of other borrrowings	0	0	(100,000)
Redemption of long-term debt	(160,000)	(29,348)	(45,622)
Issuance of common stock	0	525,887	0
Excess tax benefits from stock based awards	4	0	0
Net cash (used in) provided by financing activities	(161,326)	886,647	(146,449)
Effect of exchange rate changes on cash	1,701	2,501	1,088
Increase (decrease) in cash	15,255	(21,240)	(34,255)
Cash, beginning of period	20,334	41,574	75,829
Cash, end of period	35,589	20,334	41,574
Supplemental disclosures of cash flow information:
Income taxes (received) paid	1,573	(386)	(335,497)
Interest paid	$ 48,643	$ 40,786	$ 49,224

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Balance Sheet Parentheticals (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Held-to-maturity Securities, Fair Value Disclosure	$ 2,748		$ 11,416
Available-for-sale Debt Securities, Amortized Cost Basis	120,757		340,795
Available-for-sale Equity Securities, Amortized Cost Basis	114,425		160,242
Variable interest entity (“VIE”) securities	94,521		83,184
Variable interest entity (“VIE”) short term investments	149,981		149,981
Allowance for doubtful accounts	0		50,000
Accumulated depreciation	96,403		92,451
VIE derivative assets	1,602		10,855
VIE Other Assets	105,903		112,426
VIE non-recourse debt	0		9,514
VIE derivative liabilities	19,501		19,226
Variable Interest Entity Accounts Payable And Other Liabilities	530		837
Par value	$ 0.001		$ 0.001
Shares authorized	325,000,000		325,000,000
Shares issued	150,666,446		150,507,853
Common Stock, Shares, Outstanding	133,199,159		133,049,213
Treasury stock shares	17,467,287		17,458,640
Debt Securities [Member]
Held-to-maturity Securities, Fair Value Disclosure	2,748		11,416
Available-for-sale Debt Securities, Amortized Cost Basis	120,757		340,795
Equity Securities [Member]
Available-for-sale Equity Securities, Amortized Cost Basis	$ 114,425	[1]	$ 160,242	[2]

[1] Comprising broadly diversified domestic equity mutual funds ($116.0 million fair value at December 31, 2011) and various preferred and common stocks invested across numerous companies and industries ($12.4 million fair value at December 31, 2011).

[2] Comprising broadly diversified domestic equity mutual funds ($168.4 million fair value at December 31, 2010) and various preferred and common stocks invested across numerous companies and industries ($16.0 million fair value at December 31, 2010).

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Note 10 - Losses and LAE Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Losses and LAE Mortgage Insurance [Abstract]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Losses and LAE

Our reserve for losses and LAE, as of the dates indicated, consisted of:

	December 31,
(In thousands)	2011		2010
Mortgage insurance reserves	$	3,247,900	$	3,524,971
Financial guaranty reserves (1)	63,002		71,764
Total reserve for losses and LAE	$	3,310,902	$	3,596,735

_________________________

(1) Includes reserve for losses and LAE for our trade credit reinsurance and surety business of $2.5 million and $4.3 million at December 31, 2011 and 2010, respectively.

The following table presents information relating to our mortgage insurance reserves for losses and LAE as of the dates indicated:

	Year Ended December 31,
(In thousands)	2011		2010		2009
Mortgage Insurance
Balance at January 1	$	3,524,971	$	3,450,538	$	2,989,994
Less reinsurance recoverables (1)	223,254		621,644		491,836
Balance at January 1, net of reinsurance recoverables	3,301,717		2,828,894		2,498,158
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	1,127,079		1,173,035		1,712,477
Prior years	166,778		557,766		(411,650		)
Total incurred	1,293,857		1,730,801		1,300,827
Deduct paid claims and LAE related to:
Current year (2)	39,642		54,410		138,717
Prior years	1,459,601		1,203,568		831,374
Total paid	1,499,243		1,257,978		970,091
Balance at end of period, net of reinsurance recoverables	3,096,331		3,301,717		2,828,894
Add reinsurance recoverables (1)	151,569		223,254		621,644
Balance at December 31	$	3,247,900	$	3,524,971	$	3,450,538

_________________________

(1) Related to ceded losses on captive reinsurance transactions and Smart Home. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Off-Balance Sheet Arrangements" for additional information regarding our Smart Home transactions.

(2) Related to underlying defaulted loans with a most recent date of default notice in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

Our loss reserves were reduced in 2011, primarily as a result of a decrease in our total inventory of defaults, as the volume of paid claims, cures, and insurance rescissions and claim denials outpaced new default notices received during the year, as described below. In 2011, claims paid were at a relatively low level due to an increase in the number of claims received that we are reviewing for potential violations of our insurance policies as compared to prior years, which has slowed our internal claims payment process, and by foreclosure moratoriums, servicer delays and loan modification programs, which have reduced the number of defaults going to claim. We cannot be certain of the ultimate impact of these programs on our business or results of operations, or the timing of this impact. Some of the most recent foreclosure backlogs, related to borrower challenges to allegations of improper foreclosure documentation, have further delayed our receipt of claims. Reserves established for new default notices received in the current year were the primary driver of our total incurred losses for 2011. In addition, our results for the year ended December 31, 2011, included an increase to our IBNR reserve estimate, which includes an estimate of the future reinstatements of previously rescinded policies and resubmissions of previously denied claims.

Of the $166.8 million adverse development experienced in 2011 associated with default notices reported in prior years, $120.3 million related to an increase in both our actual and estimated reinstatements and resubmissions of policies and claims previously rescinded or denied in prior years, while the balance related primarily to the greater than anticipated impact from the aging of underlying defaulted loans on our default to claim rate. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. With continuing declines in home values, persistently high unemployment and delays by servicers in either modifying loans or foreclosing on properties, the time it has taken to cure or otherwise resolve a delinquent loan has been prolonged. Consequently, in recent years, our default inventory has experienced an increase in its weighted average age, and because we apply higher estimated default to claim rates on our more aged delinquent loans, this has resulted in a higher reserve per default. As a consequence, our aggregate weighted average default to claim rate assumption (net of denials and rescissions) used in estimating our reserve for losses was 43% at December 31, 2011, compared to 40% and 36% at December 31, 2010 and 2009, respectively. Our default to claim rate estimate varies depending on the age of the underlying defaulted loans, as measured by the number of monthly payments missed. As of December 31, 2011, our default to claim rate estimate, net of our estimate for insurance rescissions and claims denials, ranged from 19% for insured loans that had missed two to three monthly payments, to 52% for insured loans that had missed 12 or more monthly payments.

The most significant driver of the $557.8 million prior year adverse development in 2010 related to the impact from the aging of underlying defaulted loans on our default to claim rate beyond the extent we expected at December 31, 2009. The protracted amount of time it took for servicers to resolve certain aged loans extended the period of uncertainty with regard to our ultimate claim liability beyond what we predicted at the time the reserves were established. To a lesser extent, the increase in our default to claim rate in 2010 was also impacted by a decrease in our expected levels of insurance rescissions and claim denials associated with prior year defaults, as compared to expected levels at December 31, 2009. This change in our estimate was a result of changes in observed trends during 2010. In addition, an increase in our severity estimates, primarily due to refinements in estimates on pool insurance defaults, negatively impacted our reserves related to defaults reported in prior years.

During 2011, changes in the composition of our delinquent loan inventory continued to impact our reserves and incurred losses; in addition, an increase in our actual and estimated amount of future insurance rescissions and claim denials for certain aged defaults positively affected our losses incurred on prior year defaults during the year, primarily driven by the increase in the number of claims received that we are reviewing for violations of our insurance policies. With respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Adjustments are made to loss reserves as defaulted loans age, and therefore, are considered to be closer to foreclosure and more likely to result in a claim payment. In the past, as the default proceeded towards foreclosure, there was generally more certainty around these estimates as a result of the aged status of the defaulted loan. However, in light of existing foreclosure moratoriums and efforts to increase loan modifications among defaulted borrowers, significant uncertainty remains with respect to the ultimate resolution of later stage defaults. This uncertainty requires management to use considerable judgment in estimating the rate at which these loans will result in claims.

Our reserve for losses includes the impact of our estimate of future rescissions and denials, which remain elevated compared to levels experienced prior to 2009. The current elevated levels of insurance rescissions and claim denials have reduced our paid losses and have resulted in a significant reduction in our loss reserves. The impact of our estimate of future rescissions and denials reduced our loss reserves as of December 31, 2011 and 2010, by approximately $631 million and $922 million, respectively. In addition, the impact of our estimate of future reinstatements of previously rescinded policies and denied claims increased our loss reserves as of December 31, 2011 and 2010, by approximately $129 million and $26 million, respectively, as further described below. The amount of estimated rescissions and denials incorporated into our reserve analysis at any point in time is affected by a number of factors, including not only our estimated rate of rescissions and denials on future claims, but also the volume and attributes of our defaulted insured loans, our estimated default to claim rate, and our estimated claim severity, among other assumptions. We expect the amount of estimated rescissions and denials embedded within our reserve analysis to decrease over time, as the defaults related to the poor underwriting periods of 2005 through 2008 decline as a proportion of our total default portfolio and as we realize the results through actual rescissions and denials, or the commutations of insured loans. In the event that we experience a more rapid than expected decrease in the level of future insurance rescissions and claim denials from the current levels, it could have a materially adverse effect on our paid losses and loss reserves.

The following table illustrates the amount of first-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of reinstatements within each period:

	Year Ended December 31,
(In millions)	2011		2010		2009
Rescissions—first loss position	$	360.0	$	339.2	$	330.7
Denials—first loss position	133.9		200.2		67.4
Total first loss position (1)	493.9		539.4		398.1
Rescissions—second loss position	114.2		199.1		372.9
Denials—second loss position	37.0		61.5		54.6
Total second loss position (2)	151.2		260.6		427.5
Total first-lien claims submitted for payment that were rescinded or denied (3)	$	645.1	$	800.0	$	825.6

______________________

(1) Related to claims from policies in which we were in a first loss position and would have paid the claim absent the rescission or denial.

(2) Related to claims from policies in which we were in a second loss position. These rescissions or denials may not have resulted in a claim payment obligation due to deductibles and other exposure limitations included in our policies.

(3) Includes a small number of submitted claims that were subsequently withdrawn by the insured.

Our reported rescission and denial activity in any given period is subject to future challenges by our lender customers. Recent trends in insurance rescissions and claim denial activity reflect lenders challenging a greater number of rescissions and denials, and the overall challenges have been more effective (i.e., producing new or additional information that supports a reinstatement of coverage or a claim payment). Reinstatements of policies and resubmissions of claims that had been rescinded or denied as of the prior year-end, totaled $114.5 million in 2011, compared to $43.7 million in 2010. As a result of these trends, we expect that a larger portion of previously rescinded policies will be reinstated and previously denied claims will be resubmitted with the required documentation and ultimately paid, and have considered this expectation in developing our IBNR reserve estimate. This estimate, which currently primarily consists of our estimate of the future reinstatements of previously rescinded policies and denied claims, was $170.6 million and $39.5 million at December 31, 2011 and December 31, 2010, respectively.

The following table illustrates the total amount of first-lien claims submitted to us for payment that have been rescinded since January 1, 2009, and then subsequently were challenged ("rebutted") by the lenders and policyholders, but not reinstated, for the period from January 1, 2009, through December 31, 2011.

(In millions)	As of December 31, 2011
First loss position	$	460.7
Second loss position	191.8
Total non-overturned rebuttals on rescinded first-lien claims	$	652.5

While the total potential claim amount of non-overturned rebuttals outstanding represents all challenged rescissions for which coverage has not been reinstated, our ongoing, active discussions with our lender customers typically involve only a small number of these non-overturned rebuttals. Accordingly, we expect that some portion of these rescinded claims may be reinstated in future periods. Absent litigation or other legal proceedings in which we are not successful, we do not expect that these discussions are likely to result in settlements that would materially impact our liquidity or results of operations.

We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated insurance rescission activity. Our accrued liability for such refunds, which is included within accounts payable and accrued expenses on our consolidated balance sheets, was $57.2 million and $43.5 million as of December 31, 2011 and 2010, respectively.

Rescission and denial rates in 2011 have been affected by an increase in the number of claims received that we are reviewing for potential violations of our insurance policies. The following table shows the cumulative denial and rescission rates, net of reinstatements, as of December 31, 2011, on our total first-lien portfolio for each quarter in which the claims were received for the periods indicated:

Claim Received Quarter	Cumulative Rescission/Denial Rate for Each Quarter (1)		Percentage of Claims Resolved (2)
Q1 2009	23.8	%	100	%
Q2 2009	25.6	%	100	%
Q3 2009	22.7	%	100	%
Q4 2009	20.8	%	100	%
Q1 2010	18.9	%	99	%
Q2 2010	18.3	%	99	%
Q3 2010	16.6	%	98	%
Q4 2010	18.2	%	97	%
Q1 2011	21.4	%	92	%
Q2 2011	22.6	%	79	%

 ______________________

(1) Rescission/Denial rates represent the ratio of claims rescinded or denied to claims received (by claim count) and represent (as of December 31, 2011) the cumulative rate for each quarter based on number of claims received during that quarter. Until all of the claims received during the periods shown have been internally resolved, the rescission/denial rates for each quarter will be subject to change. These rates also will remain subject to change based on reinstatements of previously rescinded policies or denied claims.

(2) The percentage of claims resolved for each quarter presented in the table above, represents the number of claims that have been internally resolved as a percentage of the total number of claims received for that specific quarter. A claim is considered internally resolved when it is either paid or it is concluded that the claim should be denied or rescinded, though such denials or rescissions could be challenged and, potentially reinstated. For the third and fourth quarters of 2011, a significant portion of claims received for those quarters have not been internally resolved; therefore, we do not believe the cumulative rescission rates for those periods are presently meaningful and are therefore not presented.

We considered the sensitivity of first-lien loss reserve estimates at December 31, 2011, by assessing the potential changes resulting from a parallel shift in severity and default to claim rate. For example, assuming all other factors remain constant, for every one percentage point change in primary claim severity (which we estimate to be 27% of unpaid principal balance at December 31, 2011), we estimated that our loss reserves would change by approximately $96 million at December 31, 2011. For every one percentage point change in pool claim severity (which we estimate to be 44% of unpaid principal balance at December 31, 2011), we estimated that our loss reserves would change by approximately $6 million at December 31, 2011. For every one percentage point change in our overall default to claim rate (which we estimate to be 43% at December 31, 2011, including our assumptions related to rescissions and denials), we estimated a $67 million change in our loss reserves at December 31, 2011.

The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated:

	Year Ended December 31,
(In thousands)	2011		2010
Reserves for losses by category:
Prime	$	1,748,412	$	1,607,741
Alt-A	612,423		687,960
A minus and below	370,806		413,137
Reinsurance recoverable (1)	151,569		223,254
Total primary reserves	2,883,210		2,932,092
Pool insurance	353,583		566,565
Total first-lien reserves	3,236,793		3,498,657
Second-lien (2)	11,070		26,161
Other	37		153
Total reserve for losses	$	3,247,900	$	3,524,971

______________________

(1) Represents ceded losses on captive transactions and Smart Home.

(2) Does not include second-lien premium deficiency reserve.

Deteriorating markets in California and Florida, where non-prime and non-traditional mortgage products such as adjustable rate mortgages (“ARMs”) and interest-only loans are prevalent and where home prices have fallen significantly have resulted in significant losses in our mortgage insurance business. During the prolonged period of rising home prices that preceded the current downturn in the U.S. housing market, very few mortgage delinquencies and claims were attributable to insured loans in California, despite the significant growth during this period of riskier, non-traditional mortgage products in this state. As mortgage credit performance in California and Florida has deteriorated, given the size of these markets, our loss experience has been significantly affected and will continue to be negatively affected if conditions do not improve or continue to deteriorate. Approximately 19.5% of our primary mortgage insurance risk in force at December 31, 2011, was concentrated in the states of California and Florida.

See Note 12 for information regarding our financial guaranty claim liabilities.

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Note 15 - Statutory Information Statutory Information (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Jun. 30, 2011
Statutory Accounting Practices [Line Items]
States Which Have A Risk To Capital Ratio Limit of 25 To 1	11
Additional Risk And Capital Information
Policyholder Dividends, Rate on Policy Earnings		10.00%
STAT Accounting Information [Abstract]
Mortgage Guaranty Insurance Companies Are Required Each Year To Establish A Contingency Reserve Equal To This Percentage Of Premiums Earned In Such Year	50.00%
Number Of Years A Fifty Percent Contingency Reserve Is Required To Be Maintained	10
Mortgage Guaranty Insurance Companies Contingency Reserve May Be Reduced With Regulatory Approval To The Extent That Losses In Any Calendar Year Exceed This Percentage Of Earned Premiums For Such Year	35.00%
For Financial Guaranty Policies, Each Insurer Must Establish A Contingency Reserve Equal To The Greater Of This Percentage Of Premiums Written Or A Stated Percentage Of The Principal Guaranteed	50.00%
Range Of Years The Contingency Reserve Must Be Maintained, Low End	15
Range Of Years The Contingency Reserve Must Be Maintained, High End	20
Radian Guaranty [Member]
Statutory Accounting Practices [Line Items]
Statutory Unassigned Negative Surplus	$ 767,700,000	$ 168,600,000
Statutory net (loss) income	(545,100,000)	(535,200,000)	(211,800,000)
Statutory policyholers' surplus	843,200,000	1,295,700,000	741,300,000
Statutory contingency reserve	0	19,600,000	770,500,000
Additional Risk And Capital Information
Insurance Risk Ceded To Affiliates	2,500,000,000			2,000,000,000
Capital Contributions	30,000,000	322,000,000
Capital Contribution Receivable	100,000,000
Consolidation, Wholly Owned Subsidiary, Parent Ownershi Interest Changes, Transfer of Interest by Parent	17,000,000
Payments for (Proceeds from) Businesses and Interest in Affiliates	6,000,000
Radian Insurance [Member]
Statutory Accounting Practices [Line Items]
Statutory Unassigned Negative Surplus	379,100,000	384,100,000
Statutory net (loss) income	4,300,000	43,900,000	19,900,000
Statutory policyholers' surplus	156,800,000	151,700,000	108,900,000
Statutory contingency reserve	0	1,500,000	0
Additional Risk And Capital Information
Required statutory surplus	20,000,000
Radian Mortgage Assurance [Member]
Statutory Accounting Practices [Line Items]
Statutory Unassigned Negative Surplus	162,500,000	161,900,000
Statutory net (loss) income	(600,000)	7,400,000	(17,900,000)
Statutory policyholers' surplus	16,500,000	17,100,000	9,600,000
Additional Risk And Capital Information
Required statutory surplus	1,125,000
MInimum Statutory Surplus Committted To Be Maintained Each Quarter	5,000,000
CMAC Of Texas [Member]
Statutory Accounting Practices [Line Items]
Statutory net (loss) income	(46,600,000)	(194,700,000)	(67,000,000)
Statutory policyholers' surplus	26,200,000	40,800,000	122,500,000
Additional Risk And Capital Information
Capital Contributions	23,000,000
Required statutory surplus	20,000,000
Radian Mortgage Insurance [Member]
Statutory Accounting Practices [Line Items]
Statutory net (loss) income	(11,100,000)	(60,600,000)	(34,200,000)
Statutory policyholers' surplus	20,000,000	10,100,000	300,000
Additional Risk And Capital Information
Capital Contributions	10,500,000
Minimum Policyholder Position	5,400,000
Radian Asset Assurance
Statutory Accounting Practices [Line Items]
Statutory net (loss) income	69,100,000	58,000,000	42,800,000
Statutory policyholers' surplus	973,900,000	1,048,600,000	1,059,100,000
Statutory contingency reserve	421,400,000	392,600,000	366,100,000
Additional Risk And Capital Information
Claims Paying Resources	2,200,000,000
Required statutory surplus	66,400,000
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries	53,400,000	69,200,000	99,700,000
Statutory Minimum Policyholders' Surplus Required For Financial Guaranty Insurers In The State Of New York	65,000,000
Statutory Minimum Policyholders' Surplus Required For Other Lines Of Insurance By The State Of New York	$ 1,400,000
NEW YORK
Additional Risk And Capital Information
The Insured Average Annual Debt Service For A Single Risk, Net Of Reinsurance And Collateral, May Not Exceed This Percentage Of The Sum Of The Insurer's Policyholders' Surplus And Contingency Reserves	10.00%
Insured Principal Of Municipal Bonds Attributable To Any Single Risk, Net Of Reinsurance And Collateral, Is Limited To This Percentage Of The Insurer's Policyholders' Surplus And Contingency Reserves	75.00%

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Note 13 - Long-Term Debt Schedule of Long Term Debt (Details) (USD $)	12 Months Ended														12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2010 7.75% Debentures due 2011 [Member]	Dec. 31, 2009 7.75% Debentures due 2011 [Member]	Dec. 31, 2011 7.75% Debentures due 2011 [Member]	May 01, 2001 7.75% Debentures due 2011 [Member]	Dec. 31, 2011 5.625% Senior Notes due 2013 [Member]	Dec. 31, 2010 5.625% Senior Notes due 2013 [Member]	Jan. 31, 2008 5.625% Senior Notes due 2013 [Member]	Feb. 01, 2003 5.625% Senior Notes due 2013 [Member]	Dec. 31, 2011 5.375% Senior Notes due 2015 [Member]	Dec. 31, 2010 5.375% Senior Notes due 2015 [Member]	Jun. 01, 2005 5.375% Senior Notes due 2015 [Member]	Dec. 31, 2010 3.00% Convertible Senior Notes due 2017 [Member]	Dec. 31, 2011 3.00% Convertible Senior Notes due 2017 [Member]	Nov. 01, 2010 3.00% Convertible Senior Notes due 2017 [Member]	Dec. 31, 2011 Total Long Term Debt [Member]	Dec. 31, 2010 Total Long Term Debt [Member]
Debt Instrument [Line Items]
Long-term debt	$ 818,584,000	$ 964,788,000		$ 160,344,000		$ 0		$ 252,267,000	$ 254,305,000			$ 249,819,000	$ 249,772,000		$ 300,367,000	$ 316,498,000		$ 818,584,000	$ 964,788,000
Debt Instrument, Interest Rate, Stated Percentage						7.75%	7.75%	5.625%			5.625%	5.375%		5.375%		3.00%	3.00%
Other Long Term Debt Details [Abstract]
Debt Instrument, Face Amount							250,000,000				250,000,000			250,000,000	450,000,000	450,000,000	450,000,000
Extinguishment of Debt, Amount				31,900,000	57,700,000
Amount Per Dollar of Principal of Debt Repurchased				$ 0.92	$ 0.79
Gains (Losses) on Extinguishment of Debt				2,500,000	12,000,000
Debt Instrument, Unamortized Premium										11,500,000
Proceeds from Issuance of Debt	$ 0	$ 391,310,000	$ 0												$ 391,300,000
Percent of Stock With Ordinary Voting Rights That the Company Must Retain In Order to Make Any Capital Stock Transactions Under Debt Covenant Agreement								80.00%				80.00%

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Note 12 - Financial Guaranty Insurance Contracts Schedule of Significant Components Of Change In Financial Guaranty Claim Liability (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
International Exposure [Abstract]
Net Par Outstanding in Sovereign and Non-Sovereign International Public Finance Obligations	$ 3,200,000,000
Net Par Outstanding of Sovereign Risk	495,400,000
Public Finance and Structured Finance [Member]
Claim liability at beginning of period	67,400,000	121,800,000	211,500,000
Increase (decrease) in gross claim liability	68,100,000	86,200,000	(6,000,000)
Increase in gross potential recoveries	(76,100,000)	(74,200,000)	(42,600,000)
Decrease (increase) in discount	7,500,000	(1,900,000)	69,600,000
Decrease (increase) in unearned premiums	4,600,000	(1,100,000)	20,700,000
Incurred losses and LAE	4,100,000	9,000,000	41,700,000
Significant Components of Change in Financial Guaranty Claim Liability, Paid Losses and LAE Current Year	0	(1,600,000)	(25,400,000)
Significant Components of Change in Financial Guaranty Claim Liability, Paid Losses and LAE Prior Years	(11,000,000)	(61,800,000)	(106,000,000)
Significant Components of Change in Financial Guaranty Claim Liability, Paid Losses and LAE	(11,000,000)	(63,400,000)	(131,400,000)
Claim liability at end of period	60,500,000	67,400,000	121,800,000
Components of incurred losses and LAE [Abstract]
Claim liability established in current period	2,200,000	1,700,000	54,100,000
Changes in existing claim liabilities	1,900,000	7,300,000	(12,400,000)
Total incurred losses and LAE	4,100,000	9,000,000	41,700,000
Components of increase in discount [Abstract]
Decrease (increase) in discount related to claim liabilities established in current period	200,000	(6,300,000)	(4,700,000)
Decrease (increase) in discount related to existing claim liabilites	7,300,000	4,400,000	74,300,000
Total decrease (increase) in discount	7,500,000	(1,900,000)	69,600,000
Trade Credit Reinsurance and Surety Insurance [Member]
Claim liability at end of period	2,500,000	4,300,000	6,600,000
Spain [Member]
International Exposure [Abstract]
Net Par Outstanding of Sovereign Risk	47,000,000
Greece [Member]
International Exposure [Abstract]
Net Par Outstanding of Sovereign Risk	30,100,000
Claim Liability on International Exposure	4,400,000
Italy [Member]
International Exposure [Abstract]
Net Par Outstanding of Sovereign Risk	22,400,000
Portugal [Member]
International Exposure [Abstract]
Net Par Outstanding of Sovereign Risk	1,300,000
Ireland [Member]
International Exposure [Abstract]
Net Par Outstanding of Sovereign Risk	$ 0

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Note 18 - Commitments and Contingencies Purchase Committment, Excluding Long Term Committment (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	$ 9.6

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Note 17 - Benefit Plans (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Cash Surrender Value of Life Insurance	$ 8,400,000
Defined Contribution Plan Maximum Percentage Of Base Earnings Qualifying For Pre-Tax Contributions	25.00%
Defined Contribution Plan Annual IRS Pre-Tax Contribution Limit	16,500
Defined Contribution Plan Parent Company Matching Contribution Percentage	100.00%
Defined Contribution Plan Percentage Of Base Earnings Qualifying For Parent Company Matching Contribution	6.00%
Defined Contribution Plan, Cost Recognized	$ 3,500,000	$ 3,500,000	$ 3,800,000

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2011	Feb. 24, 2012	Jun. 30, 2011
Document and Entity Information [Line Items]
Entity Registrant Name	Radian Group Inc.
Entity Central Index Key	0000890926
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q4
Amendment Flag	false
Entity Common Stock, Shares Outstanding		133,290,984
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 553,787,209

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Note 18 - Commitments and Contingencies Commitment for Non Cancelable Operating Leases in Future Years (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 5,000,000	$ 4,900,000	$ 7,500,000
Operating Leases, Future Minimum Payments Due, Current	12,619,000
Operating Leases, Future Minimum Payments, Due in Two Years	12,518,000
Operating Leases, Future Minimum Payments, Due in Three Years	12,313,000
Operating Leases, Future Minimum Payments, Due in Four Years	10,144,000
Operating Leases, Future Minimum Payments, Due in Five Years	4,296,000
Operating Leases, Future Minimum Payments, Due Thereafter	3,006,000
Operating Leases, Future Minimum Payments Due	54,896,000
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals	$ 13,500,000

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Note 11 - Reserve for Premium Deficiency Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Reserve for Premium Deficiency [Abstract]

Reserve for Premium Deficiency [Text Block]

Reserve for Premium Deficiency

The PDR in our mortgage insurance business at December 31, 2011 and 2010 relates to our second-lien business.

The following table reconciles our mortgage insurance segment's beginning and ending second-lien PDR for the periods indicated:

	Year Ended December 31
(In thousands)	2011			2010
Balance at January 1	$	10,736		$	25,357
Incurred losses recognized in loss reserves	(11,143		)	(10,233		)
Premiums recognized in earned premiums	2,851			2,501
Changes in underlying assumptions	595			(8,368		)
Accretion of discount and other	605			1,479
Balance at December 31	$	3,644		$	10,736

For our first-lien insurance business, because the combination of the net present value of expected premiums and already established reserves (net of reinsurance recoverables) exceeds the net present value of expected losses and expenses, a first-lien PDR was not required as of December 31, 2011. Our pre-tax investment yield used as the discount rate in these present value calculations was 2.62% and 2.44% as of December 31, 2011 and 2010, respectively. Expected losses are based on an assumed paid claim rate of approximately 14.2% on our total first-lien insurance portfolio (8.9% on performing loans and 43.1% on defaulted loans). Assuming all other factors remained constant, if our paid claim rate increased from approximately 14.2% to 15.8%, we would be required to establish a premium deficiency reserve. New business originated since the beginning of 2009 is expected to be profitable, which has contributed to the overall expected net profitability of our first-lien portfolio. In addition, estimated rescissions and denials on insured loans are expected to partially offset the impact of expected defaults and claims.

For our financial guaranty business, no PDR was necessary as of December 31, 2011 or 2010.

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Note 10 - Losses and LAE Mortgage Insurance Loss Reserves Rollforward (Details) (USD $)	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Deduct paid claims and LAE related to [Abstract]
Add reinsurance recoverables	$ 157,985,000		$ 244,894,000
Default To Claim Rate Detail [Abstract]
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions	43.00%		40.00%
Claim Severity Detail [Abstract]
Percentage Point Change In Severity Used In Assumption Shift Analysis	1.00%
Mortgage Insurance Segment
Loss reserve [Roll Forward]
Balance at January 1	3,524,971,000		3,450,538,000		2,989,994,000
Less reinsurance recoverables	223,254,000	[1]	621,644,000		491,836,000
Balance at beginning of period, net of reinsurance recoverables	3,301,717,000		2,828,894,000		2,498,158,000
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract]
Current year	1,127,079,000	[2]	1,173,035,000		1,712,477,000
Prior years	166,778,000		557,766,000		(411,650,000)
Total incurred losses and LAE	1,293,857,000		1,730,801,000		1,300,827,000
Deduct paid claims and LAE related to [Abstract]
Current year	39,642,000	[2]	54,410,000		138,717,000
Prior years	1,459,601,000		1,203,568,000		831,374,000
Total paid	1,499,243,000		1,257,978,000		970,091,000
Balance at end of period, net of reinsurance recoverables	3,096,331,000		3,301,717,000		2,828,894,000
Add reinsurance recoverables	151,569,000	[1]	223,254,000	[1]	621,644,000
Balance at December 31	3,247,900,000		3,524,971,000		3,450,538,000
Incurred Losses Related To Prior Year Rescissions And Denials	120,300,000
Default To Claim Rate Detail [Abstract]
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions	43.00%		40.00%		36.00%
Default To Claim Rate Estimate Net Of Rescission And Denial Estimates For Insured Loans That Missed Two To Three Monthly Payments	19.00%
Impact To Our Loss Reserves Due To Estimated Rescissions And Denials [Abstract]
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials	631,000,000		922,000,000
Increase To Our Loss Reserves Due To Estimated Future Reinstatements Of Previously Rescinded Policies And Denied Claims	129,000,000		26,000,000
IBNR Reserve Estimate [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount	170,600,000		39,500,000
Claim Severity Detail [Abstract]
Percentage Point Change In Severity Used In Assumption Shift Analysis	1.00%
First Lien Primary Claim Severity	27.00%
Impact To Loss Reserves Based On One Percentage Change In Primary Claim Severity	96,000,000
First Lien Pool Claim Severity	44.00%
Impact To Loss Reserves Based On One Percentage Change In Pool Claim Severity	6,000,000
Impact To Loss Reserves Based On One Percentage Change in Default To Claim Rate	67,000,000
Amount By Which Our Provision For Losses Increased As A Result Of The Actual Reinstatement Of Policies And Resubmission Of Claims That Had Been Rescinded Or Denied As Of The Prior Year End	$ 114,500,000		$ 43,700,000
Default To Claim Rate Assumptions Two Missed Payments [Member]
Default To Claim Rate Detail [Abstract]
Number Of Payments Missed For Insured Loans	2
Default To Claim Rate Assumptions Three Missed Payments [Member]
Default To Claim Rate Detail [Abstract]
Number Of Payments Missed For Insured Loans	3
Default To Claim Rate Assumptions Twelve Or More Missed Payments [Member]
Default To Claim Rate Detail [Abstract]
Number Of Payments Missed For Insured Loans	12
Mortgage Insurance Segment
Default To Claim Rate Detail [Abstract]
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions	43.00%		40.00%
Default To Claim Rate Estimate Net Of Rescission And Denial Estimates For Insured Loans That Missed Two To Three Monthly Payments	19.00%
Default To Claim Estimate Net Of Rescission And Denial Estimates For Loans That Missed Twelve Or More Monthly Payments	52.00%

[1] Related to ceded losses on captive reinsurance transactions and Smart Home. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Off-Balance Sheet Arrangements" for additional information regarding our Smart Home transactions.

[2] Related to underlying defaulted loans with a most recent date of default notice in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

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Note 12 - Financial Guaranty Insurance Contracts Future Premium Revenues For Financial Guaranty Contracts (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
First Quarter 2012
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	$ 394.4
Amortization of Unearned Premium	9.5
Accretion of premium receivable	0.3
Total Premium Revenue to be recognized	9.8
Second Quarter 2012
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	385.5
Amortization of Unearned Premium	8.9
Accretion of premium receivable	0.3
Total Premium Revenue to be recognized	9.2
Third Quarter 2012
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	376.8
Amortization of Unearned Premium	8.7
Accretion of premium receivable	0.3
Total Premium Revenue to be recognized	9.0
Fourth Quarter 2012
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	368.3
Amortization of Unearned Premium	8.5
Accretion of premium receivable	0.3
Total Premium Revenue to be recognized	8.8
2012
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	368.3
Amortization of Unearned Premium	35.6
Accretion of premium receivable	1.2
Total Premium Revenue to be recognized	36.8
2013
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	333.1
Amortization of Unearned Premium	35.2
Accretion of premium receivable	0.9
Total Premium Revenue to be recognized	36.1
2014
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	300.8
Amortization of Unearned Premium	32.3
Accretion of premium receivable	0.9
Total Premium Revenue to be recognized	33.2
2015
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	271.9
Amortization of Unearned Premium	28.9
Accretion of premium receivable	0.8
Total Premium Revenue to be recognized	29.7
2016
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	245.7
Amortization of Unearned Premium	26.2
Accretion of premium receivable	0.7
Total Premium Revenue to be recognized	26.9
2012 - 2016
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	245.7
Amortization of Unearned Premium	158.2
Accretion of premium receivable	4.5
Total Premium Revenue to be recognized	162.7
2017 - 2021
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	137.8
Amortization of Unearned Premium	107.9
Accretion of premium receivable	2.9
Total Premium Revenue to be recognized	110.8
2022 - 2026
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	66.4
Amortization of Unearned Premium	71.4
Accretion of premium receivable	1.9
Total Premium Revenue to be recognized	73.3
2027 - 2031
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	27.0
Amortization of Unearned Premium	39.4
Accretion of premium receivable	1.2
Total Premium Revenue to be recognized	40.6
After 2031
Future Premium Revenue To Be Recognized [Line Items]
Unearned premiums	0
Amortization of Unearned Premium	27.0
Accretion of premium receivable	1.3
Total Premium Revenue to be recognized	28.3
Financial Guarantee Insurance Contracts Future Expected Premium Revenue to be Recognized [Member]
Future Premium Revenue To Be Recognized [Line Items]
Amortization of Unearned Premium	403.9
Accretion of premium receivable	11.8
Total Premium Revenue to be recognized	$ 415.7

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Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Premiums written—insurance:
Direct	$ 755,758	$ 788,321	$ 790,052
Assumed	(11,162)	(6,585)	(207,074)
Ceded	(37,349)	(89,855)	(139,130)
Net premiums written	707,247	691,881	443,848
Decrease in unearned premiums	48,778	133,852	382,053
Net premiums earned—insurance	756,025	825,733	825,901
Net investment income	163,520	178,760	214,190
Net gains on investments	202,177	139,944	257,141
Total other-than-temporary impairment ('OTTI') losses	(1,202)	(90)	(9,269)
Losses recognized in other comprehensive income (loss)	0	0	0
Net impairment losses recognized in earnings	(1,202)	(90)	(9,269)
Change in fair value of derivative instruments	628,395	(558,712)	99,958
Net gains (losses) on other financial instruments	193,329	(211,681)	(88,569)
Gain on sale of affiliate	0	34,815	0
Other income	5,599	8,696	14,026
Total revenues	1,947,843	417,465	1,313,378
Expenses:
Provision for losses	1,296,521	1,739,244	1,337,574
Change in reserve for premium deficiency	(7,092)	(14,621)	(61,504)
Policy acquisition costs	52,763	53,469	63,034
Other operating expenses	175,810	191,942	203,770
Interest expense	61,394	41,777	46,010
Total expenses	1,579,396	2,011,811	1,588,884
Equity in net income of affiliates	65	14,668	33,226
Income (Loss) from Equity Method Investments	65	14,668	33,226
Pretax income (loss)	368,512	(1,579,678)	(242,280)
Income tax provision (benefit)	66,362	226,189	(94,401)
Net income (loss)	$ 302,150	$ (1,805,867)	$ (147,879)
Basic net income (loss) per share	$ 2.28	$ (15.74)	$ (1.80)
Diluted net income (loss) per share	$ 2.26	$ (15.74)	$ (1.80)
Weighted-average number of common shares outstanding—basic	132,372	114,697	81,937
Weighted-average number of common and common equivalent shares outstanding—diluted	133,863	114,697	81,937
Dividends per share	$ 0.01	$ 0.01	$ 0.01

XML

Note 5 - Fair Value of Financial Instruments Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Fair Value of Financial Instruments [Abstract]

Fair Value Disclosures [Text Block]

Fair Value of Financial Instruments

The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value.

Investments

U.S. government and agency securities—The fair value of U.S. government and agency securities is estimated using observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation. U.S. government and agency securities are categorized in either Level I or Level II of the fair value hierarchy.

State and municipal obligations—The fair value of state and municipal obligations is estimated using recent transaction activity, including market and market-like observations. Evaluation models are used, which incorporate bond structure, yield curve, credit spreads, and other factors. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable.

Money market instruments—The fair value of money market instruments is based on daily prices, which are published and available to all potential investors and market participants. As such, these securities are categorized in Level I of the fair value hierarchy.

Corporate bonds and notes—The fair value of corporate bonds and notes is estimated using recent transaction activity, including market and market-like observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk and early redemption features, where applicable. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable.

RMBS—The fair value of residential mortgage-backed securities ("RMBS") is estimated based on prices of comparable securities and spreads, and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of the Level III securities is generally estimated by discounting estimated future cash flows.

CMBS—The fair value of CMBS is estimated based on prices of comparable securities and spreads, and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of the Level III securities is generally estimated by discounting estimated future cash flows.

CDO—These securities are categorized in Level III of the fair value hierarchy. The fair value of the Level III securities is generally estimated by discounting estimated future cash flows.

Other ABS—The fair value of other ABS is estimated based on prices of comparable securities and spreads, and observable prepayment speeds. These securities are generally categorized in Level II of the fair value hierarchy or in Level III when market-based transaction activity is unavailable. The fair value of the Level III securities is generally estimated by discounting estimated future cash flows.

Foreign government securities—The fair value of foreign government securities is estimated using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker dealers. These securities are categorized in Level II of the fair value hierarchy.

Hybrid securities—These instruments are convertible securities. The estimated fair value is derived, in part, by utilizing dealer quotes and observed bond and stock prices. For certain securities, the underlying security price may be adjusted to account for observable changes in the conversion and investment value from the time the quote was obtained. These securities are categorized in Level II of the fair value hierarchy.

Equity securities—The fair value of these securities is generally estimated using observable market data in active markets or bid prices from market makers and broker-dealers. Generally, these securities are categorized in Level I or II of the fair value hierarchy, as observable market data is readily available. A small number of our equity securities, however, are categorized in Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based evaluations.

Other investments—These securities primarily consist of short-term commercial paper within CPS trusts and short-term certificates of deposit, which are categorized in Level II of the fair value hierarchy. The fair value of the remaining securities is categorized in Level III of the fair value hierarchy, and is generally estimated by discounting estimated future cash flows.

We are responsible for the determination of the value of all investments carried at fair value and the supporting methodologies and assumptions. To assist us in this responsibility, we utilize independent third-party valuation service providers to gather, analyze, and interpret market information and estimate fair values based upon relevant methodologies and assumptions for various asset classes and individual securities. We perform monthly quantitative and qualitative analysis on the prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: (i) a review of the methodology used by third party pricing services; (ii) a comparison of pricing services' valuations to other independent sources; (iii) a review of month to month price fluctuations; and (iv) a comparison of actual purchase and sale transactions with valuations received from third parties. These processes are designed to ensure that our investment values are accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied, and that the assumptions are reasonable and consistent with the objective of determining fair value. 

The following table quantifies the impact of our non-performance risk on our derivative assets and liabilities (in aggregate by type, excluding assumed financial guaranty derivatives) and VIE liabilities presented in our consolidated balance sheets. Radian Group's five-year CDS spread is presented as an illustration of the market's view of our non-performance risk; the CDS spread actually used in the valuation of specific fair value liabilities is typically based on the remaining term of the instrument.

(In basis points)	December 31, 2011	December 31, 2010	December 31, 2009	December 31, 2008
Radian Group's five-year CDS spread	2,732	465	1,530	2,466

(In millions)	Fair Value Liability before Consideration of Radian Non-Performance Risk December 31, 2011		Impact of Radian Non-Performance Risk December 31, 2011		Fair Value Liability Recorded December 31, 2011
Product
Corporate CDOs	$	463.1	$	458.0	$	5.1
Non-Corporate CDO-related (1)	1,520.2		1,405.3		114.9
NIMS-related (2)	17.4		9.6		7.8
Total	$	2,000.7	$	1,872.9	$	127.8

(In millions)	Fair Value Liability before Consideration of Radian Non-Performance Risk December 31, 2010		Impact of Radian Non-Performance Risk December 31, 2010		Fair Value Liability Recorded December 31, 2010
Product
Corporate CDOs	$	387.1	$	281.5	$	105.6
Non-Corporate CDO-related (1)	1,696.2		934.1		762.1
NIMS-related (2)	134.1		4.8		129.3
Total	$	2,217.4	$	1,220.4	$	997.0

________________

(1) Includes the net liability recorded within derivative assets and derivative liabilities, and the net liability recorded within VIE debt and other financial statement line items for consolidated VIEs.

(2) Includes NIMS VIE debt and NIMS derivative assets.

Radian Group's five-year CDS spread at December 31, 2011, implies a market view that there is an 84% probability that Radian Group will default in the next five years as compared to a 32% implied probability of default at December 31, 2010. The cumulative impact attributable to the market's perception of our non-performance risk increased by $652.5 million during 2011, as presented in the table above. This increase was primarily the result of the widening of Radian Group's CDS spreads during this period.

Derivative Instruments and Related VIE Assets/Liabilities

We define fair value as the current amount that would be exchanged to sell an asset or transfer a liability, other than in a forced liquidation. In determining an exit market, we consider the fact that most of our derivative contracts are unconditional and irrevocable, and contractually prohibit us from transferring them to other capital market participants. Accordingly, there is no principal market for such highly structured insured credit derivatives. In the absence of a principal market, we value these insured credit derivatives in a hypothetical market where market participants include other monoline mortgage and financial guaranty insurers with similar credit quality to us, as if the risk of loss on these contracts could be transferred to these other mortgage and financial guaranty insurance and reinsurance companies. We believe that in the absence of a principal market, this hypothetical market provides the most relevant information with respect to fair value estimates.

We determine the fair value of our derivative instruments primarily using internally-generated models. We utilize market observable inputs, such as credit spreads on similar products, whenever they are available. When one of our transactions develops characteristics that are inconsistent with the characteristics of transactions that underlie the relevant market-based index that we use in our credit spread valuation approach, and more relevant inputs or projections become available that we believe would represent the view of a typical market participant, we change to an approach that is based on that more relevant available information. This change in approach is generally prompted when the credit component, and not market factors, becomes the dominant driver of the estimated fair value for a particular transaction. There is a high degree of uncertainty about our fair value estimates since our contracts are not traded or exchanged, which makes external validation and corroboration of our estimates difficult, particularly given the current market environment, in which very few, if any, contracts are being traded or originated. In very limited recent instances, we have negotiated terminations of financial guaranty contracts with our counterparties and believe that such terminations provide relevant data with respect to validating our fair value estimates and such data has been generally consistent with our fair value estimates.

Our derivative liabilities valuation methodology incorporates our own non-performance risk by including our observable CDS spread as an input into the determination of the fair value of our derivative liabilities. Considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates may not be indicative of amounts we could realize in a current market exchange or negotiated termination. Our derivative liability valuation is not counterparty specific and is intended to estimate the average exchange price between typical participants. The use of different market assumptions or estimation methodologies may have a material effect on the estimated fair value amounts or negotiated terminations. In a negotiated termination, certain factors unique to the counterparty may have a greater impact on the amount exchanged than in an estimated fair value amount between typical market participants, and another market participant could have materially different views given the level of judgment associated with the valuation.

Corporate CDOs

The fair value of each of our corporate CDO transactions is estimated based on the difference between (1) the present value of the expected future contractual premiums we charge, and (2) the fair premium amount that we estimate that another financial guarantor would require to assume the rights and obligations under our contracts. The fair value estimates reflect the fair value of the asset or liability, which is consistent with the "in-exchange" approach, in which fair value is determined based on the price that would be received or paid in a current transaction as defined by the accounting standard regarding fair value measurements. These credit derivatives are categorized in Level III of the fair value hierarchy.

Present Value of Expected Future Contractual Premiums—Our contractual premiums are subject to change primarily for two reasons: (1) all of our contracts provide our counterparties with the right to terminate upon our default, and (2)90%of the aggregate net par outstanding of our corporate CDO transactions (as of December 31, 2011) provide our counterparties with the right to terminate these transactions based on certain rating agency downgrades that occurred during 2008. In determining the expected future premiums of these transactions, we adjust the contractual premiums for such transactions to reflect the estimated fair value of those premiums based on our estimate of the probability of our counterparties exercising this downgrade termination right and the impact it would have on the remaining expected lifetime premium.We also cap the total estimated fair value of the contracts subject to termination at zero, such that none of these contracts are in a derivative asset position. As of December 31, 2011, 19% of the aggregate net par outstanding of our corporate CDO transactions were capped in this manner. The discount rate we use to determine the present value of expected future premiums is our CDS spread plus a risk-free rate. This discount rate reflects the risk that we may not collect future premiums due to our inability to satisfy our contractual obligations, which provides our counterparties the right to terminate the contracts.

Determining the Fair Premium Amount—For each corporate CDO transaction, we perform three principal steps in determining the fair premium amount:

• first, we define a tranche on the CDX index (defined below) that equates to the risk profile of our specific transaction (we refer to this tranche as an "equivalent-risk tranche");

• second, we determine the fair premium amount on the equivalent-risk tranche for those market participants engaged in trading on the CDX index (we refer to each of these participants as a "typical market participant"); and

• third, we adjust the fair premium amount for a typical market participant to account for the difference between the non-performance or default risk of a typical market participant and the non-performance or default risk of a financial guarantor of similar credit quality to us (in each case, we refer to the risk of non-performance as "non-performance risk").

Defining the Equivalent-Risk Tranche—Direct observations of fair premium amounts for our transactions are not available since these transactions cannot be traded or transferred pursuant to their terms and there is currently no active market for these transactions. However, CDSs on tranches of a standardized index (the "CDX index") are widely traded and observable, and provide relevant market data for determining the fair premium amount of our transactions, as described more fully below.

The CDX index is an index based on a synthetic corporate CDO that comprises a list of corporate obligors and is segmented into multiple tranches of synthetic senior unsecured debt of these obligors ranging from the equity tranche (i.e., the most credit risk or first-loss position) to the most senior tranche (i.e., the least credit risk). We refer to each of these tranches as a "standard CDX tranche." A tranche is defined by an attachment point and detachment point, representing the range of portfolio losses for which the protection seller would be required to make a payment.

Our corporate CDO transactions possess similar structural features to the standard CDX tranches, but often differ with respect to the referenced corporate entities, the term, the attachment points and the detachment points. Therefore, in order to determine the equivalent-risk tranche for each of our corporate CDO transactions, we determine the attachment and detachment points on the CDX index that have comparable estimated probabilities of loss as the attachment and detachment points in our transactions. We begin by performing a simulation analysis of referenced entity defaults in our transactions to determine the probability of portfolio losses exceeding our attachment and detachment points. The referenced entity defaults are primarily determined based on the following inputs: the market observed CDS credit spreads of the referenced corporate entities, the correlations between each of the referenced corporate entities, and the term of the transaction.

For each referenced corporate entity in our corporate CDO transactions, the CDS spreads associated with the term of our transactions ("credit curve") define the estimated expected loss for each entity (as applied in a market standard approach known as "risk neutral" modeling). The credit curves on individual referenced entities are generally observable. The expected cumulative loss for the portfolio of referenced entities associated with each of our transactions is the sum of the expected losses of these individual referenced entities. With respect to the correlation of losses across the underlying referenced entities, two obligors belonging to the same industry or located in the same geographical region are assumed to have a higher probability of defaulting together (i.e., they are more correlated). An increase in the correlations between the referenced entities generally causes a higher expected loss for the portfolio associated with our transactions. The estimated correlation factors that we use are derived internally based on observable third-party inputs that are based on historical data. The impact of our correlation assumptions currently does not have a material effect on our fair premium estimates in light of the significant impact of our non-performance risk adjustment as described below.

Once we have established the probability of portfolio losses exceeding the attachment and detachment points in our transactions, we then use the same simulation method to locate the attachment and detachment points on the CDX index with comparable probabilities. These equivalent attachment and detachment points define the equivalent-risk tranche on the CDX index that we use to determine fair premium amounts.

Determining the Typical Fair Premium Amount—The equivalent-risk tranches for our corporate CDO transactions often are not identical to any standard CDX tranches. As a result, fair premium amounts generally are not directly observable from the CDX index for the equivalent-risk tranche and must be separately determined. We make this determination through an interpolation in which we use the observed premium rates on the standard CDX tranches that most closely match our equivalent-risk tranche to derive the typical fair premium amount for the equivalent-risk tranche.

Non-Performance Risk Adjustment on Corporate CDOs—The typical fair premium amount estimated for the equivalent-risk tranche represents the fair premium amount for a typical market participant—not Radian. Accordingly, the final step in our fair value estimation is to convert this typical fair premium amount into a fair premium amount for a financial guarantor of similar credit quality to us. A typical market participant is contractually bound by a requirement that collateral be posted regularly to minimize the impact of that participant's default or non-performance. This collateral posting feature makes these transactions less risky to the protection buyer, and therefore, priced differently. None of our contracts require us to post collateral with our counterparties, which exposes our counterparties fully to our non-performance risk. We make an adjustment to the typical fair premium amount to account for both this contractual difference, as well as for the market's perception of our default probability, which is observable through our CDS spread.

The amount of the non-performance risk adjustment is computed based, in part, on the expected claim payment by Radian. To estimate this expected payment, we first determine the expected claim payment of a typical market participant by using a risk-neutral modeling approach. A significant underlying assumption of the "risk-neutral" model approach that we use is that the typical fair premium amount is equal to the present value of expected claim payments from a typical market participant. Expected claim payments on a transaction are based on the expected loss on that transaction (also determined using the "risk-neutral modeling" approach). Radian's expected claim payment is calculated based on the correlation between the default probability of the transaction and our default probability. The default probability of Radian is determined from the observed Radian Group CDS spread, and the default probability of the transaction is determined as described above under "Defining the Equivalent-Risk Tranche." The present value of Radian's expected claim payments is discounted using a risk-free interest rate, as the expected claim payments have already been risk-adjusted.

The reduction in our fair premium amount related to our non-performance risk is limited to a minimum fair premium amount, which is determined based on our estimate of the minimum fair premium that a market participant would require to assume the risks of our obligations. Approximately43% of our corporate CDO contracts as of December 31, 2011 are subject to this minimum fair premium. Our non-performance risk adjustment currently results in a material reduction of our typical fair premium amounts, which in turn has a positive impact on the fair value of these derivatives.

Non-Corporate CDOs and Other Derivative Transactions

Our non-corporate CDO transactions include our guaranty of TruPs CDOs, CDOs of ABS, CDOs of CMBS, and CDOs backed by other asset classes such as (i) municipal securities, (ii) synthetic financial guarantees of ABS, and (iii) project finance transactions. The fair value of our non-corporate CDOs and other derivative transactions is calculated as the difference between the present value of the expected future contractual premiums and our estimate of the fair premium amount for these transactions. The present value of expected future contractual premiums is determined based on the methodology described above for corporate CDOs. The contractual premiums associated with89%of the aggregate net par outstanding of our non-corporate CDO contracts are subject to change due to counterparties being provided the right to terminate these transactions based on certain rating agency downgrades that occurred during 2008. We also cap the total estimated fair value of the contracts subject to termination at zero, such that none of these contracts are in a derivative asset position. As of December 31, 2011,26%of the aggregate net par outstanding of our non-corporate CDO transactions were capped in this manner. For our credit card transactions, the fair premium amount is estimated using observed spreads on recent trades of securities that are similar to the securities that we guaranty. In all other instances, we utilize internal models to estimate the fair premium amount as described below. These credit derivatives are categorized in Level III of the fair value hierarchy.

TruPs CDOs—Our TruPs transactions are CDSs on CDOs where the collateral consists primarily of deeply subordinated securities issued by banks, insurance companies, real estate investment trusts and other financial institutions whose individual spreads are not observable. In each case, we provide credit protection on a specific tranche of each CDO. To determine fair value for these transactions, we use a discounted cash flow valuation approach that captures the credit characteristics of each transaction. We estimate projected claims based on our internal credit analysis, which is based on the current performance of each underlying reference obligation. The present value of the expected cash flows to the TruPs transaction is then determined using a discount rate derived from the observed market pricing for a TruPs transaction with similar characteristics. The present value of the insured cash flows is determined using a discount rate that is equal to our CDS rate plus a risk-free rate.

For certain of our TruPs transactions, our counterparties may require that we pay them the outstanding par on the underlying TruPs bond if an event of default has occurred and remains outstanding as of the termination date of our CDS coverage (a "conditional liquidity claim"). For these transactions, an additional fair value adjustment is made. To calculate this adjustment, a probability that we will be required to pay a conditional liquidity claim is assigned based on our internal cash flow projections. A discounted cash flow valuation is also performed for this scenario where we are required to make a conditional liquidity claim. The fair value is set equal to the probability weighted average of the valuations from the two scenarios: one in which our counterparty makes a conditional liquidity claim and one in which the claim is not made.

CDOs of ABS, including Related VIE Liabilities—The fair value amounts for our CDOs of ABS transactions are derived using standard market indices and discounted cash flows, to the extent expected losses can be estimated.

One of our CDO of ABS transactions matured during 2010, requiring no payment by us. The investment securities for the remaining CDO of ABS transaction, which is consolidated, have experienced significant credit deterioration. Fair value for these securities is estimated using a discounted cash flow analysis. We estimate cash flows for the transaction based on our internal credit analysis, which is based on the current performance of each security. The estimated fair value of the underlying collateral securities is determined using either observed market transactions, including broker-dealer quotes and actual trade activity on similar bonds, or expected cash flows discounted using the yield observed on similar bonds. The present value of the insured cash flows (which represents the VIE debt) is determined using a risk-free rate that is applied to the cash flows adjusted for Radian's non-performance risk. We continue to utilize this model to estimate the fair value of our exposure, and to derive the fair value of this consolidated VIE debt.

The VIE debt and derivative liability within this CDO of ABS transaction are categorized in Level III of the fair value hierarchy. Our maximum principal exposure to loss from this CDO of ABS transaction is $450.6 million at December 31, 2011, which reflects principal due in 2036. The recorded net fair value of our consolidated assets and liabilities related to this consolidated CDO of ABS as ofDecember 31, 2011, was less than our maximum principal exposure. The fair value of the VIE debt and other liabilities exceeds the net value of the assets of the VIE; however, because our fair value estimate of the VIE debt incorporates a discount rate that is based on our CDS spread, the fair value is substantially less than our expected ultimate claim payments.

CDOs of CMBS—The fair premium amounts for our CDOs of CMBS transactions for a typical market participant are derived first by observing the spreads of the CMBX indices that match the underlying reference obligations of our transactions. A mezzanine tranche, which represents our insured tranche, is then priced through a standard CDO model. The CMBX indices represent standardized lists of CMBS reference obligations. A different CMBX index exists for different types of underlying referenced obligations based on vintages and credit rating. For each of our CDO of CMBS transactions, we use the CMBX index that most directly correlates to our transaction with respect to vintage and credit rating. Because the observable CMBS indices do not have a similar mezzanine tranche, we use an internal CDO pricing model in order to adjust fair value for this structural feature. A standard CDO pricing model was calibrated to establish the market pricing at inception. This CDO pricing model is then applied to the current valuation period to derive the fair premium for the mezzanine tranche. The typical fair premium amount represents the estimated fair value of the expected future fair premiums determined by using a discount rate equal to the CDS spread of a typical market participant plus a risk-free rate.

All Other Non-Corporate CDOs and Other Derivative Transactions—For all of our other non-corporate CDO and other derivative transactions, observed prices and market indices are not available. As a result, we utilize an internal model that estimates fair premium. The fair premium amount is calculated such that the expected profit (fair premium amount net of expected losses and other expenses) is proportional to an internally-developed risk-based capital amount. Expected losses and our internally developed risk-based capital amounts are projected by our model using the internal credit rating, term, and current par outstanding for each transaction.

For each of the non-corporate CDOs and other derivative transactions discussed above, with the exception of CDOs of ABS and TruPs transactions that are valued using a discounted cash flow analysis, we make an adjustment to the fair premium amounts, as described above under Non-Performance Risk Adjustments on Corporate CDOs, to incorporate our own non-performance risk. The non-performance risk adjustment associated with our CDOs of ABS and our TruPs transactions is incorporated in the fair value as described above; therefore, no separate adjustment is required. These credit derivatives are categorized in Level III of the fair value hierarchy.

Assumed Financial Guaranty Credit Derivatives

In making our determination of fair value for these credit derivatives, we use information provided to us by our counterparties to these reinsurance transactions, which are the primary insurers (the "primaries") of the underlying credits, including the primaries' fair valuations for these credits. The information obtained from our counterparties is not received with sufficient time for us to refine our estimates of the mark-to-market liability as of the balance sheet date. Therefore, the amount recorded as of December 31, 2011, is based on the most recent available financial information, which is reported on a quarterly lag. The lag in reporting is consistent from period to period. The fair value is based on credit spreads obtained by the primaries from market data sources published by third parties (e.g., dealer spread tables for collateral similar to assets within the transactions being valued) as well as collateral-specific spreads provided by trustees or obtained from market sources if such data is available. If observable market spreads are not available or reliable for the underlying reference obligations, then the primaries' valuations are predominantly based on market indices that most closely resemble the underlying reference obligations, considering asset class, credit quality rating and maturity of the underlying reference obligations. In addition, these valuations incorporate an adjustment for non-performance risk. The primaries' models used to estimate the fair value of these instruments include a number of factors, including credit spreads, changes in interest rates and the credit ratings of referenced entities. In establishing our fair value for these transactions, we assess the reasonableness of the primaries' valuations by (1) reviewing the primaries' publicly available information regarding their mark-to-market processes, including methodology and key assumptions, and (2) analyzing and discussing the changes in fair value with the primaries where the changes appear unusual or do not appear materially consistent with credit loss related information when provided by the primaries for these transactions. These credit derivatives are categorized in Level III of the fair value hierarchy.

Other Financial Guaranty VIE Consolidated Assets/Liabilities

We are the primary beneficiary for two other VIEs for which we have provided financial guarantees. These VIEs primarily consist of manufactured housing loans and VIE debt to noteholders in the trust. The fair value of the VIE debt related to these other financial guaranty VIEs is estimated based on prices of comparable securities and spreads observed in the market. The overall net fair value for these transactions is determined using a discounted cash flow analysis. We do not currently estimate any projected claims based on our internal credit analysis, which is based on the current performance of the underlying collateral and the remaining subordination available to support the transaction. The present value of the insured cash flows is determined by using a discount rate that is equal to our CDS rate plus a risk-free rate. We utilize this model to determine the fair value of our exposure to these VIEs, and to derive the fair value of the assets in these VIEs, which are reported within other assets on our consolidated balance sheets.

The assets and VIE debt related to these transactions are categorized in Level III of the fair value hierarchy. Our maximum principal exposure to loss from these transactions is$129.4 million; however, we do not currently expect to pay any claims related to these two VIEs. At December 31, 2011, we recorded $104.0 million of other assets, $103.7 million of VIE debt and $0.3 million of accounts payable and accrued expenses associated with these two VIEs.

NIMS Credit Derivatives, NIMS Derivative Assets and NIMS VIE Debt

NIMS credit derivatives are financial guarantees that we have issued on NIMS. NIMS derivative assets primarily represent derivative assets in the NIMS trusts that we are required to consolidate. NIMS VIE debt represents the debt of consolidated NIMS trusts, which we account for at fair value. The estimated fair value amounts of these financial instruments are derived from internally-generated discounted cash flow models. We estimate losses in each securitization underlying either the NIMS credit derivatives, NIMS derivative assets or NIMS VIE debt by applying expected default rates separately to loans that are delinquent and those that are paying currently. These default rates are based on historical experience of similar transactions. We then estimate the rate of prepayments on the underlying collateral in each securitization, incorporating historical prepayment experience. The estimated loss and rate of prepayments are used to estimate the cash flows for each underlying securitization and NIMS bond, and ultimately, to produce the projected credit losses for each NIMS bond. In addition to expected credit losses, we consider the future expected premiums to be received from the NIMS trust for each credit derivative. The projected net losses are then discounted using a rate of return that incorporates our own non-performance risk, and based on our current CDS spread, results in a reduction of the derivative liability. Since NIMS guarantees are not market-traded instruments, considerable judgment is required in estimating fair value. The use of different assumptions and/or methodologies could have a material effect on estimated fair values. The NIMS credit derivatives, NIMS derivative assets and NIMS VIE debt are all categorized in Level III of the fair value hierarchy. As a result of our having to consolidate our NIMS VIEs, the fair value of derivative assets held by the NIMS VIEs and the NIMS VIE debt are determined by using the same internally-generated valuation model.

Changes in expected principal credit losses on NIMS could impact our fair value estimate. The gross expected principal credit losses were$18.0 million and $135.6 million as of December 31, 2011 and 2010, respectively, represent substantially all of our total NIMS RIF. Our fair value estimate incorporates a discount rate that is based on our CDS spread, which has resulted in a fair value amount that is$10.2 million and $6.3 million less than the expected principal credit losses at December 31, 2011 and 2010, respectively. Changes in the credit loss estimates will impact the fair value directly, reduced only by the present value factor, which is dependent on the timing of the expected losses and our credit spread.

Put Options on CPS and Consolidated CPS VIE Debt

The fair value of our put options on CPS and the CPS VIE debt, in the absence of observable market data, is estimated based on the present value of the spread differential between the current market rate of issuing a perpetual preferred security and the maximum contractual rate of our perpetual preferred security as specified in our put option agreements. In determining the current market rate, consideration is given to any relevant market observations that are available. We purchased substantially all of the securities issued by the three trusts, and we consolidated the assets and liabilities of those trusts during 2010. As of December 31, 2011, there is no consolidated CPS VIE debt because we had purchased all of the CPS in the three trusts and, as such, the put options on CPS are eliminated in consolidation as well.

The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2011:

(In millions)	Level I		Level II		Level III		Total
Assets and Liabilities at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	386.9	$	723.6	$	—	$	1,110.5
State and municipal obligations	—		985.0		62.5		1,047.5
Money market instruments	723.2		—		—		723.2
Corporate bonds and notes	—		700.5		—		700.5
RMBS	—		884.7		45.5		930.2
CMBS	—		190.4		35.4		225.8
CDO	—		—		5.5		5.5
Other ABS	—		97.0		2.9		99.9
Foreign government securities	—		102.9		—		102.9
Hybrid securities	—		341.5		4.8		346.3
Equity securities (1)	116.0		152.4		0.8		269.2
Other investments (2)	—		151.6		6.8		158.4
Total Investments at Fair Value (3)	1,226.1		4,329.6		164.2		5,719.9
Derivative Assets	—		0.2		17.0		17.2
Other Assets (4)	—		—		104.0		104.0
Total Assets at Fair Value	$	1,226.1	$	4,329.8	$	285.2	$	5,841.1
Derivative Liabilities	$	—	$	—	$	126.0	$	126.0
VIE Debt (5)	—		—		228.2		228.2
Total Liabilities at Fair Value	$	—	$	—	$	354.2	$	354.2

______________________

(1) Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

(2) Comprising short-term commercial paper within CPS trusts ($150.0 million) and short-term CDs ($1.6 million) included within Level II, and lottery annuities ($1.6 million) and TruPs held by consolidated VIEs ($5.2 million) included within Level III.

(3) Does not include fixed-maturities held to maturity ($2.6 million) and other invested assets ($61.0 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

(4) Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

(5) Comprising consolidated debt related to NIMS VIEs ($9.4 million) and amounts related to financial guaranty VIEs ($218.8 million).

The following is a list of those assets and liabilities that are measured at fair value by hierarchy level as of December 31, 2010:

(In millions)	Level I		Level II		Level III		Total
Assets and Liabilities at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	1,075.0	$	731.4	$	—	$	1,806.4
State and municipal obligations	—		1,159.7		23.2		1,182.9
Money market instruments	310.9		—		—		310.9
Corporate bonds and notes	—		1,060.4		—		1,060.4
RMBS	—		913.5		52.5		966.0
CMBS	—		173.6		23.0		196.6
CDO	—		—		2.4		2.4
Other ABS	—		131.1		3.3		134.4
Foreign government securities	—		83.5		—		83.5
Hybrid securities	—		318.9		—		318.9
Equity securities (1)	168.4		168.6		2.9		339.9
Other investments (2)	—		150.0		4.6		154.6
Total Investments at Fair Value (3)	1,554.3		4,890.7		111.9		6,556.9
Derivative Assets	—		—		26.2		26.2
Other Assets (4)	—		—		109.7		109.7
Total Assets at Fair Value	$	1,554.3	$	4,890.7	$	247.8	$	6,692.8
Derivative Liabilities	$	—	$	—	$	723.6	$	723.6
VIE Debt (5)	—		—		520.1		520.1
Total Liabilities at Fair Value	$	—	$	—	$	1,243.7	$	1,243.7

______________________

(1) Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

(2) Comprising short-term commercial paper within CPS trusts included within Level II, and lottery annuities ($2.6 million) and TruPs held by consolidated VIEs ($2.0 million) included within Level III.

(3) Does not include fixed-maturities held to maturity ($10.8 million), certain short-term investments ($1.6 million), primarily invested in CDs and time deposits, and other invested assets ($59.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

(4) Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

(5) Comprising consolidated debt related to NIMS VIEs ($141.0 million) and amounts related to financial guaranty VIEs ($379.1 million) that required consolidation as of January 1, 2010, under the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2011:

(In millions)	Beginning Balance at January 1, 2011		Realized and Unrealized Gains (Losses) Recorded in Earnings  (1)			Purchases		Sales		Issuances		Settlements			Transfers Into (Out of) Level III (2)			Ending Balance at December 31, 2011
Investments:
State and municipal obligations	$	23.2	$	1.2		$	39.1	$	0.6	$	—	$	0.4		$	—		$	62.5
RMBS	52.5		(3.1		)	—		—		—		3.9			—			45.5
CMBS	23.0		12.4			—		—		—		—			—			35.4
CDO	2.4		2.7			—		—		—		(0.4		)	—			5.5
Other ABS	3.3		(0.4		)	—		—		—		—			—			2.9
Hybrid securities	—		(0.1		)	0.7		—		—		—			4.2			4.8
Equity securities	2.9		(1.2		)	3.7		1.0		—		—			(3.6		)	0.8
Other investments	4.6		3.2			—		0.7		—		0.3			—			6.8
Total Level III Investments	111.9		14.7			43.5		2.3		—		4.2			0.6			164.2
NIMS derivative assets	11.7		(2.2		)	0.3		—		—		7.7			(0.5		)	1.6
Other assets	109.7		21.5			—		—		—		27.2			—			104.0
Total Level III Assets	$	233.3	$	34.0		$	43.8	$	2.3	$	—	$	39.1		$	0.1		$	269.8
Derivative liabilities, net	$	709.1	$	629.0		$	—	$	—	$	—	$	(30.5	)	$	—		$	110.6
VIE debt	520.1		138.5			—		—		—		153.4			—			228.2
Total Level III Liabilities, net	$	1,229.2	$	767.5		$	—	$	—	$	—	$	122.9		$	—		$	338.8

______________________

(1) Includes unrealized gains relating to assets and liabilities still held as of December 31, 2011, as follows: $12.0 million for investments, $9.4 million for other assets, $579.1 million for derivative liabilities, and $158.5 million for VIE debt.

(2) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

    At December 31, 2011, our total Level III assets approximated 4.9% of total assets measured at fair value and our total Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as Level III.

The following is a rollforward of Level III assets and liabilities measured at fair value for the year ended December 31, 2010:

(In millions)	Beginning Balance at January 1, 2010		VIE Consolidation at January 1, 2010 (1)			Realized and Unrealized Gains(Losses) Recorded in Earnings (2)			Purchases		Sales			Issuances			Settlements					Transfers Into (Out of) Level III  (3)			Ending Balance at December 31, 2010
Investments:
State and municipal obligations	$	24.4	$	—		$	0.1		$	1.4	$	—		$	—		$	2.7				$	—		$	23.2
RMBS	—		44.3			19.6			—		—			—			11.4					—			52.5
CMBS	—		23.8			(0.8		)	—		—			—			—					—			23.0
CDO	—		3.8			(1.8		)	—		(0.4		)	—			—					—			2.4
Other ABS	—		3.5			(0.2		)	—		—			—			—					—			3.3
Hybrid securities	0.6		—			—			—		—			—			—					(0.6		)	—
Equity securities	1.7		—			0.2			0.4		0.1			—			—					0.7			2.9
Other investments	3.8		3.7			(1.6		)	—		1.0			(0.3		)	—					—			4.6
Total Level III Investments	30.5		79.1			15.5			1.8		0.7			(0.3		)	14.1					0.1			111.9
NIMS and CPS derivative assets	44.7		—			(7.7		)	1.3		0.1			(0.1		)	26.4			(4	)	—			11.7
Other assets	—		119.7			18.3			—		—			—			28.3					—			109.7
Total Level III Assets	$	75.2	$	198.8		$	26.1		$	3.1	$	0.8		$	(0.4	)	$	68.8				$	0.1		$	233.3
Derivative liabilities, net	$	214.9	$	(51.8	)	$	551.2		$	—	$	—		$	—		$	(5.2	)			$	—		$	709.1
VIE debt	296.1		253.5			213.5			—		—			—			(243.0		)	(5	)	—			520.1
Total Level III Liabilities, net	$	511.0	$	201.7		$	764.7		$	—	$	—		$	—		$	(248.2	)			$	—		$	1,229.2

______________

(1) Represents the impact of our adoption of the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

(2) Includes unrealized gains (losses) relating to assets and liabilities still held as of December 31, 2010, as follows: $12.6 million for investments, $(1.4) million for NIMS derivative assets, $4.0 million for other assets, $(588.1) million for derivative liabilities, and $(165.7) million for VIE debt.

(3) Transfers are recognized at the end of the period as the availability of market observed inputs change from period to period.

(4) Includes impact of consolidation of VIE from CPS Trust I as of June 30, 2010, in the amount of $27.1 million.

(5) Includes impact of consolidation of VIE from CPS Trust I in the amount of $11.1 million. Offsetting this increase was $186.6 million related to NIMS purchases, $36.3 million related to financial guaranty VIE debt paydowns, and $31.2 million for CPS VIE debt purchases.

At December 31, 2010, our total Level III assets approximated 3.7% of total assets measured at fair value and our total Level III liabilities accounted for 100% of total liabilities measured at fair value. Realized and unrealized gains and losses on Level III assets and liabilities in the rollforward represent gains and losses for the periods in which they were classified as Level III.

Realized and unrealized gains and losses on investments and VIE debt included in Level III are generally recorded in net gains (losses) on other financial instruments. Realized and unrealized gains and losses on Level III derivative instruments are recorded in the change in fair value of derivative instruments.

Other Fair Value Disclosure

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our consolidated balance sheets were as follows as of the dates indicated:

	December 31, 2011				December 31, 2010
(In millions)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Fixed-maturities held to maturity	$	2.6	$	2.7	$	10.8	$	11.4
Short-term investments (carried at cost)	—		—		1.6		1.6
Other invested assets	61.0		62.8		59.6		58.4
Liabilities:
Long-term debt	818.6		471.3		964.8		1,082.5
Non-derivative financial guaranty liabilities	342.3		425.7		406.1		531.1

Fixed-Maturities Held to Maturity—The fair values of fixed-maturity securities are obtained from independent pricing services that use observed market transactions, including broker-dealer quotes and actual trade activity as a basis for valuation.

Short-Term Investments Carried at Cost—These investments are primarily time deposits that are near maturity, and are carried at cost, which approximates fair value for these short-term instruments.

Other Invested Assets—The fair value of these assets, primarily invested in limited partnerships, is estimated based on information within the financial statements provided by the limited partnerships. These interests are accounted for and carried as cost-method investments.

Long-Term Debt—The fair value is estimated based on the quoted market prices for the same or similar issue or on the current rates offered to us for debt of the same remaining maturities. Included in the carrying amount of long-term debt is the impact of the unamortized discount associated with the convertible senior notes issued in November 2010. See Note 13 for additional information.

Non-Derivative Financial Guaranty Liabilities—We estimate the fair value of these non-derivative financial guarantees in a hypothetical market where market participants include other monoline mortgage and financial guaranty insurers with similar credit quality to us, assuming that the net liability related to these insurance contracts could be transferred to these other mortgage and financial guaranty insurance and reinsurance companies.

This fair value estimate of non-derivative financial guarantees includes direct and assumed contracts written, and is based on the difference between the present value of: (1) the expected future contractual premiums, and (2) the fair premium amount to provide the same credit protection assuming a transfer of our obligation to a guarantor of similar credit quality as Radian as of the measurement date.

The key variables considered in estimating fair value include par amounts outstanding (including future periods for the estimation of future installment premiums), expected term, unearned premiums, expected losses and our CDS spread. Estimates of future installment premiums received are based on contractual premium rates.

With respect to the fair premium amount, the accounting standard regarding fair value measurements requires that the non-performance risk of a financial liability be included in the estimation of fair value. Accordingly, the fair premium amount for financial guaranty insurance contracts includes consideration of our credit quality as represented by our CDS spread.

Our ability to accurately estimate the fair value of our non-derivative financial guarantees is limited. There are no observable market data points as a result of the disruption in the credit markets and significant rating agency downgrades. These factors have significantly limited our ability to write new financial guaranty business, except in limited circumstances. We believe that in the absence of a principal market, our estimate of fair value described above in a hypothetical market provides the most relevant information with respect to fair value estimates given the information currently available to us. Due to the volume and geographic diversification of our financial guaranty exposures, in the future we may need to consider other key variables that may influence the fair value estimates. Variables not currently incorporated into our current fair value estimate of non-derivative financial guarantees include the credit spreads of the underlying insured obligations, the underlying ratings of those insured obligations and assumptions about current financial guaranty premium levels relative to the underlying insured obligations' credit spreads.

The carrying value of our non-derivative financial guaranty liabilities consists of unearned premiums, premiums receivable, deferred policy acquisition costs, and reserve for losses and LAE as reported on our consolidated balance sheets.

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Note 4 - Derivative Instruments Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Derivative Instruments [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments

The following table sets forth our gross unrealized gains and gross unrealized losses on derivative assets and liabilities as of the dates indicated. Certain contracts are in an asset position because the net present value of the contractual premium we receive exceeds the net present value of our estimate of the expected future premiums that a financial guarantor of similar credit quality to us would charge to provide the same credit protection, assuming a transfer of our obligation to such financial guarantor as of the measurement date.

	December 31,
(In millions)	2011		2010
Balance Sheets
Derivative assets:
Financial Guaranty credit derivative assets	$	15.4	$	14.5
NIMS assets	1.6		10.9
Other	0.2		0.8
Total derivative assets	17.2		26.2
Derivative liabilities:
Financial Guaranty credit derivative liabilities	106.5		704.4
Financial Guaranty VIE derivative liabilities	19.5		19.2
Total derivative liabilities	126.0		723.6
Total derivative liabilities, net	$	108.8	$	697.4

The notional value of our derivative contracts at December 31, 2011, and December 31, 2010, was $36.5 billion and $41.6 billion, respectively.

The components of the gains (losses) included in change in fair value of derivative instruments are as follows:

	Year Ended December 31,
(In millions)	2011			2010			2009
Statements of Operations
Net premiums earned—derivatives	$	41.7		$	47.1		$	55.7
Financial Guaranty credit derivatives	598.0			(583.2		)	118.0
Financial Guaranty VIE derivatives	(10.7		)	(14.5		)	—
NIMS	(1.6		)	(0.9		)	(6.2		)
Mortgage Insurance domestic and international CDSs	—			—			(4.8		)
Put options on CPS	—			(6.1		)	(56.2		)
Other	1.0			(1.1		)	(6.5		)
Change in fair value of derivative instruments	$	628.4		$	(558.7	)	$	100.0

The valuation of derivative instruments may result in significant volatility in gains and losses from period to period as reported on our consolidated statements of operations. Generally, these gains and losses result, in part, from changes in corporate credit or asset-backed spreads and changes in the creditworthiness of underlying corporate entities or the credit performance of the assets underlying ABS. Additionally, when determining the fair value of our liabilities, we are required to incorporate into the fair value of those liabilities an adjustment that reflects our own non-performance risk and consequently, changes in the market's perception of our non-performance risk also result in gains and losses on our derivative instruments. Any incurred gains or losses (which include any claim payments) on our financial guaranty contracts that are accounted for as derivatives are recognized as a change in fair value of derivative instruments. Because our fair value determinations for derivative and other financial instruments in our mortgage insurance and financial guaranty businesses are based on assumptions and estimates that are inherently subject to risk and uncertainty, our fair value amounts could vary significantly from period to period. See Note 5 for information on our fair value of financial instruments.

The following table shows selected information about our derivative contracts:

($ in millions)	December 31, 2011
	Number of Contracts	Par/ Notional Exposure		Total Net Asset/ (Liability)
Product
NIMS related and other (1)	—	$	—	$	1.8
CDOs	74	29,493.5		(5.1		)
Non-Corporate CDOs and other derivative transactions:
Trust Preferred Securities ("TruPs")	19	1,894.2		(26.5		)
CDOs of commercial mortgage-backed securities ("CMBS")	4	1,831.0		(27.1		)
Other:
Structured finance	8	716.6		(13.4		)
Public finance	24	1,543.5		(9.5		)
Total Non-Corporate CDOs and other derivative transactions	55	5,985.3		(76.5		)
Assumed financial guaranty credit derivatives:
Structured finance	235	899.4		(8.2		)
Public finance	9	138.5		(1.3		)
Total Assumed	244	1,037.9		(9.5		)
Financial Guaranty VIE derivative liabilities (2)	—	—		(19.5		)
Grand Total	373	$	36,516.7	$	(108.8	)

________________

(1) Represents NIMS derivative assets related to consolidated NIMS VIEs. Also includes common stock warrants. Because none of these investments represent financial guaranty contracts that we issued, they cannot become liabilities, and therefore, do not represent additional par exposure.

(2) Represents the fair value of an interest rate swap included in the consolidation of one of our financial guaranty transactions. The notional amount of the interest rate swap does not represent additional par exposure, and therefore, is excluded from this table. See Note 5 for information on our maximum exposure to loss from our consolidated financial guaranty transactions.

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Note 16 - Share-Based and Other Compensation Plans

12 Months Ended

Dec. 31, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based and Other Compensation Plans

Share–Based and Other Compensation Programs

We have an equity compensation plan, the Radian Group Inc. 2008 Equity Compensation Plan (the “2008 Equity Plan”), pursuant to which we grant equity awards. The 2008 Equity Plan replaced our prior equity plan, the 1995 Equity Compensation Plan (the “1995 Equity Plan” and together with the 2008 Equity Plan, the “Equity Plans”). In adopting the 2008 Equity Plan, we agreed not to grant any new awards under the 1995 Equity Plan. The last awards granted pursuant to the 1995 Equity Plan were granted in 2008. All awards granted under the Equity Plans have been in the form of non-qualified stock options, restricted stock, RSUs, stock appreciation rights ("SARs") and phantom stock. The maximum contractual term for all awards under the Equity Plans is 10 years.

The 2008 Equity Plan authorizes the issuance of up to 6,417,000 shares of our common stock, of which there were 3,271,288 shares remaining available for grant as of December 31, 2011 (the "share reserve"). In 2010, performance-based RSUs (equity settled) were granted, which vest in an amount ranging from 0% to 150% of the target award, depending upon the satisfaction of performance criteria at the end of the three-year performance period. For purposes of the share reserve, the performance based RSUs (equity settled) are considered to have been awarded at 150% of target. Each grant of restricted stock, RSUs, phantom stock or performance share awards under the 2008 Equity Plan (other than those settled in cash) reduce the reserve available for grant under the 2008 Equity Plan by 1.19 shares for every share subject to such grant (1.33 shares for grants made prior to May 13, 2009 and 1.14 shares for grants made on and after May 13, 2009 and prior to May 11, 2011). Awards under the 2008 Equity Plan that provide for settlement solely in cash (and not common shares) do not count against the share reserve. Absent this reserve adjustment for restricted stock, RSUs, phantom stock or performance share awards, our shares remaining available for grant under the 2008 Equity Plan would have been 3,605,648 shares as of December 31, 2011.

Unless otherwise described below, awards under the Equity Plans:

• Generally vest 50% on the third and fourth anniversaries of the grant date and require the grantee to remain in service with us through the vesting period, except in the event of the grantee's death, disability, retirement or upon a change of control.

• Generally vest upon a grantee's death, disability, or retirement.

• For awards granted prior to May 13, 2009, awards vest upon a change of control, defined as: (i) the acquisition by any third party of the beneficial ownership of 40% or more of our outstanding common stock (20% or more of our outstanding common stock under the 1995 Equity Plan); (ii) the purchase by any third party of substantially all of our assets; or (iii) during any 24-month period, a change in 75% of the members of the Board of Directors with 75% of the prior members of the Board of Directors not approving such change.

• Beginning in May 2009, awards granted under the 2008 Equity Plan provide for “double trigger” vesting in the event of a change of control, meaning that awards will vest in connection with a change of control only in the event the grantee's employment is terminated by us without cause, or the grantee terminates employment for “good reason,” in each case within 90 days before or one year after the change of control.

We estimate that the vesting of awards as a result of a change in control, including "double trigger" vesting in connection with a change in control, would result in a pre-tax accounting charge to us of approximately $7.4 million, representing an acceleration of compensation expense.  

In addition to the 2008 Equity Plan, we have a long-term performance-based incentive cash program, that is conducted pursuant to two plans, the Radian Group Inc. 2008 Long-Term Performance Cash Plan (the “Officer LTI Plan”) and the 2008 Executive Long-Term Incentive Cash Plan (the “Executive LTI Plan” and together with the Officer LTI Plan, the “Cash Based LTI Plans”). Participants in the Cash Based LTI Plans include certain officers of Radian Group and our mortgage insurance subsidiaries. We have granted one award under the Cash Based LTI Plans pursuant to which performance was correlated directly with our common stock price. In 2008, we granted an award under the Officer LTI Plan for which performance was based on our stock price growth (above a minimum threshold price), with a range of possible payouts corresponding to ranges of stock prices achieved. See Officer LTI Plan (Cash Settled).

In addition to the 2008 award under the Officer LTI Plan, the Compensation Committee has granted cash incentive awards under the Cash Based LTI Plans that are not directly correlated with our stock price, but contain discretionary payments based on various fundamental business metrics. See Other Compensation Programs below.

We use the Monte Carlo valuation model to determine the fair value of all cash settled awards where stock price is a factor in determining the vesting, as well as for cash or stock settled performance awards where there exists a similar stock price based market condition. The Monte Carlo valuation model incorporates multiple input variables, including expected life, volatility, risk-free rate of return and dividend yield for each award to estimate the probability that a vesting condition will be achieved. In determining these assumptions for the Monte Carlo valuations, we consider historic and observable market data.

Depending on certain characteristics of the awards granted under the various compensation programs noted above, they are accounted for as either liabilities or equity instruments. The following table summarizes awards outstanding and compensation expense recognized for each type of share-based award as of and for the periods indicated:

	December 31,
(In thousands)	2011					2010				2009
Share-based Compensation Programs	Liability Recorded/ Equity Instruments Outstanding		Compensation Cost Recognized (1)			Liability Recorded/ Equity Instruments Outstanding		Compensation Cost Recognized (1)		Liability Recorded/ Equity Instruments Outstanding		Compensation Cost Recognized (1)
Liabilities:
RSUs—Cash Settled	$	5,229	$	480		$	4,788	$	1,774	$	3,014	$	3,014
SARs—Cash Settled	1,156		(5,229		)	6,430		3,951		2,169		1,866
Officer LTI Plan	—		32			8,397		5,618		2,778		2,322
Liabilities	$	6,385	(4,717		)	$	19,615	11,343		$	7,961	7,202
Equity:
Stock Options	3,472,762		1,558			3,227,411		2,214		3,264,262		2,619
Phantom Stock	518,441		5			518,441		3,183		518,441		1,902
RSUs—Equity Settled	505,183		1,717			216,300		1,272		—		—
Restricted Stock	324,778		120			399,575		2,036		848,823		3,210
Employee Stock Purchase Plan (“ESPP”)			348					321				227
Equity			3,748					9,026				7,958
Total all share-based plans			$	(969	)			$	20,369			$	15,160

______________ 

(1) For purposes of calculating compensation cost recognized, we consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. Under the terms of our awards, legal vesting upon retirement occurs when the grantee actually separates from service.

The following table reflects additional information regarding all share-based awards for the years indicated:

	Year Ended December 31,
($ in thousands except per-share amounts)	2011			2010		2009
Total compensation cost recognized	$	(969	)	$	20,369	$	15,160
Less: Costs deferred as acquisition costs	171			551		962
Stock-based compensation expense impact on net income (loss) before income taxes—increase	$	(1,140	)	$	19,818	$	14,198
Stock-based compensation expense impact on net income (loss)—increase	$	(741	)	$	12,882	$	9,229
Excess tax benefits from stock-based payment arrangements	$	4		$	—	$	—
Stock-based compensation expense impact on diluted income (loss) per share—(decrease) increase	$	(0.01	)	$	0.11	$	0.11

RSUs (Cash Settled)

Performance-Based RSUs—In 2011 and 2010, the Compensation and Human Resources Committee of our board of directors (the “Compensation Committee”) granted a total of 3,004,730 and 162,500, respectively, of performance-based RSUs (to be settled in cash) to eligible officers under the 2008 Equity Plan. These performance-based RSUs entitle grantees to a cash amount equal to the fair market value of RSUs that have vested at the end of a three-year performance period.

Vesting of the awards granted in 2011 is based on the performance of Radian Group's total stockholder return (“TSR”) compared to the median TSR of a group of companies consisting of our two most comparable mortgage insurance peers and the companies listed on the NASDAQ 100 Financial Index (collectively, the "Peer Group"), with a maximum payout at the end of the three-year performance period of 200% of a grantee's target number of RSUs.

Vesting of the 2010 awards is based on two factors, both equally weighted at 50% of the total performance target: (1) the performance of Radian Group's relative TSR compared to the TSRs of an industry peer group, with a maximum payout of 100% of the peer target (i.e., 50% of the total performance target); and (2) the performance of Radian Group's relative TSR compared to the TSRs of companies included in S&P MidCap 400® index, with a maximum payout of 150% of the index target (i.e., 50% of the total performance target). Upon the occurrence of certain corporate events involving one or more companies included in the industry peer group, the performance goals for the entire award (between 0% and 150% of the total target award) would then be based on Radian Group's relative TSR compared to the TSRs of companies included in the S&P MidCap 400® index.

In general, pursuant to the terms of the 2011 award agreement, in the event of a grantee's retirement, the award will continue to vest and be paid in accordance with the achievement of the performance goals as of the stated vesting date. Each RSU was granted at full value with no exercise price. The RSUs do not entitle the grantees to voting or dividend rights.

Timed-Vested RSUs—In 2010 and 2009, the Compensation Committee awarded 108,921 and 423,503, respectively, of time-vested RSUs (to be settled in cash) to our non-employee directors under the 2008 Equity Plan. The estimated fair value of the time-vested RSUs is based on our common stock price on the measurement date. These RSU awards entitle our non-employee directors to a cash amount equal to the closing price of our common stock on the NYSE on the conversion date (generally defined as a director's termination of service with us). These RSU awards vest in their entirety three years from the date of grant, or earlier, upon the director's retirement, death or disability.

SARs (Cash Settled)

In 2010 and 2009, the Compensation Committee awarded 1,623,500 and 192,100 cash-settled SARs, respectively, under the 2008 Equity Plan. The award of SARs entitles grantees to receive a cash amount equal to the excess of the closing share price of our common stock on the date of exercise over the grant price (the closing share price of our common stock on the date of grant). The exercise prices of the SARs awarded in 2010 and 2009 were $10.42 and $2.68 per share, respectively. As of December 31, 2011, the estimated fair value of the SARs granted in 2010 and 2009 was $1.43 and $0.96 per share, respectively. The SARs have a five-year term.

Officer LTI Plan (Cash Settled)

The Officer LTI Plan is structured as a performance-based, long-term cash incentive plan that consists of grants of cash-settled performance awards. The Compensation Committee administers the Officer LTI Plan and is responsible for, among other items, establishing the target values of awards to participants and selecting the specific performance factors. At the end of each performance period, the Compensation Committee determines, at its discretion, the specific cash payout to each participant, which may range from 0% to 200% of the amount of the target award, based on the Compensation Committee's evaluation of our overall corporate performance and the degree to which each of the performance measures have been satisfied.

For the 2008 grant discussed above, performance over the performance period (July 1, 2008 through December 31, 2010), was based on our stock price growth (above a minimum threshold price), with a range of possible payouts corresponding to ranges of stock prices achieved. In February 2011, we paid $8.4 million related to these awards, representing a payout range of 147% to 172% of the target awards.

We used the Monte Carlo valuation model to determine the fair value of the Officer LTI awards granted in 2008. In 2010, we adjusted the expense recorded to the amount of the expected payout, calculated based on the average stock price for the month of December 2010, in accordance with the plan.

Non-Qualified Stock Options

Information with regard to stock options for the periods indicated is as follows:

	Number of Shares		Weighted Average Exercise Price Per Share
Outstanding, December 31, 2010	3,227,411		$	28.63
Granted	667,586		4.05
Exercised	—		—
Forfeited	(77,347	)	6.17
Expired	(344,888	)	33.00
Outstanding, December 31, 2011	3,472,762		23.97
Exercisable, December 31, 2011	2,410,123		32.33
Available for grant, December 31, 2011	3,271,288

The weighted average fair value per share of the stock options granted during 2011 and 2010 was $3.33 and $8.70, respectively. No stock options were granted during 2009. There were no stock options exercised in 2011, 2010 or 2009. There was no intrinsic value for the stock options outstanding at December 31, 2011, due to the price of our common stock relative to the exercise prices for such stock options. The total intrinsic value of options outstanding at December 31, 2010 and 2009 was $2.5 million and $2.2 million, respectively.

Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the exercise price is less than the treasury stock repurchase price, and from treasury stock when the exercise price is greater than the treasury stock repurchase price.

The table below summarizes information regarding fully vested share options as of December 31, 2011:

($ in millions, except per-share amounts)	Outstanding and Exercisable
Number of options vested	2,410,123
Fair value of options vested during the year	$	0.3
Weighted-average exercise price per share	$	32.33
Aggregate intrinsic value (excess market price over exercise price)	$	—
Weighted-average remaining contractual term of options (in years)	2.0

The following table summarizes information concerning outstanding and exercisable options at December 31, 2011:

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$2.48	444,800	3.6	$	2.48	222,400	$	2.48
$3.58 – $7.06	620,639	6.4	4.37		—	—
$10.42	219,600	5.4	10.42		—	—
$20.34	980,000	2.7	20.34		980,000	20.34
$35.79 – $46.39	558,701	0.6	41.12		558,701	41.12
$48.39 – $56.03	649,022	0.7	53.08		649,022	53.08
	3,472,762	2.9			2,410,123

We use the Black-Scholes valuation model in determining the grant date fair value of stock options issued to employees and non-employee directors. This model was used to estimate the fair value of the stock options granted on the date of grant, using the assumptions noted in the following table:

	Year Ended December 31,
	2011		2010		2009
Expected life (years) (1)	6.00		6.00		n/a
Risk-free interest rate (2)	1.88	%	2.85	%	n/a
Volatility (3)	114.51	%	110.83	%	n/a
Dividend yield	0.28	%	0.10	%	n/a

 ______________

(1) In 2011 and 2010, the expected life of stock options granted was estimated to be less than the full term of the options awarded. The expected life is estimated using historical data.

(2) The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant.

(3) Volatility determined at the date of grant using historical share price volatility and expected life of each award.

For stock option awards granted in 2011, in addition to the time-based vesting requirements, the options only will vest if the closing price of our common stock on the NYSE exceeds $4.48 (125% of the option exercise price) for ten consecutive trading days ending on or after the third anniversary of the date of grant.

We elected to apply the short-cut method in accounting for the windfall tax benefits under the accounting standard regarding share-based payment. Should future offsets to the windfall as a result of cancellations, expirations or exercise shortfalls exceed the balance of $20.2 million at December 31, 2011, the excess would be reflected in the consolidated statements of operations.

Phantom Stock

The Compensation Committee has granted phantom stock awards under the Equity Plans, which entitle grantees to receive shares of our common stock on the conversion date (generally defined as a grantee's termination of service with us). The estimated fair value of phantom stock is based on the closing share price of our common stock as reported by the NYSE on the date of grant. All outstanding shares of phantom stock were fully vested as of December 31, 2010. Each share of phantom stock was granted at full value with no exercise price and accrues dividend equivalents until the conversion date. Upon conversion, all phantom stock will be paid in whole shares of our common stock, with fractional shares paid in cash. At December 31, 2011, there were approximately 6,030 dividend-equivalent phantom shares accrued that were not included in the total number of our outstanding shares. The cost recognized for these awards is calculated using the closing share price of our common stock as reported by the NYSE on the date of grant and was recognized on a straight line basis over the vesting period. There have been no shares of phantom stock granted since 2008.

RSUs (Equity Settled)

Performance-Based RSUs—In 2010, the Compensation Committee granted a total of 203,300 performance-based RSUs to be settled in common stock. No performance-based RSUs (equity settled) were awarded in 2011. The performance, vesting conditions and potential payouts relative to target for the 2010 performance-based RSUs are the same as those described above under “RSUs (Cash Settled)—Performance Based RSUs” for awards granted in 2010.

The grant date fair value of performance-based RSUs is determined using the Monte Carlo valuation model. The following are assumptions used in our calculation of the 2010 grant date fair value of performance-based RSUs to be settled in common stock:

	2010
Expected life	3 years
Risk-free interest rate	1.4	%
Volatility	154.5	%
Dividend yield	0.12	%

Time-Vested RSUs—In 2011, the Compensation Committee granted a total of 323,866 shares of time-vested RSUs to be settled in common stock, including 77,027 shares awarded to employees and 246,839 shares awarded to non-employee directors. The grant date fair value of the time-vested RSUs was calculated based on the fair market value of our common stock on the NYSE on the date of grant and is recognized over the vesting period. The 2011 awards to employees vest at the end of four years, while the awards to non-employee directors vest at the end of three years.

Information with regard to RSUs to be settled in stock for the periods indicated is as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Unvested, December 31, 2010	216,300		$	11.72
Granted	323,866		5.86
Vested	—		—
Forfeited	(34,983	)	10.03
Unvested, December 31, 2011	505,183		$	8.08

Restricted Stock

In 2009, the Compensation Committee granted 375,500 shares of restricted stock. No shares of restricted stock were granted during 2011 and 2010. The estimated fair value of restricted stock is based on the closing share price of our common stock on the NYSE on the date of grant. All restrictions imposed under a restricted stock grant lapse after the applicable restriction period. The holders of restricted stock are entitled to vote their restricted shares and to receive cash dividends. Each share of restricted stock is granted at full value with no exercise price. The cost recognized for these awards is based on the fair value at date of grant and is recognized on a straight line basis over the vesting period.

Information with regard to restricted stock for the periods indicated is as follows:

	Number of Shares		Weighted Average Grant-Date Fair Value Per Share
Unvested, December 31, 2010	399,575		$	2.69
Granted	—		—
Vested	(66,247	)	3.06
Forfeited	(8,550	)	2.64
Unvested, December 31, 2011	324,778		$	2.67

Employee Stock Purchase Plan

We have an Employee Stock Purchase Program. The Radian Group Inc. 2008 Employee Stock Purchase Plan (the “2008 ESPP Plan”) was approved by our board of directors in December 2008 and was approved by our stockholders at our 2009 Annual Meeting of Stockholders. A total of 2,000,000 shares of our authorized but unissued common stock have been reserved for issuance under the 2008 ESPP Plan. Under the 2008 ESPP Plan, we sold 158,676, 99,781 and 172,192 shares to employees during the years ended December 31, 2011, 2010 and 2009, respectively.

The 2008 ESPP Plan was designed to allow eligible employees to purchase shares of our common stock at a discount of 15% off the lower of the fair market value of our common stock at the beginning-of-period or end-of-period (each period being the first and second six calendar months in a calendar year).

The following are assumptions used in our calculation of ESPP compensation expense during 2011:

	January 1, 2011		July 1, 2011
Expected life	6 months		6 months
Risk-free interest rate	0.45	%	0.39	%
Volatility	69.96	%	79.68	%
Dividend yield	0.06	%	0.12	%

Unrecognized Compensation Expense

As of December 31, 2011, 2010 and 2009, unrecognized compensation expense related to the unvested portion of all of our stock-based awards was approximately $7.4 million, $7.8 million and $6.9 million, respectively. Absent a change of control under the Equity Plans, this expense is expected to be recognized over a weighted average period of approximately 2.4 years.

Other Compensation Programs

In 2008, the Compensation Committee granted performance awards under the Executive LTI Plan with target award opportunities ranging from approximately 45% to 300% of the participants' base salary. The three-year performance period began July 1, 2008 and ended June 30, 2011. The 2008 Cash Based LTI Award had a payout potential of between 0% and 400% of each participant's target award, with the payout to be determined based on our performance and the award participant's performance over the performance period against the following performance goals: (i) mortgage insurance market share; (ii) mortgage insurance credit quality; (iii) stock price growth; (iv) expense management; and (v) capital management. In August 2011, we paid $8.2 million related to these awards, representing a range of 144% to 300% of the target awards.

In 2009 and 2010, the Compensation Committee granted awards under the Cash Based LTI Plans with performance for 50% of the award measured over a three-year performance period and 50% of the award measured over a four-year performance period based on the following performance measures: (1) mortgage insurance market share; (2) capital management; (3) mortgage insurance credit quality; (4) expense management; and (5) operating profitability. No awards were granted in 2011 under the Cash Based LTI Plans. Compensation costs recognized related to non-share-based awards under the Officer LTI Plan were $0.5 million, $1.1 million and $3.0 million for the years ended December 31, 2011, 2010 and 2009, respectively. Compensation costs recognized related to non-share-based awards under the Executive LTI Plan were $5.5 million, $3.1 million and $2.7 million for the years ended December 31, 2011, 2010 and 2009, respectively.

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Note 12 - Financial Guaranty Insurance Contracts Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Financial Guaranty Insurance Contracts [Abstract]

Financial Guarantee Insurance Contracts [Text Block]

Financial Guaranty Insurance Contracts

The risk management function is structured by area of expertise and includes the following areas: risk analytics, public finance, structured finance, and portfolio management.

Our public finance and structured finance groups utilize several tools to monitor our directly insured portfolio. We generally require, for each of our directly insured transactions, the delivery of periodic financial information, including covenant compliance reports that are reviewed by the risk manager assigned to the particular credit. For substantially all of our direct public finance credits, each risk manager prepares regular written surveillance summaries for each credit that contain financial analysis of the credits. For our larger direct credits and for those credits for which our initial analysis indicates that a more comprehensive review is warranted, the risk manager prepares a more detailed surveillance report that includes additional financial analysis, together with the manager's reassessment of the internal rating for the transaction. For our directly insured corporate CDO, TruPs CDO and CMBS CDO transactions, we perform quarterly stress analyses and we update our financial analysis on our TruPs CDO and CMBS CDO transactions at least quarterly. We monitor not only the nominal exposure for each obligor for which we provide protection in our corporate CDO transactions, but also risk-adjusted measures, taking into account, among other factors, our assessment of the relative risk that would be represented by direct exposure to the particular obligor and the remaining subordination in the transactions in which we are exposed to a particular obligor.

Upon continued performance deterioration, we may conduct additional or more frequent reviews of a credit, downgrade the internal credit rating for a credit, or if appropriate, move the credit to the financial guaranty Watch List. All amendments, consents and waivers related to a transaction are also reviewed and evaluated by the appropriate risk manager. In addition to individual credit analysis, the risk management department is responsible for following economic, environmental and regulatory trends and for determining their potential impact on our insured portfolio.

The portfolio management group oversees all portfolio level analysis and reporting of our insured financial guaranty portfolio. This group is also primarily responsible for the analysis of our assumed financial guaranty portfolio and the oversight of the credit risk relationship with our ceding companies. The head of the portfolio management team directs the “Watch and Reserve” process (which is more fully described below), and chairs the quarterly Watch and Reserve meetings, at which reserve recommendations are made on the portfolio.

The risk analytics team is responsible for the analysis of market risk factors and their potential impact on our loss estimates. Key market risk factors, including interest-rate risk and credit spreads, are assessed on an individual credit and insured portfolio basis. The risk analytics team has developed quantitative tools and models to measure these risks, which incorporate the risk assessments and internal ratings assigned by each of the teams within risk management. Additionally, we use an internal economic capital methodology to attribute economic capital to each individual credit exposure within our insured portfolio. This methodology relies heavily on our ability to quantify the individual risks of default and prepayment underlying each transaction in our insured portfolio. Economic capital is also the basis for calculating risk-adjusted returns on our capital, which allows us to evaluate the credit risk relative to the premium received.

In our financial guaranty reinsurance business, the primary obligation for assessing and mitigating claims rests with our ceding companies. To help align the ceding company's interests with ours, we generally have required that the ceding company retain a significant portion of the exposure on any single risk that we reinsure. Our portfolio management group is responsible for the periodic diligence and evaluation of the underwriting and surveillance capabilities of the ceding companies. Each of the ceding companies is obligated to provide us with quarterly updates to their own watch and reserve lists, including reserve information. In the event that we have identified a potential deficiency in the surveillance activities of a ceding company, appropriate personnel in our risk management department may conduct an independent analysis to the extent adequate information is available. We also may have an independent view on assumed credits where we also have direct exposure based on the information obtained through our independent credit review. As a result, we may assess credits and establish reserves based upon information in addition to that received from the ceding company.

Our risk management department reviews both performing and under-performing transactions. Performing credits generally have investment-grade internal ratings, denoting nominal to moderate credit risk. However, claim liabilities may be established for performing credits if the expected losses on the credit exceed the unearned premium revenue for the contract based on the present value of the expected net cash outflows. If our risk management department concludes that a directly insured transaction should no longer be considered performing, it is placed in one of three designated watch list categories for deteriorating credits: Special Mention, Intensified Surveillance or Case Reserve. Assumed exposures in financial guaranty's reinsurance portfolio are generally placed in one of these categories if the ceding company for such transaction downgrades it to an equivalent watch list classification. However, should our financial guaranty risk management group disagree with the risk rating assigned by the ceding company, we may assign our own risk rating rather than use the risk rating assigned by the ceding company.

Our financial guaranty business has a Watch and Reserve Committee that meets at least quarterly to review under-performing credits and establish reserves for transactions. The Watch and Reserve Committee is chaired by the head of the portfolio management group and includes senior management, credit, legal and finance personnel from both the financial guaranty business and Radian Group. Radian Group’s board of directors has formed a Credit Committee of independent directors to assist the board in its oversight responsibilities for our credit risk management policies and procedures, including heightening board-level awareness of the impact of developing risk trends in our portfolio. Our risk management group updates this committee, no less frequently than on a quarterly basis, on all aspects of risk management, including portfolio/sector analysis, risk management policies and Watch and Reserve Committee recommendations and decisions. The following is additional information regarding financial guaranty's categories for deteriorating credits:

Special Mention. This category includes insured transactions that are internally rated no more than two rating levels below investment-grade. Although these insured transactions typically are not performing as expected, we have determined that such transactions are not expected to have severe, prolonged stress and we do not believe that claim payments are imminent. The credits in this category could have all or some of the following characteristics:

• non-investment-grade obligations with increasing credit risk, but with the possibility of recovering and returning to investment-grade levels;

• slight probability of payment default due to current adverse economic conditions and operating challenges;

• limited capacity for absorbing volatility and uncertainty;

• vulnerability to further downward pressure, which could lead to difficulty in covering future debt obligations; and

• requires additional monitoring by the risk manager to evaluate developing, potentially adverse credit trends.

Direct and assumed exposures in this category that satisfy certain criteria, including minimum outstanding par thresholds, are typically reviewed annually or more frequently if there is a change to the credit profile. Other exposures that do not satisfy applicable criteria are reviewed at the discretion of the risk manager, senior management, the Watch and Reserve Committee Chairperson or the Chief Risk Officer for our financial guaranty business.

Due to the additional efforts involved in monitoring Special Mention credits, consultants and/or legal counsel may be engaged to assist in claim prevention or loss mitigation strategies.

Intensified Surveillance. This category includes transactions in financial guaranty's insured portfolio that are internally rated below investment-grade and indicate a severe and often permanent adverse change in the transaction's credit profile. Transactions in this category are still performing, meaning they have not yet defaulted on a payment, but our risk management department has determined that there is a substantial likelihood of default. Transactions that are placed in this category may have some or all of the following characteristics:

• non-investment-grade transactions with high credit risk and low possibility of recovery back to performing levels;

• impaired ability to satisfy future payments;

• debtors or servicers with distressed operations that we believe have a questionable ability to continue operating in the future without external assistance from government and/or private third parties;

• requires frequent monitoring and risk management action to prevent and mitigate possible claims; and

• requires the allocation of claim liability reserves.

Insured transactions are generally elevated into this category from the Special Mention list as a result of continuing declining credit trends. Occasionally, however, transactions may enter this category directly due to an unexpected financial event that leads to rapid and severe deterioration. Direct and assumed exposures in this category that satisfy certain criteria, including minimum outstanding par thresholds, are generally reviewed quarterly. Other exposures that do not satisfy applicable criteria are reviewed at the discretion of the risk manager, senior management, the Watch and Reserve Committee Chairperson or the Chief Risk Officer for our financial guaranty business.

Consultants and/or legal counsel are regularly engaged in connection with these transactions to assist in claim prevention and loss mitigation strategies due to the remediation efforts necessary to prevent or minimize losses.

Case Reserve. This category consists of insured transactions where a payment default on the insured obligation has occurred. LAE reserves are normally required as remediation efforts often continue for credits classified at this level to mitigate claims. Direct and assumed exposures in this category that satisfy certain criteria, including minimum outstanding par thresholds, are generally reviewed quarterly.

In our directly insured financial guaranty business, we establish loss and LAE reserves on our non-derivative financial guaranty contracts. The assumptions used to determine reserves for directly insured credits are based upon the analysis as more fully described above. In our financial guaranty reinsurance business, the primary obligation for assessing and mitigating claims rests with the ceding company. We generally establish reserves for our assumed Watch List credits based upon information provided by the ceding company.

In general, in response to deterioration in the credit performance of a transaction, risk management works with the appropriate parties in an attempt to avoid a default or to minimize the claims that we may be obligated to pay on our policy. Loss mitigation can consist of:

• restructuring the obligation;

• enforcing available security arrangements;

• working with the issuer to work through or to find alternatives to mitigate the impact of financial management or potential political problems;

• when appropriate, exercising applicable rights to replace servicers, trustees, advisers or the other parties responsible for the performance of the transaction; and

• purchasing the insured obligation.

Issuers typically are under no obligation to restructure insured transactions to prevent losses, but often will cooperate to avoid being associated with an obligation that experiences losses. When appropriate, we discuss potential settlement options regarding particular obligations with appropriate parties. On occasion, loss mitigation may include an early termination of our obligations, which could result in payments to or from us. To determine the appropriate loss mitigation approach, we generally consider various factors relevant to such insured transaction, which may include:

• the current and projected performance of the underlying obligation (both on an expected case basis and stressed for more adverse performance and/or market circumstances than we expect);

• the likelihood that we will pay a claim in light of credit deterioration and reductions in available payment reserves and existing subordination;

• our total exposure to the obligation;

• expected future premium payments from the credit;

• the potential impact on our capital position; and

• the cost to us of pursuing mitigation remedies.

The following table includes information as of December 31, 2011, regarding our financial guaranty claim liabilities, segregated by the surveillance categories that we use in monitoring the risks related to these contracts:

	Surveillance Categories
($ in millions)	Performing		Special Mention		Intensified Surveillance		Case Reserve		Total
Number of policies	16		135		61		106		318
Remaining weighted-average contract period (in years)	23		18		21		25		20
Insured contractual payments outstanding:
Principal	$	58.1	$	1,080.3	$	370.8	$	358.8	$	1,868.0
Interest	12.6		624.6		198.8		184.4		1,020.4
Total	$	70.7	$	1,704.9	$	569.6	$	543.2	$	2,888.4
Gross claim liability	$	0.4	$	15.7	$	114.5	$	103.9	$	234.5
Less:
Gross potential recoveries	—		0.7		60.0		83.2		143.9
Discount, net	0.1		3.3		10.8		2.2		16.4
Net claim liability	$	0.3	$	11.7	$	43.7	$	18.5	$	74.2
Unearned premium revenue	$	0.2	$	25.3	$	7.7	$	—	$	33.2
Claim liability reported in the balance sheet	$	0.2	$	3.6	$	38.2	$	18.5	$	60.5
Reinsurance recoverables	$	—	$	—	$	—	$	—	$	—

Included in accounts and notes receivable and unearned premiums on our consolidated balance sheets are the present value of premiums receivable and unearned premiums that are received on an installment basis. The premiums receivable is net of commissions on assumed reinsurance business. The present values of premiums receivable and unearned premiums that are received on an installment basis as of December 31, 2011 and 2010 are as follows:

	December 31,
(In millions)	2011		2010
Premiums receivable	$	34.3	$	44.0
Unearned premiums	39.8		60.5

The accretion of these balances is included either in premiums written and premiums earned for premiums receivable or policy acquisition costs for commissions on our consolidated statements of operations. The amount of the accretion included in premiums written, premiums earned and policy acquisition costs for the years ended December 31, 2011 and 2010 was as follows:

	December 31,
(In millions)	2011		2010
Premiums written	$	1.2	$	1.5
Premiums earned	1.2		1.5
Policy acquisition costs	0.3		0.3

The weighted-average risk-free rate used to discount the premiums receivable and premiums to be collected was 2.6% at December 31, 2011.

The following table shows the nominal (non-discounted) premiums, net of commissions that are expected to be collected on financial guaranty contracts with installment premiums, included in premiums receivable as of December 31, 2011. See Note 21 for the financial impact of the Assured Transaction executed in January 2012.

(In millions)	Future Expected Premium Payments
1st quarter 2012	$	1.1
2nd quarter 2012	1.8
3rd quarter 2012	1.4
4th quarter 2012	0.7
2012	5.0
2013	3.9
2014	1.5
2015	2.9
2016	2.6
2012 - 2016	15.9
2017 - 2021	10.1
2022 - 2026	6.8
2027 - 2031	4.4
After 2031	5.9
Total	$	43.1

The following table shows the rollforward of the net present value of premiums receivable as of December 31, 2011 and 2010:

	December 31,
(In millions)	2011			2010
Balance at January 1	$	44.0		$	54.4
Payments received	(5.0		)	(7.1		)
Accretion	0.9			1.3
Adjustments to installment premiums	(0.4		)	(1.5		)
Foreign exchange revaluation	0.8			(1.3		)
Recaptures/commutation	(6.0		)	(1.8		)
Balance at December 31	$	34.3		$	44.0

Premiums earned were affected by the following for the years ended December 31, 2011 and 2010:

	December 31,
(In millions)	2011		2010
Refundings	$	27.2	$	35.8
Recaptures/Commutations	2.8		—
Adjustments to installment premiums, gross of commissions	0.4		0.4
Unearned premium acceleration upon establishment of case reserves	3.2		1.4
Foreign exchange revaluation, gross of commissions	1.1		(1.4		)
Policy cancellations	—		2.3
Total adjustment to premiums earned	$	34.7	$	38.5

The following table shows the expected contractual premium revenue from our existing financial guaranty portfolio, assuming no prepayments or refundings of any financial guaranty obligations, as of December 31, 2011. See Note 21 for the financial impact of the Assured Transaction executed in January 2012.

(In millions)	Ending Net Unearned Premiums		Unearned Premium Amortization		Accretion		Total Premium Revenue
1st quarter 2012	$	394.4	$	9.5	$	0.3	$	9.8
2nd quarter 2012	385.5		8.9		0.3		9.2
3rd quarter 2012	376.8		8.7		0.3		9.0
4th quarter 2012	368.3		8.5		0.3		8.8
2012	368.3		35.6		1.2		36.8
2013	333.1		35.2		0.9		36.1
2014	300.8		32.3		0.9		33.2
2015	271.9		28.9		0.8		29.7
2016	245.7		26.2		0.7		26.9
2012 – 2016	245.7		158.2		4.5		162.7
2017 – 2021	137.8		107.9		2.9		110.8
2022 – 2026	66.4		71.4		1.9		73.3
2027 – 2031	27.0		39.4		1.2		40.6
After 2031	—		27.0		1.3		28.3
Total	$	—	$	403.9	$	11.8	$	415.7

The following table shows the significant components of changes in our financial guaranty claim liability for the years ended December 31, 2011, 2010 and 2009, excluding $2.5 million, $4.3 million and $6.6 million, respectively, related to our trade credit reinsurance and surety business, which is excluded from the accounting standard regarding accounting for financial guaranty insurance contracts by insurance enterprises.

	Year Ended December 31,
(In millions)	2011			2010			2009
Claim liability at January 1	$	67.4		$	121.8		$	211.5
Incurred losses and LAE:
Increase/(decrease) in gross claim liability	68.1			86.2			(6.0		)
Increase in gross potential recoveries	(76.1		)	(74.2		)	(42.6		)
Decrease/(increase) in discount	7.5			(1.9		)	69.6
Decrease/(increase) in unearned premiums	4.6			(1.1		)	20.7
Incurred losses and LAE	4.1			9.0			41.7
Paid losses and LAE:
Current year	—			(1.6		)	(25.4		)
Prior years	(11.0		)	(61.8		)	(106.0		)
Paid losses and LAE	(11.0		)	(63.4		)	(131.4		)
Claim liability at December 31	$	60.5		$	67.4		$	121.8
Components of incurred losses and LAE:
Claim liability established in current period	$	2.2		$	1.7		$	54.1
Changes in existing claim liabilities	1.9			7.3			(12.4		)
Total incurred losses and LAE	$	4.1		$	9.0		$	41.7
Components of decrease/(increase) in discount:
Decrease/(increase) in discount related to claim liabilities established in current period	$	0.2		$	(6.3	)	$	(4.7	)
Decrease in discount related to existing claim liabilities	7.3			4.4			74.3
Total decrease/(increase) in discount	$	7.5		$	(1.9	)	$	69.6

Our financial guaranty loss reserve estimate involves significant judgment surrounding the estimated probability of the likelihood, magnitude and timing of each potential loss based upon different loss scenarios. The probabilities, assumptions and estimates we use to establish our financial guaranty loss reserves are subject to uncertainties, particularly given the current economic and credit environments, including uncertainties regarding our public finance municipal exposures and international sovereign risk exposures. We continue to monitor the uncertainties surrounding our portfolio, and it is possible that the actual losses paid could differ materially from our present estimates.

As of December 31, 2011, we have $3.2 billion of net par outstanding related to international public finance obligations, including $495.4 million of sovereign risk. Our sovereign risk to the Stressed Eurozone Countries was as follows: Spain $47.0 million, Greece $30.1 million, Italy $22.4 million and Portugal $1.3 million. We had no exposure to Ireland at December 31, 2011. We have reserves for our exposure to Greece of $4.4 million at December 31, 2011.

The weighted-average risk-free rates used to discount the gross claim liability and gross potential recoveries were as follows, as of the dates indicated:

December 31, 2011	2.80	%
December 31, 2010	3.69	%
December 31, 2009	3.81	%
December 31, 2008	2.53	%

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Note 11 - Reserve for Premium Deficiency Second Lien Premium Deficiency Reserve (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Second Lien Premium Deficiency Reserve [Roll Forward]
Balance at January 1	$ 10,736
Balance at December 31	3,644	10,736
Change in reserve for premium deficiency	(7,092)	(14,621)	(61,504)
Mortgage Insurance Segment
Second Lien Premium Deficiency Reserve [Roll Forward]
Balance at January 1	10,736	25,357
Incurred losses recognized in loss reserves	(11,143)	(10,233)
Premiums recognized in earned premiums	2,851	2,501
Changes in underlying assumptions	595	(8,368)
Accretion of discount and other	605	1,479
Balance at December 31	3,644	10,736	25,357
Change in reserve for premium deficiency	$ (7,092)	$ (14,621)	$ (61,504)

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Note 8 - Investments in Affiliates

12 Months Ended

Dec. 31, 2011

Investment in Affiliates [Abstract]

Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

Investment in Affiliates

On May 3, 2010, Radian Guaranty sold to Sherman all of its remaining 28.7% equity interest in Sherman for approximately $172 million in cash. As a result of the sale, in the second quarter of 2010, we recorded a pre-tax gain of approximately $34.8 million, net of transaction related expenses of $1.3 million and a pre-tax decrease in accumulated comprehensive income of $29.7 million. In addition, we agreed to terminate certain rights, including our right to a future contingent payment from a previous sale of our equity interest in Sherman.

The following is a rollforward of our investment in Sherman prior to the sale and selected financial information for Sherman:

	Year Ended December 31,
(In thousands)	2010			2009
Sherman
Balance, beginning of period	$	121,424		$	99,656
Share of net income for period	14,590			33,226
Dividends received	(29,498		)	(11,040		)
Other comprehensive loss	(381		)	(418		)
Sale of ownership interest	(106,135		)	—
Balance, end of period	$	—		$	121,424
Portfolio Information:
Sherman
Total assets	n/a			$	1,913,296
Total liabilities	n/a			1,461,076

_____________

n/a—not applicable

(In thousands)	Year Ended December 31, 2009
Summary Income Statement:
Sherman
Income
Revenues from receivable portfolios—net of amortization	$	1,216,742
Other revenues	16,873
Derivative mark-to-market	12,071
Total revenues	1,245,686
Expenses
Operating and servicing expenses	515,125
Provision for loan losses	446,917
Interest	105,537
Other	42,542
Total expenses	1,110,121
Net income	$	135,565

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Note 5 - Fair Value of Financial Instruments Fair Value Assets Liabilities by Hierarchy Level (Details) (USD $)	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Fair Value by Hierarchy Level [Line Items]
VIE Other Assets	$ 105,903,000		$ 112,426,000
Fair Value by Hierarchy Level Assets and Liabilities
Total Level III Assets	4.90%
Total Level III Liabilities	100.00%
Derivative Assets	17,212,000		26,212,000
Derivative liabilities	126,006,000		723,579,000		238,697,000
VIE debt	228,240,000		520,114,000		296,080,000
Fixed-maturities held to maturity	2,748,000		11,416,000
NIMS VIEs [Member]
Fair Value by Hierarchy Level Assets and Liabilities
Derivative Assets	1,600,000		10,900,000
VIE debt	9,400,000		141,000,000
Consolidated Financial Guaranty Insurance Contracts [Member]
Fair Value by Hierarchy Level Assets and Liabilities
Derivative Assets	0		0
Derivative liabilities	19,500,000		19,200,000
VIE debt	218,800,000		379,100,000
Number Of Consolidated Other Financial Guaranty Transactions	2
Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	5,719,900,000	[1]	6,556,900,000	[2]
Derivative Assets	17,200,000		26,200,000
Other Assets	104,000,000	[3]	109,700,000	[3]
Total Assets at Fair Value	5,841,100,000		6,692,800,000
Derivative liabilities	126,000,000		723,600,000
VIE debt	228,200,000	[4]	520,100,000	[5]
Total Liabilities at Fair Value	354,200,000		1,243,700,000
Fair Value, Measurements, Recurring | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value by Hierarchy Level Assets and Liabilities
Fixed-maturities held to maturity	2,600,000		10,800,000
Short Term Investments (Carried at Cost) Fair Value Disclosure	0		1,600,000
Other invested assets fair value disclosure	61,000,000		59,600,000
US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	1,110,500,000		1,806,400,000
State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	1,047,500,000		1,182,900,000
Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	723,200,000		310,900,000
Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	700,500,000		1,060,400,000
RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	930,200,000		966,000,000
CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	225,800,000		196,600,000
CDO | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	5,500,000		2,400,000
Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	99,900,000		134,400,000
Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	102,900,000		83,500,000
Hybrid securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	346,300,000		318,900,000
Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	269,200,000	[6]	339,900,000	[6]
Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	158,400,000	[7]	154,600,000	[8]
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	1,226,100,000	[1]	1,554,300,000	[2]
Derivative Assets	0		0
Other Assets	0	[3]	0	[3]
Total Assets at Fair Value	1,226,100,000		1,554,300,000
Derivative liabilities	0		0
VIE debt	0	[4]	0	[5]
Total Liabilities at Fair Value	0		0
Fair Value, Inputs, Level 1 | US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	386,900,000		1,075,000,000
Fair Value, Inputs, Level 1 | State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	723,200,000		310,900,000
Fair Value, Inputs, Level 1 | Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | CDO | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | Hybrid securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 1 | Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	116,000,000	[6]	168,400,000	[6]
Fair Value, Inputs, Level 1 | Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0	[7]	0	[8]
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	4,329,600,000	[1]	4,890,700,000	[2]
Derivative Assets	200,000		0
Other Assets	0	[3]	0	[3]
Total Assets at Fair Value	4,329,800,000		4,890,700,000
Derivative liabilities	0		0
VIE debt	0	[4]	0	[5]
Total Liabilities at Fair Value	0		0
Fair Value, Inputs, Level 2 | US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	723,600,000		731,400,000
Fair Value, Inputs, Level 2 | State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	985,000,000		1,159,700,000
Fair Value, Inputs, Level 2 | Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 2 | Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	700,500,000		1,060,400,000
Fair Value, Inputs, Level 2 | RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	884,700,000		913,500,000
Fair Value, Inputs, Level 2 | CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	190,400,000		173,600,000
Fair Value, Inputs, Level 2 | CDO | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 2 | Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	97,000,000		131,100,000
Fair Value, Inputs, Level 2 | Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	102,900,000		83,500,000
Fair Value, Inputs, Level 2 | Hybrid securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	341,500,000		318,900,000
Fair Value, Inputs, Level 2 | Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	152,400,000	[6]	168,600,000	[6]
Fair Value, Inputs, Level 2 | Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	151,600,000	[7]	150,000,000	[8]
Fair Value, Inputs, Level 2 | Committed Preferred Securities CPS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	150,000,000
Fair Value, Inputs, Level 2 | Short Term CDs | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	1,600,000
Fair Value, Inputs, Level 2 | Lottery Annuities
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value			2,600,000
Fair Value, Inputs, Level 3
Fair Value by Hierarchy Level Assets and Liabilities
Number Of Consolidated Other Financial Guaranty Transactions	2		2
Fair Value, Inputs, Level 3 | Consolidated Financial Guaranty Insurance Contracts [Member]
Fair Value by Hierarchy Level [Line Items]
VIE Other Assets	104,000,000
Fair Value by Hierarchy Level Assets and Liabilities
VIE debt	103,700,000
Number Of Consolidated Other Financial Guaranty Transactions	2
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	164,200,000	[1]	111,900,000	[2]
Derivative Assets	17,000,000		26,200,000
Other Assets	104,000,000	[3]	109,700,000	[3]
Total Assets at Fair Value	285,200,000		247,800,000
Derivative liabilities	228,200,000		723,600,000
VIE debt	126,000,000		520,100,000
Total Liabilities at Fair Value	354,200,000		1,243,700,000
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | NIMS VIEs [Member]
Fair Value by Hierarchy Level Assets and Liabilities
VIE debt	9,400,000		141,000,000
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Consolidated Financial Guaranty Insurance Contracts [Member]
Fair Value by Hierarchy Level Assets and Liabilities
VIE debt	218,800,000		379,100,000
Fair Value, Inputs, Level 3 | US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 3 | State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	62,500,000		23,200,000
Fair Value, Inputs, Level 3 | Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 3 | Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 3 | RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	45,500,000		52,500,000
Fair Value, Inputs, Level 3 | CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	35,400,000		23,000,000
Fair Value, Inputs, Level 3 | CDO | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	5,500,000		2,400,000
Fair Value, Inputs, Level 3 | Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	2,900,000		3,300,000
Fair Value, Inputs, Level 3 | Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	0		0
Fair Value, Inputs, Level 3 | Hybrid securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	4,800,000		0
Fair Value, Inputs, Level 3 | Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	800,000	[6]	2,900,000	[6]
Fair Value, Inputs, Level 3 | Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	6,800,000	[7]	4,600,000	[8]
Fair Value, Inputs, Level 3 | Lottery Annuities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	1,600,000
Fair Value, Inputs, Level 3 | Consolidated Committed Preferred Custodial Trust Securities [Member] | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Investments at Fair Value	$ 5,200,000		$ 2,000,000
Fair Value, Inputs, Level 3 | Assets, Total [Member] | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level Assets and Liabilities
Total Level III Assets	4.90%		3.70%
Total Level III Liabilities	100.00%		100.00%

[1] Does not include fixed-maturities held to maturity ($2.6 million) and other invested assets ($61.0 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

[2] Does not include fixed-maturities held to maturity ($10.8 million), certain short-term investments ($1.6 million), primarily invested in CDs and time deposits, and other invested assets ($59.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

[3] Comprising manufactured housing loan collateral related to two consolidated financial guaranty VIEs.

[4] Comprising consolidated debt related to NIMS VIEs ($9.4 million) and amounts related to financial guaranty VIEs ($218.8 million).

[5] Comprising consolidated debt related to NIMS VIEs ($141.0 million) and amounts related to financial guaranty VIEs ($379.1 million) that required consolidation as of January 1, 2010, under the accounting standard update regarding improvements to financial reporting by enterprises involved with VIEs.

[6] Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common stocks invested across numerous companies and industries included within Levels II and III.

[7] Comprising short-term commercial paper within CPS trusts ($150.0 million) and short-term CDs ($1.6 million) included within Level II, and lottery annuities ($1.6 million) and TruPs held by consolidated VIEs ($5.2 million) included within Level III.

[8] Comprising short-term commercial paper within CPS trusts included within Level II, and lottery annuities ($2.6 million) and TruPs held by consolidated VIEs ($2.0 million) included within Level III.

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Note 16 - Share-Based and Other Compensation Plans (Officer LTI Plan - Cash Settled) (Details) (Officer LTI Plan Cash Based [Member], Cash Settled [Member], USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended
	Feb. 28, 2011	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash used to settle awards	8.4
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payout range amount as percentage of target award	147.00%	0.00%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payout range amount as percentage of target award	172.00%	200.00%

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Note 6 - VIEs Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

VIEs [Abstract]

Variable Interest Entities [Text Block]

VIEs

The following relates to our consolidated and unconsolidated VIEs.

Financial Guaranty Insurance Contracts

Our interests in VIEs for which we are not the primary beneficiary may be accounted for as insurance, reinsurance or credit derivatives. For insurance and reinsurance contracts, we record reserves for losses and LAE, and for derivative interests, we record cumulative changes in fair value as a corresponding derivative asset or liability. Our primary involvement with these VIEs relates to transactions in which we provide a financial guaranty to one or more classes of beneficial interest holders in the VIE. The underlying collateral in the VIEs includes residential and commercial mortgages, manufactured housing loans, consumer receivables and other financial assets sold to a VIE and repackaged into securities or similar beneficial interests.

In continually assessing our involvement with VIEs, we consider certain events such as the VIE's failure to meet certain contractual conditions, such as performance tests and triggers, servicer termination events and events of default, that should they occur, may provide us with additional control rights over the VIE. The occurrence of these events would cause us to reassess our initial determination of whether we are the primary beneficiary of a VIE. In addition, changes to its governance structure that would allow us to direct the activities of a VIE or our acquisition of additional financial interests in the VIE would also cause us to reassess our determination of whether we are the primary beneficiary of a VIE. Since many of our financial guaranty contracts provide us with substantial control rights over the activities of VIEs upon the occurrence of default or other performance triggers described above, additional VIEs may be consolidated by us if these events occur.

We consolidate the assets and liabilities associated with one CDO of ABS transaction. Due to provisions in our financial guaranty contracts that allow us to direct the collateral manager to sell the underlying assets of this transaction, we concluded that we have the power to direct the activities that most significantly impact the economic performance of this VIE. In addition, as the guarantor of certain classes of debt issued by this VIE, we have the obligation to absorb losses that are significant to this VIE. The consolidated assets of this CDO of ABS VIE are accounted for as trading securities and represent assets to be used to settle the obligation of this VIE. While the assets of this VIE may only be used to settle the obligations of the VIE, due to our guarantee, the creditors have recourse to our general credit for this consolidated VIE debt.

We also consolidate the assets and liabilities associated with two other financial guaranty transactions. In these transactions, we provide guarantees for VIEs that own manufactured housing loans. Prior to their consolidation, these transactions had been accounted for as insurance contracts. Due to the contractual provisions that allow us to replace and appoint the servicer who manages the collateral underlying the assets of the transactions, we concluded that we have the power to direct the activities of these VIEs. In addition, as the guarantor of certain classes of debt issued by these VIEs, we have the obligation to absorb losses that could be significant to these VIEs. The assets of these VIEs may only be used to settle the obligations of the VIEs, while due to the nature of our guarantees, creditors have recourse to our general credit as it relates to the VIE debt. However, due to the seniority of the bonds we insure in these transactions, we do not expect to incur a loss from our involvement with these two VIEs; as such, we did not have a net liability recorded for these transactions as of December 31, 2011.

The following tables provide a summary of our maximum exposure to losses, and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated and unconsolidated financial guaranty insurance contracts and credit derivative VIEs:

	Consolidated				Unconsolidated
	December 31,				December 31,
(In millions)	2011		2010		2011		2010
Balance Sheet:
Trading securities	$	94.5	$	83.2	$	—	$	—
Derivative assets	—		—		4.1		6.0
Premiums receivable	—		—		3.6		5.2
Other assets	105.9		112.4		—		—
Unearned premiums	—		—		3.8		6.0
Reserve for losses and LAE	—		—		7.9		15.0
Derivative liabilities	19.5		19.2		79.5		585.9
VIE debt—at fair value	218.8		379.1		—		—
Accounts payable and accrued expenses	0.5		0.8		—		—
Maximum exposure (1)	580.0		584.6		6,126.3		6,874.2

_______________

(1) The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which include an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

	Consolidated							Unconsolidated
	Year Ended December 31,							Year Ended December 31,
(In millions)	2011			2010			2009	2011			2010			2009
Statement of Operations:
Premiums earned	$	—		$	—		—	$	2.6		$	2.8		$	3.5
Net investment income	8.7			10.9			—	—			—			—
Net gains on investments	14.7			—			—	—			—			—
Change in fair value of derivative        instruments—(loss) gain	(10.7		)	(14.5		)	—	511.2			(478.3		)	—
Net gain (loss) on other financial        instruments	155.5			(143.5		)	—	—			—			—
Provision for losses—increase        (decrease)	—			—			—	(6.0		)	6.5			(4.4		)
Other operating expenses	3.1			3.5			—	—			—			—
Net Cash Inflow (Outflow)	0.8			0.9			—	7.6			(32.1		)	(2.8		)

NIMS VIEs

We consolidate all of the assets and liabilities associated with NIMS VIEs, due to provisions in our contracts that allow us to purchase assets of these VIEs and thus direct the activities that most significantly impact the economic performance of each VIE. As the guarantor of either all or a significant portion of the debt issued by each NIMS VIE, we have the obligation to absorb losses that are significant to the VIEs. As a result, we have also concluded that we are the primary beneficiary of these VIEs. The consolidated NIMS assets are accounted for as derivatives and represent assets to be used to settle the obligation of the VIEs. We elected the fair value option as it relates to the NIMS VIE debt, and therefore, the consolidated NIMS VIE debt is recorded at fair value. Our VIE debt includes amounts for which third parties do not have recourse to us.

In total, our net cash outflow related to NIMS during 2011 has been primarily as a result of claim payments. All but two of our existing NIMS transactions mature within one year. The following tables provide a summary of our maximum exposure to losses, and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated NIMS VIEs:

	December 31,
(In millions)	2011		2010
Balance Sheet:
Derivative assets	$	1.6	$	10.9
VIE debt—at fair value	9.4		141.0
Maximum exposure (1)	18.5		135.8

_______________

(1) The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which includes an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

	Year Ended December 31,
(In millions)	2011			2010			2009
Statement of Operations:
Net premiums earned	$	—		$	—		$	0.8
Net investment income	0.5			0.4			—
Change in fair value of derivative instruments—loss	(1.6		)	(0.9		)	(6.2		)
Net gain (loss) on other financial instruments	4.4			(39.6		)	(99.5		)
Net Cash Outflow	(119.1		)	(187.1		)	(68.1		)

Put Options on CPS

In September 2003, Radian Asset Assurance entered into a contingent capital transaction pursuant to which three custodial trusts issued an aggregate of $150 million in CPS ($50 million by each custodial trust) to various holders. Radian Group and its subsidiaries have purchased by tender offer and privately negotiated transactions all of the face amount of the CPS issued by the custodial trusts. Our continued involvement with these VIEs has included the payment of a put premium representing the spread between the investment income of the custodial trusts and amounts payable to CPS holders and other fees and expenses payable by the custodial trusts, which has typically not been material. We eliminate the premium associated with the purchased CPS.

As of December 31, 2009, we consolidated the assets and liabilities of two of the CPS trusts with which we are involved as we had acquired a majority of the securities issued by these two trusts at that date. We purchased substantially all of the securities issued by the remaining CPS trust in 2010, and we consolidated the assets and liabilities of that trust during 2010. We recognized a loss of $13.9 million within net (losses) gains on other financial instruments upon consolidation, based on the difference between the consideration paid for the CPS trust securities and the net amount of the trust's identifiable assets and liabilities recognized and measured at fair value at the date of consolidation.

Based on our involvement in these trusts, combined with the put options Radian Asset Assurance holds on these trusts (which together are considered in the determination of the primary beneficiary), we concluded that we are the party that directs the activities that most significantly influences the economic performance of these VIEs and has the right to receive benefits that would be significant to these VIEs. Therefore, given that we have a variable interest in each of these VIEs, we concluded that we are the primary beneficiary. As such, the assets and liabilities of these trusts were consolidated at their respective fair values, net of liabilities to us. The assets of the consolidated trusts are reported in short-term investments. During 2011, our net cash outflow related to our involvement with these VIEs was de minimis.

The following tables provide a summary of our maximum exposure to losses, and the financial impact on our consolidated balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the periods indicated, as it relates to our consolidated and unconsolidated CPS VIEs:

	Consolidated
	December 31,
(In millions)	2011		2010
Balance Sheet:
Short-term investments	$	150.0	$	150.0
Maximum exposure (1)	150.0		150.0

_____________

(1) The maximum exposure is based on our carrying amounts of the investments.

	Consolidated								Unconsolidated
	Year Ended December 31,								Year Ended December 31,
(In millions)	2011			2010			2009		2011		2010			2009
Statement of Operations:
Net investment income	$	0.2		$	—		$	—	$	—	$	—		$	—
Change in fair value of derivative        instruments—gain (loss)	—			0.2			—		—		(6.3		)	(56.2		)
Net loss on other financial        instruments	—			(25.7		)	—		—		—			—
Other operating expenses	0.4			0.4			—		—		—			—
Net Cash Outflow	(0.2		)	(83.4		)	—		—		(0.9		)	(3.7		)

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Note 7 - Investments Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Investments [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Investments

Our held to maturity and available for sale securities within our investment portfolio consisted of the following as of the dates indicated:

	December 31, 2011
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities held to maturity:
Bonds and notes:
State and municipal obligations	$	2,640	$	2,748	$	115	$	7
	$	2,640	$	2,748	$	115	$	7
Fixed-maturities available for sale:
U.S. government and agency securities	$	10,931	$	13,630	$	2,699	$	—
State and municipal obligations	87,083		82,692		485		4,876
Corporate bonds and notes	17,267		16,610		390		1,047
RMBS	1,308		1,360		53		1
CMBS	1,660		1,669		25		16
Other ABS	1,019		1,177		158		—
Other investments	1,489		1,595		106		—
	$	120,757	$	118,733	$	3,916	$	5,940
Equity securities available for sale (1)	$	114,425	$	128,424	$	14,868	$	869
Total debt and equity securities	$	237,822	$	249,905	$	18,899	$	6,816

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($116.0 million fair value at December 31, 2011) and various preferred and common stocks invested across numerous companies and industries ($12.4 million fair value at December 31, 2011).

	December 31, 2010
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities held to maturity:
Bonds and notes:
State and municipal obligations	$	10,773	$	11,416	$	662	$	19
	$	10,773	$	11,416	$	662	$	19
Fixed-maturities available for sale:
U.S. government and agency securities	$	25,120	$	27,742	$	2,622	$	—
State and municipal obligations	269,185		199,187		272		70,270
Corporate bonds and notes	26,748		26,206		334		876
RMBS	11,952		12,538		600		14
CMBS	3,279		3,310		70		39
Other ABS	2,104		2,226		127		5
Other investments	2,407		2,590		183		—
	$	340,795	$	273,799	$	4,208	$	71,204
Equity securities available for sale (1)	$	160,242	$	184,365	$	24,188	$	65
Total debt and equity securities	$	511,810	$	469,580	$	29,058	$	71,288

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($168.4 million fair value at December 31, 2010) and various preferred and common stocks invested across numerous companies and industries ($16.0 million fair value at December 31, 2010).

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:

	December 31,
(In thousands)	2011		2010
Trading securities:
U.S. government and agency securities	$	710,006	$	703,636
State and municipal obligations	964,748		983,680
Corporate bonds and notes	683,864		1,034,206
RMBS	928,887		953,416
CMBS	224,180		193,244
CDO	5,467		2,406
Other ABS	98,729		132,149
Foreign government securities (1)	102,851		83,508
Hybrid securities	346,338		318,940
Equity securities	140,764		155,636
Other investments	5,225		2,000
Total	$	4,211,059	$	4,562,821

______________________

(1) As of December 31, 2011, nearly all of our foreign government securities were rated A or higher by a Nationally Recognized Statistical Rating Organization ("NRSRO"). As of December 31, 2011, our trading portfolio included no securities of five Eurozone countries (Portugal, Ireland, Italy, Greece and Spain, collectively, the "Stressed Eurozone Countries"), whose sovereign obligations have been under stress due to economic uncertainty, potential restructuring and ratings downgrades, or securities of any other countries under similar stress. As of December 31, 2010, our trading portfolio exposure to the Stressed Eurozone Countries consisted of $15.5 million of Italian securities. Our largest concentrations of foreign government securities as of December 31, 2011, were Germany ($42.6 million fair value) and Japan ($28.0 million fair value).

For trading securities that are still held at December 31, 2011 and 2010, we had net gains during 2011 and 2010 associated with those securities in the amount of $112.1 million and $27.0 million, respectively.

Net investment income consisted of:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Investment income:
Fixed-maturities	$	155,183		$	174,204		$	208,755
Equity securities	11,559			7,623			6,973
Short-term investments	611			1,576			4,289
Other	4,017			2,756			1,466
Gross investment income	$	171,370		$	186,159		$	221,483
Investment expenses	(7,850		)	(7,399		)	(7,293		)
Net investment income	$	163,520		$	178,760		$	214,190

Net realized and unrealized gains (losses) on investments consisted of:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Net realized gains (losses):
Fixed-maturities held to maturity	$	491		$	295		$	133
Fixed-maturities available for sale	(52,473		)	(7,661		)	91,577
Equities available for sale	6,228			2,001			764
Trading securities	121,393			66,351			107,479
Short-term investments	(1		)	(67		)	14
Other invested assets	—			388			822
Net realized gains (losses) on investments	75,638			61,307			200,789
Unrealized gains on trading securities	126,539			78,637			56,352
Total gains on investments	$	202,177		$	139,944		$	257,141

 At December 31, 2010, our gross unrealized losses related to state and municipal obligations primarily represented our interests in certain bonds held in our available for sale portfolio that were issued as part of securitizations collateralized by the Master Settlement Agreement ("MSA") among certain domestic tobacco manufacturers and 46 states and certain territories. During the second quarter of 2011, we sold all of our interests in these bonds realizing a loss on the sale of $53.7 million on proceeds received of $94.3 million. In December 2010, Moody's took certain ratings actions on a category of tobacco settlement bonds, including placing 67 classes in 19 transactions under review for possible downgrade due primarily to a decline in the most recent annual MSA payment to the trusts. Our decision to sell these bonds was in response to additional negative developments during the second quarter of 2011. Specifically, the MSA payments in April 2011 were the lowest in five years, primarily due to a decline in cigarette consumption that exceeded historical and expected levels, which caused several states to announce, in May 2011, that they expected to draw on liquidity reserves later in 2011 to cover shortfalls in cash flows on these bonds. Although we expected the present value of cash flows ultimately to be collected from each security to be sufficient to recover our amortized cost basis, we concluded that the risk profile of these bonds no longer suited our current portfolio objectives, and as a result, changed our prior intent to hold these bonds until maturity, and instead disposed of these securities during the second quarter of 2011.

For the years ended December 31, 2011, 2010 and 2009, we did not sell or transfer any fixed-maturity investments classified as held to maturity. For the years ended December 31, 2011 and 2009, we did not transfer any securities from the available for sale or trading categories. During 2010, we recorded $3.1 million in gains on securities transferred from the available for sale category into the trading category.

The sources of our proceeds and related investment gains (losses) on our available for sale securities are as follows:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Fixed-maturities available for sale:
Proceeds received from redemptions	$	32,214		$	50,846		$	199,551
Proceeds received from sales	136,217			1,218,460			2,463,626
Gross investment gains from sales and redemptions	1,577			23,363			94,974
Gross investment losses from sales and redemptions	(54,050		)	(31,024		)	(3,397		)
Equities available for sale:
Proceeds received from sales	52,014			15,033			33,807
Gross investment gains from sales	6,238			2,006			1,077
Gross investment losses from sales	(10		)	(5		)	(313		)

The change in unrealized gains (losses) recorded in accumulated other comprehensive loss consisted of the following:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Fixed-maturities:
Unrealized holding gains arising during the period, net of tax	$	11,328		$	23,806		$	151,001
Less reclassification adjustment for net (losses) gains included in net income (loss), net of tax	(34,697		)	(4,980		)	59,392
Net unrealized gains on investments, net of tax	$	46,025		$	28,786		$	91,609
Equities:
Unrealized holding (losses) gains arising during the period, net of tax	$	(3,928	)	$	15,080		$	27,335
Less reclassification adjustment for net gains (losses) included in net income (loss), net of tax	2,769			1,242			(5,395		)
Net unrealized (losses) gains on investments, net of tax	$	(6,697	)	$	13,838		$	32,730

The following tables show the gross unrealized losses and fair value of our available for sale and held to maturity investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:

December 31, 2011: ($ in thousands)Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	1	$	525	$	17	9	$	72,653	$	4,866	10	$	73,178	$	4,883
Corporate bonds and notes	6	2,457		97		18	8,902		950		24	11,359		1,047
RMBS	2	354		1		—	—		—		2	354		1
CMBS	—	—		—		1	527		16		1	527		16
Equity securities	1	9,284		869		—	—		—		1	9,284		869
Total	10	$	12,620	$	984	28	$	82,082	$	5,832	38	$	94,702	$	6,816

December 31, 2010: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	6	$	3,507	$	110	26	$	189,194	$	70,179	32	$	192,701	$	70,289
Corporate bonds and notes	31	16,364		852		2	604		24		33	16,968		876
RMBS	1	1,436		14		—	—		—		1	1,436		14
CMBS	3	1,885		39		—	—		—		3	1,885		39
Other ABS	2	802		5		—	—		—		2	802		5
Equity securities	2	205		65		—	—		—		2	205		65
Total	45	$	24,199	$	1,085	28	$	189,798	$	70,203	73	$	213,997	$	71,288

During 2011 and 2010, there were no credit losses recognized in earnings. There were $868 thousand in credit losses recognized in earnings for which a portion of an OTTI was recognized in other comprehensive income ("OCI") from April 1, 2009 (the inception date of the new accounting standard regarding OTTI) through December 31, 2009.

At December 31, 2011 and 2010, we did not have the intent to sell any debt securities in an unrealized loss position, and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis.

Impairments due to credit deterioration that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security are considered other-than-temporary. Other declines in fair value (for example, due to interest rate changes, sector credit rating changes or company-specific rating changes) that result in a conclusion that the present value of cash flows expected to be collected will not be sufficient to recover the amortized cost basis of the security, also may serve as a basis to conclude that an OTTI has occurred. To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.

We have securities in an unrealized loss position that we did not consider to be other-than-temporarily impaired as of December 31, 2011. For all investment categories, the unrealized losses of 12 months or greater duration as of December 31, 2011, were generally caused by interest rate or credit spread movements since purchase date. As of December 31, 2011, we expected the present value of cash flows to be collected from these securities to be sufficient to recover the amortized cost basis of these securities. As of December 31, 2011, we did not intend to sell these investments, nor did we believe that it was more likely than not that we will be required to sell these investments before recovery of our amortized cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at December 31, 2011.

The contractual maturities of fixed-maturity investments are as follows:

	December 31, 2011
	Held to Maturity				Available for Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less (1)	$	1,912	$	2,022	$	1,944	$	1,834
Due after one year through five years (1)	424		428		16,594		17,135
Due after five years through ten years (1)	—		—		5,678		5,326
Due after ten years (1)	304		298		92,554		90,232
RMBS (2)	—		—		1,308		1,360
CMBS (2)	—		—		1,660		1,669
Other ABS (2)	—		—		1,019		1,177
Total	$	2,640	$	2,748	$	120,757	$	118,733

______________________

(1) Actual maturities may differ as a result of calls before scheduled maturity.

(2) RMBS, CMBS and Other ABS are shown separately, as they are not due at a single maturity date.

At December 31, 2011, investments in any person and its affiliates that exceeded 10% of total stockholders' equity were as follows (in thousands):

(In thousands)	Year Ended December 31, 2011
Name	Trading Securities		Short-Term Investments		Total
BlackRock Liquidity Funds T-Fund Money Market	$	—	$	173,378	$	173,378
Fidelity Institutional Treasury Only Portfolio	—		167,631		167,631
Federated Treasury Obligations Fund	—		139,000		139,000
State of Illinois	129,672		—		129,672
Invesco-AIM Advisors STIT Treasury PTF Money Market	—		129,000		129,000
Total	$	129,672	$	609,009	$	738,681

Securities on deposit with various state insurance commissioners amounted to $21.1 million and $17.0 million at December 31, 2011 and 2010, respectively. We also had $116.4 million and $140.0 million (book value) of securities pledged as collateral in accordance with various reinsurance agreements at December 31, 2011 and 2010, respectively

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Note 9 - Reinsurance

12 Months Ended

Dec. 31, 2011

Reinsurance Disclosures [Abstract]

Reinsurance [Text Block]

Reinsurance

In our mortgage insurance business, we use reinsurance as a risk management tool to reduce our net risk in force, in order to strengthen our regulatory risk-to-capital ratio, and to comply with the insurance regulations of states that require us to limit our coverage percentage of any single risk to 25%. We have primarily used reinsurance in our financial guaranty business to the extent necessary in specific transactions to comply with applicable single risk limits. Although the use of reinsurance does not discharge an insurer from its primary liability to the insured, the reinsuring company assumes the related liability under these arrangements. Included in other assets are unearned premiums on risk that we have ceded of $0.8 million and $1.0 million at December 31, 2011 and 2010, respectively.

The effect of reinsurance on net premiums written and earned is as follows:

	Year Ended December 31,
(In thousands)	2011			2010			2009
Net premiums written-insurance:
Direct	$	755,758		$	788,321		$	790,052
Assumed	(11,162		)	(6,585		)	(207,074		)	(1)
Ceded	(37,349		)	(89,855		)	(139,130		)
Net premiums written-insurance	$	707,247		$	691,881		$	443,848
Net premiums earned-insurance:
Direct	$	762,428		$	891,167		$	919,778
Assumed	32,337			29,063			45,749
Ceded	(38,740		)	(94,497		)	(139,626		)
Net premiums earned-insurance	$	756,025		$	825,733		$	825,901

_____________

(1) This amount includes a $185.6 million reduction related to the commutation of $9.8 billion in net par outstanding.

We and other companies in the mortgage insurance industry have participated in reinsurance arrangements with mortgage lenders commonly referred to as “captive reinsurance arrangements.” Under captive reinsurance arrangements, a mortgage lender typically establishes a reinsurance company that assumes part of the risk associated with the portfolio of that lender’s mortgages insured by us on a flow basis (as compared to mortgages insured in structured transactions, which typically are not eligible for captive reinsurance arrangements). In return for the reinsurance company’s assumption of a portion of the risk, we cede a portion of the mortgage insurance premiums paid to us to the reinsurance company. The captive reinsurers are typically required to maintain minimum capitalization equal to 10% of the risk assumed. We have concluded that all of our captive reinsurance arrangements transfer risk to the captive reinsurer. We have also offered, on a limited basis, “quota share” captive reinsurance agreements under which the captive reinsurance company assumes a pro rata share of all losses in return for a pro rata share of the premiums collected.

In most cases, the risk assumed by the reinsurance company is an excess layer of aggregate losses that would be penetrated only in a situation of adverse loss development. However, during the recent housing and related credit market downturn in which losses have increased significantly, many captive reinsurance arrangements have attached, requiring our captive reinsurers to make payments to us. In all cases, the captive reinsurer establishes a trust to secure our potential cash recoveries. We generally are the sole beneficiary under these trusts, and therefore have the ability to initiate disbursements under the trusts in accordance with the terms of our captive reinsurance agreements.

We have protected against losses in excess of our expectations on some of the risk associated with non-prime and riskier products by reinsuring this business through Smart Home reinsurance transactions. In 2004, we developed Smart Home as a way to effectively transfer risk from our portfolio to investors in the capital markets. Smart Home mitigates our risk against losses, concentrated positions and riskier products. Since 2004, we have completed four Smart Home reinsurance transactions. In 2011, we exercised our option to terminate two of these transactions, with RIF of approximately $41 million. The two remaining transactions will mature within the next 18 months (one in November 2012 and one in June 2013), and the ultimate recoverable amounts from these transactions will be dependent upon the amount and timing of paid losses in these transactions through their respective maturity dates, or the dates on which they are otherwise terminated. Approximately 2.7% and 3.2% of our primary mortgage risk in force was ceded through Smart Home reinsurance transactions at December 31, 2011 and 2010, respectively. In these transactions, we reinsure the middle layer risk positions, while retaining a significant portion of the total risk comprising the first-loss and most remote risk positions.

All of our existing captive reinsurance arrangements are operating on a run-off basis, meaning that no new business is being placed in these captives. In 2010, we terminated many of our remaining captive reinsurance arrangements on a “cut-off” basis, meaning that the terminated captive arrangements were dissolved and all outstanding liabilities to us were settled. In the fourth quarter of 2010, we terminated two large captive reinsurance arrangements representing $6.0 billion of risk in force. In connection with these terminations, we received $321 million of cash and investments from the captive trust account, which are accounted for as claims recoveries. Since inception, we have received total cash reinsurance recoveries (including recoveries from terminations) from Smart Home and captive reinsurance arrangements of approximately $673.2 million. In some instances, we anticipate that the ultimate recoveries from the captive reinsurers will be greater than the assets currently held by the segregated trusts established for each captive reinsurer. Recorded recoverables, however, are limited to the current trust balances. We expect that most of the actual cash recoveries from those captives that have not yet been terminated will be received over the next few years.

The reinsurance recoverable amounts on paid losses are considered to be financing receivables in accordance with the accounting standard regarding accounts receivable, which includes disclosure requirements regarding the credit quality of financing receivables and the allowance for credit losses. We do not record an allowance for credit losses on reinsurance recoverables, as the reinsurance recoverable amounts for both paid and unpaid losses are fully collateralized in the segregated trusts. Therefore, credit exposure is limited to the credit quality of investments held by the trust. Trust assets related to our captive and Smart Home arrangements are required to be invested in investment-grade securities. As of December 31, 2011, the trust assets for these trust accounts consist primarily of cash equivalents, money market investments and investment-grade securities.

The following tables present information related to our captive and Smart Home transactions as of the dates indicated:

	Year Ended December 31,
(In millions)	2011		2010
Risk in force ceded under captive reinsurance arrangements	$	340.8	$	420.6
Ceded losses recoverable related to captives	90.1		151.7
Ceded losses recoverable related to Smart Home	67.9		93.2

Approximately 25.6% of our total ceded losses recoverable at December 31, 2011, were related to two captive reinsurers.

	Year Ended December 31,
(In millions)	2011		2010		2009
Ceded premiums written related to captives	$	28.6	$	80.1	$	128.3
Ceded premiums earned related to captives	28.8		83.4		129.8
Ceded premiums written related to Smart Home	8.8		9.8		10.9
Ceded premiums earned related to Smart Home	8.8		9.8		10.9
Ceded recoveries, excluding amounts received upon terminations of captive reinsurance transactions	84.5		134.7		31.3

Historically, Radian Asset Assurance has ceded only an immaterial amount of its directly insured portfolio. However, in January 2012, Radian Asset Assurance ceded approximately $1.8 billion of its direct public finance net par outstanding and entered into an administrative services agreement with such ceding company for surveillance, risk management, claims administration and claims payment services in connection with the policies ceded. See Note 1 and 21 for additional information regarding this transaction.

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Note 6 - VIEs NIMS VIEs (Details) (USD $)	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Balance Sheet Related Disclosures
Derivative Assets	$ 17,212,000		$ 26,212,000
VIE debt	228,240,000		520,114,000		296,080,000
Statement of Operations
Premiums earned	756,025,000		825,733,000		825,901,000
Net investment income	163,520,000		178,760,000		214,190,000
Change in fair value of derivative instruments, gain (loss)	628,395,000		(558,712,000)		99,958,000
Net gains (losses) on other financial instruments	193,329,000		(211,681,000)		(88,569,000)
NIMS VIEs
Balance Sheet Related Disclosures
Derivative Assets	1,600,000		10,900,000
VIE debt	9,400,000		141,000,000
Maximum exposure (1)	18,500,000	[1]	135,800,000	[1]
Statement of Operations
Premiums earned					800,000
Net investment income	500,000		400,000
Change in fair value of derivative instruments, gain (loss)	(1,600,000)		(900,000)		(6,200,000)
Net gains (losses) on other financial instruments	4,400,000		(39,600,000)		(99,500,000)
NIMS VIEs Additional Disclosures
Net cash inflow (outflow) for VIEs	$ (119,100,000)		$ (187,100,000)		$ (68,100,000)
Number Of NIMS Bonds Purchased
Average Remaining Maturity in Years of Existing NIMS Transactions
Years Left To Maturity Of A Majority Of Our NIMS Transactions	1
Number of NIMS Bonds Not Maturing Within One Year	2

[1] The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which includes an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

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Note 18 - Commitments and Contingencies Legal Proceedings (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended
	Jun. 26, 2008	Dec. 31, 2011	Aug. 13, 2010	Dec. 31, 2011 Insurance Claims [Member]	Aug. 01, 2011 Insurance Claims [Member]
Settled Law Suits [Abstract]
Number Of Disputed Pool Policies Covering Second Lien Mortgages Involved In A Lawsuit	3
Number Of Defendant Financial Guaranty Companies Involved In The Lawsuit That Are Subordinated To Our Position	3
Estimated Litigation Liability	$ 77
Litigation Settlement, Gross		$ 44
Pending Law Suits [Abstract]
Number Of RMBS Bulk Primary Mortgage Insurance Policies Involved In Pending or Threatened Litigation			27
Number Of Loans Included In The RMBS Bulk Primary Mortgage Insurance Policies Involved In Litigation			271
Number Of Home Mortgage Loans Involved In Pending Litigation					140
Loss Reserve Information [Abstract]
Under Our Master Insurance Policy Any Suit Or Action Arising From Any Right Of The Insured Under The Policy Must Be Commenced Within This Number Of Years After Such Right First Arose		2		2
Under Our Master Insurance Policy Any Suit Or Action Arising From Any Right Of Certain Other Policies Must Be Commenced Within This Number Of Years After Such Right First Arose		3		3

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Note 12 - Financial Guaranty Insurance Contracts Financial Guaranty Claim Liabilities by Surveillance Categories (Details) (USD $)	12 Months Ended
	Dec. 31, 2011
Financial Guaranty Claim Liabilities by Surveillance Categories
Number of policies	318
Remaining weighted-average contract period (in years)	20
Insured contractual payments outstanding:
Principal	$ 1,868,000,000
Interest	1,020,400,000
Total insured contractual payments outstanding	2,888,400,000
Gross claim liability	234,500,000
Reductions of gross claim liability:
Gross potential recoveries	143,900,000
Discount, Net	16,400,000
Net claim liability	74,200,000
Unearned premium revenue	33,200,000
Claim liability reported in the balance sheet	60,500,000
Reinsurance recoverable	0
Performing
Financial Guaranty Claim Liabilities by Surveillance Categories
Number of policies	16
Remaining weighted-average contract period (in years)	23
Insured contractual payments outstanding:
Principal	58,100,000
Interest	12,600,000
Total insured contractual payments outstanding	70,700,000
Gross claim liability	400,000
Reductions of gross claim liability:
Gross potential recoveries	0
Discount, Net	100,000
Net claim liability	300,000
Unearned premium revenue	200,000
Claim liability reported in the balance sheet	200,000
Reinsurance recoverable	0
Special Mention
Financial Guaranty Claim Liabilities by Surveillance Categories
Number of policies	135
Remaining weighted-average contract period (in years)	18
Insured contractual payments outstanding:
Principal	1,080,300,000
Interest	624,600,000
Total insured contractual payments outstanding	1,704,900,000
Gross claim liability	15,700,000
Reductions of gross claim liability:
Gross potential recoveries	700,000
Discount, Net	3,300,000
Net claim liability	11,700,000
Unearned premium revenue	25,300,000
Claim liability reported in the balance sheet	3,600,000
Reinsurance recoverable	0
Intensified Surveillance
Financial Guaranty Claim Liabilities by Surveillance Categories
Number of policies	61
Remaining weighted-average contract period (in years)	21
Insured contractual payments outstanding:
Principal	370,800,000
Interest	198,800,000
Total insured contractual payments outstanding	569,600,000
Gross claim liability	114,500,000
Reductions of gross claim liability:
Gross potential recoveries	60,000,000
Discount, Net	10,800,000
Net claim liability	43,700,000
Unearned premium revenue	7,700,000
Claim liability reported in the balance sheet	38,200,000
Reinsurance recoverable	0
Case Reserve
Financial Guaranty Claim Liabilities by Surveillance Categories
Number of policies	106
Remaining weighted-average contract period (in years)	25
Insured contractual payments outstanding:
Principal	358,800,000
Interest	184,400,000
Total insured contractual payments outstanding	543,200,000
Gross claim liability	103,900,000
Reductions of gross claim liability:
Gross potential recoveries	83,200,000
Discount, Net	2,200,000
Net claim liability	18,500,000
Unearned premium revenue	0
Claim liability reported in the balance sheet	18,500,000
Reinsurance recoverable	$ 0

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Note 7 - Investments Total Debt and Equity Securities (Details) (USD $)	Dec. 31, 2011		Dec. 31, 2010
Fixed maturities held to maturity
Total held to maturity amortized cost	$ 2,640,000		$ 10,773,000
Fair Value	2,748,000		11,416,000
Fixed maturities available for sale securities
Amortized cost	120,757,000		340,795,000
Equity securities available for sale
Amortized cost	114,425,000		160,242,000
Fair value	128,424,000		184,365,000
Total debt and equity securities
Amortized Cost	237,822,000		511,810,000
Fair Value	249,905,000		469,580,000
Gross Unrealized Gains	18,899,000		29,058,000
Gross Unrealized Losses	6,816,000		71,288,000
Debt Securities
Fixed maturities held to maturity
Total held to maturity amortized cost	2,640,000		10,773,000
Fair Value	2,748,000		11,416,000
Gross unrealized gains	115,000		662,000
Gross unrealized losses	7,000		19,000
Fixed maturities available for sale securities
Amortized cost	120,757,000		340,795,000
Fair value	118,733,000		273,799,000
Gross unrealized gains	3,916,000		4,208,000
Gross unrealized losses	5,940,000		71,204,000
US government and agency securities
Fixed maturities available for sale securities
Amortized cost	10,931,000		25,120,000
Fair value	13,630,000		27,742,000
Gross unrealized gains	2,699,000		2,622,000
Gross unrealized losses	0		0
State and municipal obligations
Fixed maturities held to maturity
Total held to maturity amortized cost	2,640,000		10,773,000
Fair Value	2,748,000		11,416,000
Gross unrealized gains	115,000		662,000
Gross unrealized losses	7,000		19,000
Fixed maturities available for sale securities
Amortized cost	87,083,000		269,185,000
Fair value	82,692,000		199,187,000
Gross unrealized gains	485,000		272,000
Gross unrealized losses	4,876,000		70,270,000
Corporate bonds and notes
Fixed maturities available for sale securities
Amortized cost	17,267,000		26,748,000
Fair value	16,610,000		26,206,000
Gross unrealized gains	390,000		334,000
Gross unrealized losses	1,047,000		876,000
RMBS
Fixed maturities available for sale securities
Amortized cost	1,308,000		11,952,000
Fair value	1,360,000		12,538,000
Gross unrealized gains	53,000		600,000
Gross unrealized losses	1,000		14,000
CMBS
Fixed maturities available for sale securities
Amortized cost	1,660,000		3,279,000
Fair value	1,669,000		3,310,000
Gross unrealized gains	25,000		70,000
Gross unrealized losses	16,000		39,000
Other ABS
Fixed maturities available for sale securities
Amortized cost	1,019,000		2,104,000
Fair value	1,177,000		2,226,000
Gross unrealized gains	158,000		127,000
Gross unrealized losses	0		5,000
Other investments
Fixed maturities available for sale securities
Amortized cost	1,489,000		2,407,000
Fair value	1,595,000		2,590,000
Gross unrealized gains	106,000		183,000
Gross unrealized losses	0		0
Equity securities
Equity securities available for sale
Amortized cost	114,425,000	[1]	160,242,000	[2]
Fair value	128,424,000	[1]	184,365,000	[2]
Gross unrealized gains	14,868,000	[1]	24,188,000	[2]
Gross unrealized losses	869,000	[1]	65,000	[2]
Equity Securities Additional Disclosure [Abstract]
Diversified Equity Mutual Funds	116,000,000		168,400,000
Preferred And Common Stocks	12,400,000		16,000,000
Debt Securities [Member]
Debt and Equity Securities [Line Items]
Assets Held by Insurance Regulators	21,100,000		17,000,000
Funds Held under Reinsurance Agreements, Asset	$ 116,400,000		$ 140,000,000

[1] Comprising broadly diversified domestic equity mutual funds ($116.0 million fair value at December 31, 2011) and various preferred and common stocks invested across numerous companies and industries ($12.4 million fair value at December 31, 2011).

[2] Comprising broadly diversified domestic equity mutual funds ($168.4 million fair value at December 31, 2010) and various preferred and common stocks invested across numerous companies and industries ($16.0 million fair value at December 31, 2010).

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Note 14 - Income Taxes Summary of Income Tax Examinations (Details) (USD $) In Millions, unless otherwise specified	24 Months Ended	12 Months Ended
	Dec. 31, 2007	Dec. 31, 2011 Internal Revenue Service (IRS) [Member]		Dec. 31, 2011 State and Local Jurisdiction [Member]
Income Tax Examination [Line Items]
Proposed Increase To Tax Liability Resulting From I.R.S. Examination Of Tax Years 2000 Through 2007		$ 128
Qualified Deposit With The U.S. Department Of Treasury Relating to Tax Years 2000 Through 2004		85
Qualified Deposit With The U.S. Department Of Treasury Relating To Tax Years 2005 Through 2007		4
Amount of Claimed Income Tax Refund for Tax Years 2006 and 2007	$ 105
Income Tax Examination, Year(s) under Examination		2000 - 2010(1)	[1]	1999 - 2010	[2]

[1] We are currently contesting proposed adjustments resulting from the examination by the IRS for the 2000 through 2007 tax years. As part of this process, we have agreed to extend all relevant statute of limitations for the assessment of tax to December 31, 2012. All such statute of limitation extensions have limited the scope of the examinations to the recognition of certain tax benefits that were generated through our investment in a portfolio of residual interests in REMICs.

[2] Arizona, California, Florida, Georgia, New York, Ohio, Pennsylvania, Texas and New York City.

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Note 6 - VIEs Financial Guaranty Insurance Contracts VIEs (Details) (USD $)	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Balance Sheet Related Disclosures
Trading Securities	$ 4,211,059,000		$ 4,562,821,000
Derivative Assets	17,212,000		26,212,000
Other Assets	333,566,000		323,320,000
Unearned premiums	637,372,000		686,364,000		823,621,000
Reserve for losses and LAE	3,310,902,000		3,596,735,000		3,578,982,000
Derivative liabilities	126,006,000		723,579,000		238,697,000
VIE debt	228,240,000		520,114,000		296,080,000
Accounts payable and accrued expenses	349,726,000		258,791,000
Statement of Operations
Premiums earned	756,025,000		825,733,000		825,901,000
Net investment income	163,520,000		178,760,000		214,190,000
Gain (Loss) on Investments	202,177,000		139,944,000		257,141,000
Change in fair value of derivative instruments, gain (loss)	628,395,000		(558,712,000)		99,958,000
Net gains (losses) on other financial instruments	193,329,000		(211,681,000)		(88,569,000)
Provision for losses, (decrease) increase	1,296,521,000		1,739,244,000		1,337,574,000
Other operating expenses	175,810,000		191,942,000		203,770,000
Consolidated Financial Guaranty Insurance Contracts
Balance Sheet Related Disclosures
Trading Securities	94,500,000		83,200,000
Derivative Assets	0		0
Other Assets	105,900,000		112,400,000
Derivative liabilities	19,500,000		19,200,000
VIE debt	218,800,000		379,100,000
Accounts payable and accrued expenses	500,000		800,000
Maximum exposure (1)	580,000,000	[1]	584,600,000	[1]
Statement of Operations
Premiums earned					0
Net investment income	8,700,000		10,900,000		0
Gain (Loss) on Investments	14,700,000		0		0
Change in fair value of derivative instruments, gain (loss)	(10,700,000)		(14,500,000)		0
Net gains (losses) on other financial instruments	155,500,000		(143,500,000)		0
Provision for losses, (decrease) increase					0
Other operating expenses	3,100,000		3,500,000		0
Financial Guaranty VIE Additional Disclosure
Number Of Consolidated CDO Of ABS Transactions	1
Number Of Consolidated Other Financial Guaranty Transactions	2
Net cash inflow (outflow) for VIEs	800,000		900,000		0
Unconsolidated Financial Guaranty Insurance Contracts
Balance Sheet Related Disclosures
Derivative Assets	4,100,000		6,000,000
Premiums receivable	3,600,000		5,200,000
Unearned premiums	3,800,000		6,000,000
Reserve for losses and LAE	7,900,000		15,000,000
Derivative liabilities	79,500,000		585,900,000
Maximum exposure (1)	6,126,300,000	[1]	6,874,200,000	[1]
Statement of Operations
Premiums earned	2,600,000		2,800,000		3,500,000
Change in fair value of derivative instruments, gain (loss)	511,200,000		(478,300,000)		0
Provision for losses, (decrease) increase	(6,000,000)		6,500,000		(4,400,000)
Financial Guaranty VIE Additional Disclosure
Financial Guaranty Provided, Minimum Number Of V.I.E.s	1
Net cash inflow (outflow) for VIEs	$ 7,600,000		$ (32,100,000)		$ (2,800,000)

[1] The difference between the carrying amounts of the net asset/liability position and maximum exposure related to VIEs is primarily due to the difference between the face amount of the obligation and the recorded fair values, which include an adjustment for our non-performance risk. The maximum exposure is based on the net par amount of our insured obligations as of the reporting date.

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Note 12 - Financial Guaranty Insurance Contracts Weighted Average Risk Free Rates For Financial Guaranty (Details)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Weighted Average Discount Rate [Line Items]
Weighted Average Discount Rate, Percent	2.80%	3.69%	3.81%	2.53%

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Schedule I Summary Of Investments (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	$ 5,661,888
Summary of Investments, Other than Investments in Related Parties, Fair Value	5,785,502
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	5,783,559
US Government and Government Agencies and Authorities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	10,931
Summary of Investments, Other than Investments in Related Parties, Fair Value	13,630
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	13,630
US States and Political Subdivisions Debt Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	89,723	[1]
Summary of Investments, Other than Investments in Related Parties, Fair Value	85,440	[1]
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	85,332	[1]
All Other Corporate Bonds [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	17,267
Summary of Investments, Other than Investments in Related Parties, Fair Value	16,610
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	16,610
Residential Mortgage Backed Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	1,308
Summary of Investments, Other than Investments in Related Parties, Fair Value	1,360
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	1,360
Commercial Mortgage Backed Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	1,660
Summary of Investments, Other than Investments in Related Parties, Fair Value	1,669
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	1,669
Asset-backed Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	1,019
Summary of Investments, Other than Investments in Related Parties, Fair Value	1,177
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	1,177
Other Investments [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	1,489
Summary of Investments, Other than Investments in Related Parties, Fair Value	1,595
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	1,595
Fixed Maturities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	123,397
Summary of Investments, Other than Investments in Related Parties, Fair Value	121,481
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	121,373
Trading Assets, Excluding Debt and Equity Securities [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	4,101,355
Summary of Investments, Other than Investments in Related Parties, Fair Value	4,211,059
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	4,211,059
Common Stocks, by Industry [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	103,923
Summary of Investments, Other than Investments in Related Parties, Fair Value	118,354
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	118,354
Nonredeemable Preferred Stock [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	10,502
Summary of Investments, Other than Investments in Related Parties, Fair Value	10,070
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	10,070
Equity Securities, Investment Summary [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	114,425
Summary of Investments, Other than Investments in Related Parties, Fair Value	128,424
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	128,424
Short-term Investments [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	1,261,711
Summary of Investments, Other than Investments in Related Parties, Fair Value	1,261,703
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	1,261,703
Other Long-term Investments [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Summary of Investments, Other than Investments in Related Parties, Cost	61,000
Summary of Investments, Other than Investments in Related Parties, Fair Value	62,835
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	$ 61,000

[1] Held to maturity and available for sale.

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Note 4 - Derivative Instruments Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Derivative Instruments [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table sets forth our gross unrealized gains and gross unrealized losses on derivative assets and liabilities as of the dates indicated. Certain contracts are in an asset position because the net present value of the contractual premium we receive exceeds the net present value of our estimate of the expected future premiums that a financial guarantor of similar credit quality to us would charge to provide the same credit protection, assuming a transfer of our obligation to such financial guarantor as of the measurement date.

	December 31,
(In millions)	2011		2010
Balance Sheets
Derivative assets:
Financial Guaranty credit derivative assets	$	15.4	$	14.5
NIMS assets	1.6		10.9
Other	0.2		0.8
Total derivative assets	17.2		26.2
Derivative liabilities:
Financial Guaranty credit derivative liabilities	106.5		704.4
Financial Guaranty VIE derivative liabilities	19.5		19.2
Total derivative liabilities	126.0		723.6
Total derivative liabilities, net	$	108.8	$	697.4

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The components of the gains (losses) included in change in fair value of derivative instruments are as follows:

	Year Ended December 31,
(In millions)	2011			2010			2009
Statements of Operations
Net premiums earned—derivatives	$	41.7		$	47.1		$	55.7
Financial Guaranty credit derivatives	598.0			(583.2		)	118.0
Financial Guaranty VIE derivatives	(10.7		)	(14.5		)	—
NIMS	(1.6		)	(0.9		)	(6.2		)
Mortgage Insurance domestic and international CDSs	—			—			(4.8		)
Put options on CPS	—			(6.1		)	(56.2		)
Other	1.0			(1.1		)	(6.5		)
Change in fair value of derivative instruments	$	628.4		$	(558.7	)	$	100.0

Schedule of Derivative Instruments [Table Text Block]

The following table shows selected information about our derivative contracts:

($ in millions)	December 31, 2011
	Number of Contracts	Par/ Notional Exposure		Total Net Asset/ (Liability)
Product
NIMS related and other (1)	—	$	—	$	1.8
CDOs	74	29,493.5		(5.1		)
Non-Corporate CDOs and other derivative transactions:
Trust Preferred Securities ("TruPs")	19	1,894.2		(26.5		)
CDOs of commercial mortgage-backed securities ("CMBS")	4	1,831.0		(27.1		)
Other:
Structured finance	8	716.6		(13.4		)
Public finance	24	1,543.5		(9.5		)
Total Non-Corporate CDOs and other derivative transactions	55	5,985.3		(76.5		)
Assumed financial guaranty credit derivatives:
Structured finance	235	899.4		(8.2		)
Public finance	9	138.5		(1.3		)
Total Assumed	244	1,037.9		(9.5		)
Financial Guaranty VIE derivative liabilities (2)	—	—		(19.5		)
Grand Total	373	$	36,516.7	$	(108.8	)

________________

(1) Represents NIMS derivative assets related to consolidated NIMS VIEs. Also includes common stock warrants. Because none of these investments represent financial guaranty contracts that we issued, they cannot become liabilities, and therefore, do not represent additional par exposure.

(2) Represents the fair value of an interest rate swap included in the consolidation of one of our financial guaranty transactions. The notional amount of the interest rate swap does not represent additional par exposure, and therefore, is excluded from this table. See Note 5 for information on our maximum exposure to loss from our consolidated financial guaranty transactions.

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Note 1 - Description of Business and Recent Developments Mortgage Insurance (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Scenario, Forecast [Member]
Mortgage Insurance Data [Line Items]
Percentage Decrease In New Defaults	18.00%	30.00%	15.00%
Weighted Average Default To Claim Rate Assumption Net Of Denials And Rescissions	43.00%	40.00%
Percentage Point Change In Severity Used In Assumption Shift Analysis	1.00%
Increase To Provison For Losses Based On One Percentage Change in Default To Claim Rate	$ 67,000,000
Percentage Of Primary Insurance On Domestic First-Lien Mortgages To Total First Lien Insurance Risk In Force	93.70%
First Lien Primary Mortgage Insurance Risk In Force	32,800,000,000
Percentage Of Pool Insurance On Domestic First-Lien Mortgages To Total First Lien Insurance Risk In Force	6.30%
NonTraditional Risk In Force	$ 214,000,000
Percentage Of Non-Traditional RIF To Total RIF	1.00%
Private Mortage Insurance Protects Lenders For Loans Made With This Maximum Downpayment Percentage	20.00%
Minimum Percentage Of The Loans In Excess Of An 80% L.T.V. Which Must Be Retained By The Mortgage Originator Or Seller	10.00%
Maximum Loan To Value Percentage For G.S.E. Acquired Loans	80.00%

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Note 14 - Income Taxes Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The components of our consolidated income tax provision (benefit) are as follows:

	Year Ended December 31
(In thousands)	2011		2010			2009
Current	$	59,604	$	(155,219	)	$	(39,057	)
Deferred	6,758		381,408			(55,344		)
Total income tax provision (benefit)	$	66,362	$	226,189		$	(94,401	)

The reconciliation of taxes computed at the statutory tax rate of 35% for 2011, 2010 and 2009 to the provision (benefit) for income taxes is as follows:

	Year Ended December 31
(In thousands)	2011			2010			2009
Provision (benefit) for income taxes computed at the statutory tax rate	$	128,979		$	(552,887	)	$	(84,798	)
Change in tax resulting from:
Tax-exempt municipal bond interest and dividends received deduction (net of proration)	(5,237		)	(15,592		)	(31,539		)
Foreign tax benefit	(13,496		)	(10,397		)	(4,766		)
State tax benefit	(6,224		)	(15,692		)	(7,353		)
Unrecognized tax benefits	17,860			(25,915		)	28,192
Valuation allowance	(50,582		)	844,975			6,882
Other, net	(4,938		)	1,697			(1,019		)
Provision (benefit) for income taxes	$	66,362		$	226,189		$	(94,401	)

The significant components of our net deferred tax assets and liabilities are summarized as follows:

	December 31
(In thousands)	2011		2010
Deferred tax assets:
Accrued expenses	$	41,011	$	39,295
Unearned premiums	14,327		21,926
Premium deficiency reserves	1,275		3,758
Net operating loss	666,407		738,032
Differences in fair value of derivative and other financial instruments	—		347,772
Net unrealized loss on investments	—		15,016
Rescission premium	20,015		15,227
State net operating loss carryforward	31,825		24,499
Foreign tax credit carryforward	26,884		26,661
Depreciation	5,037		2,227
Partnership investments	64,544		—
Other	57,127		53,811
Total deferred tax assets	928,452		1,288,224
Deferred tax liabilities:
Deferred policy acquisition costs	48,969		51,916
Partnership investments	—		277,422
Convertible debt	32,091		35,164
Differences in fair value of derivative and other financial instruments	3,591		—
Net unrealized gain on investments	4,191		—
Loss reserves	9,744		9,592
Foreign currency	22		11,375
Other	16,169		23,367
Total deferred tax liabilities	114,777		408,836
Valuation allowance	797,700		851,857
Net deferred tax asset	$	15,975	$	27,531

As of December 31, 2011, we recorded a net current income tax payable of approximately $137.8 million, which primarily consists of liabilities related to applying the standards of accounting for uncertainty in income taxes and a current federal income tax recoverable of approximately $5.8 million. For federal income tax purposes, we have approximately $1.9 billion of NOL carryforwards and $26.9 million of foreign tax credit carryforwards as of December 31, 2011. To the extent not utilized, the NOL carryforwards will expire during tax years 2028 through 2030 and the foreign tax credit carryforwards will expire during tax years 2018 through 2021. Certain entities within our consolidated group have also generated approximately $31.8 million of state and local NOL carryforwards, which if unutilized, will expire during various future tax periods. During 2011, we recognized approximately $728.0 million of estimated cancellation of indebtedness taxable income resulting from our partnership interest in C-BASS, which filed for Subchapter 11 bankruptcy protection on November 12, 2010, and was formerly liquidated pursuant to the Plan of Liquidation that was confirmed on April 25, 2011. Such cancellation of indebtedness income was fully offset by our current inventory of NOLs.

For the quarter ended September 30, 2010, we determined that it was more likely than not that all of our DTA, except for approximately $10.4 million, would be realized. This determination was made after weighing both negative and positive evidence including the pre-tax profit realized for the quarter ended September 30, 2010. For the quarter ended December 31, 2010, we incurred a pre-tax loss, which was significantly higher than our projected loss. As a result of this loss, which solidified our cumulative position, coupled with expectations of an operating loss in 2011 and ongoing economic uncertainty, we concluded that our ability to rely on our projections for future taxable income, and the positive weight afforded those projections, had been severely diminished. In light of these factors, we concluded that as of December 31, 2010, an additional valuation allowance of $841.5 million was required, for a total valuation allowance of approximately $851.9 million against our total net DTA of $879.4 million. At December 31, 2011, a valuation allowance of approximately $797.7 million was recorded against our net DTA of approximately $813.7 million. The remaining DTA of approximately $16.0 million, against which we have not recorded a valuation allowance, represents our NOL carryback, which we believe may be utilized against the proposed adjustments to our taxable income by the IRS for taxable years 2000 through 2007, as described in more detail below. For the year ended December 31, 2011, our valuation allowance decreased by approximately $54.2 million, of which approximately $3.6 million of the decrease was included in other comprehensive income.

Our ability to fully use our tax assets such as NOLs and tax credit carryforwards would be substantially limited if we experience an “ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended(“IRC”). Section 382 rules governing when a change in ownership occurs are complex and subject to interpretation; however, in general, an ownership change would occur if our five percent shareholders, as defined under Section 382, collectively increase their ownership by more than 50 percentage points over a rolling three-year period. As of December 31, 2011, we have not experienced an ownership change under Section 382. However, if we were to experience a change in ownership under Section 382 in a future period, then we may be limited in our ability to fully utilize our NOL and tax credit carryforwards in future periods.

On October 8, 2009, our board of directors adopted a Tax Benefit Preservation Plan, which, as amended, was approved by our stockholders at the 2010 annual meeting. We also adopted certain amendments to our amended and restated bylaws and our stockholders approved at the 2010 annual meeting certain amendments to our amended and restated certificate of incorporation. The plan, the bylaw amendment and the charter amendment were implemented in order to protect our ability to utilize our NOLs and other tax assets and prevent an “ownership change” under U.S. federal income tax rules. These provisions restrict or discourage certain transfers of our common stock that would (i) create or result in a person becoming a five-percent shareholder under Section 382 of the IRC or (ii) increase the stock ownership of any existing five-percent shareholder under Section 382 of the IRC.

We are currently contesting proposed adjustments resulting from the examination by the IRS for the 2000 through 2007 tax years. The IRS opposes the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of residual interests in REMICs and has proposed adjustments denying the associated tax benefits of these items. The proposed adjustments relating to the 2000 through 2007 tax years, if sustained, will increase our tax liability for those years by approximately $128 million, in addition to any associated penalties and interest. We appealed these proposed adjustments to the IRS Office of Appeals (“Appeals”) and made “qualified deposits” with the U.S. Department of the Treasury to avoid the accrual of above-market-rate interest with respect to the proposed adjustments in the amount of approximately $85 million relating to the 2000 through 2004 tax years, and approximately $4 million relating to the 2005 through 2007 tax years. In late December 2010, we reached a tentative settlement agreement with Appeals. However, because we had claimed a refund of approximately $105 million with respect to our 2006 and 2007 taxable years based on a carryback of a net operating loss generated from our 2008 taxable year, review of the tentative settlement agreement by the Joint Committee on Taxation ("JCT") was required. Based on its review, the JCT has indicated that it is opposed to the currently structured settlement agreement and has recommended that Appeals reconsider the settlement agreement. Following the JCT review, Appeals has now indicated that it is reconsidering the terms of our settlement.

We are currently attempting to address the concerns regarding the proposed settlement that have been raised by Appeals and the JCT, but there is a substantial risk that we may not be able to settle the proposed adjustments with the IRS or, alternatively, that the terms of any final settlement will be significantly less favorable to us than the currently proposed settlement. Additionally, we would be required to litigate the proposed adjustments to our taxable income, if we are unable to reach any settlement, in order to avoid a full concession of the proposed tax liabilities, penalties, and interest to the IRS. If we determine that we cannot reach a settlement with the IRS and determine that our interests may be better served through litigation of the proposed adjustments, then we may incur substantial legal expenses and the litigation process may be lengthy. Based on the indication that Appeals will reconsider the proposed settlement agreement, we remeasured our tax provision and liabilities associated with these proposed IRS adjustments during the fourth quarter of 2011. After discussions with outside counsel about the issues raised in the examination and the issues surrounding the reconsideration of our settlement agreement, we believe that an adequate provision for income taxes has been made for potential liabilities that may result. However, if the final settlement agreement differs materially from our current expectations or we are unable to enter into a final settlement agreement and decide to pursue litigation of the proposed adjustments, there could be a material impact on our effective tax rate, results of operations and cash flows.

As of December 31, 2011, we have approximately $61.9 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. Our policy for the recognition of interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision. The table below details the cumulative effect of applying the provisions of the standard relating to accounting for uncertainty of income taxes as of December 31, 2011.

The effect of unrecognized tax benefits on our consolidated balance sheets and results of operations is as follows:

(In thousands)	December 31, 2010		Increase		December 31, 2011
Unrecognized tax benefits	$	92,845	$	32,912	$	125,757
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	44,040	$	17,861	$	61,901
Interest and penalties accrued	$	31,169	$	22,673	$	53,842
Interest and penalties charged to income tax expense					$	22,673

A reconciliation of the beginning and ending unrecognized tax benefits is as follows:

	Year Ended December 31
(In thousands)	2011			2010
Balance at beginning of period	$	92,845		$	143,391
Tax positions related to the current year:
Increases	1,268			2,313
Decreases	(2,005		)	—
Tax positions related to prior years:
Increases	51,480			47,020
Decreases	(17,831		)	(54,874		)
Changes in judgment	—			(5,331		)
Lapses of applicable statute of limitation	—			(39,674		)
Balance at end of period	$	125,757		$	92,845

We have taken a position in various jurisdictions that we are not required to remit taxes with regard to the income generated from our investment in certain partnership interests. Although we believe that these tax positions are more likely than not to succeed if adjudicated in a court of last resort, measurement under this standard of the potential amount of liability for state and local taxes and the potential for penalty and interest thereon is performed on a quarterly basis. Our net unrecognized tax benefits related to prior years increased approximately $33.6 million. This net increase primarily reflects the remeasurement of the tentative settlement agreement that we reached with Appeals in December 2010, and which we recently received notification that Appeals is currently reconsidering at the recommendation of the JCT. Over the next 12 months, if we are able to reach a settlement agreement with the IRS on the proposed adjustments relating to our 2000 through 2007 taxable years, then we estimate a reduction in our unrecognized tax benefits of approximately $62.4 million. In the event we are not successful in our defense of the tax positions taken for U.S. Federal income tax purposes, and for which we have recorded unrecognized tax benefits, then such adjustments originating in NOL or NOL carryback years may serve as a reduction to our existing NOL.

The following calendar tax years, listed by major jurisdiction, remain subject to examination:

U.S. Federal Corporation Income Tax	2000 - 2010(1)
Significant State and Local Jurisdictions (2)	1999 - 2010

_________________________

(1) We are currently contesting proposed adjustments resulting from the examination by the IRS for the 2000 through 2007 tax years. As part of this process, we have agreed to extend all relevant statute of limitations for the assessment of tax to December 31, 2012. All such statute of limitation extensions have limited the scope of the examinations to the recognition of certain tax benefits that were generated through our investment in a portfolio of residual interests in REMICs.

(2) Arizona, California, Florida, Georgia, New York, Ohio, Pennsylvania, Texas and New York City.

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Note 16 - Share-Based and Other Compensation Plans (Restricted Stock) (Details) (2008 Equity Plan [Member], Restricted Stock [Member], USD $)	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2011 Cash Settled [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
Unvested, Beginning of Period, Number of Shares		399,575
Unvested, Beginning of Period, Weighted Average Grant-Date Fair Value Per Share		$ 2.69
Granted, Number of Shares	375,500	0
Granted, Weighted Average Grant-Date Fair Value Per Share		$ 0.00
Vested, Number of Shares		(66,247)
Vested, Weighted Average Grant-Date Fair Value Per Share		$ 3.06
Forfeited, Number of Shares		(8,550)
Forfeited, Weighted Average Grant-Date Fair Value Per Share		$ 2.64
Unvested, End of Period, Number of Shares		324,778
Unvested, End of Period, Weighted Average Grant-Date Fair Value Per Share		$ 2.67

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Note 19 - Quarterly Financial Data

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Information [Text Block]

Quarterly Financial Data (Unaudited)

(In thousands, except per share information)

	2011 Quarters
	First			Second			Third			Fourth			Year
Net premiums earned—insurance	$	203,023		$	188,934		$	179,655		$	184,413		$	756,025
Net investment income	42,240			43,823			38,763			38,694			163,520
Net gains on investments (1)	37,435			44,236			81,640			38,866			202,177
Net impairment losses recognized in earnings	—			(11		)	(20		)	(1,171		)	(1,202		)
Net change in fair value of derivative instruments (2)	243,892			188,726			126,008			69,769			628,395
Net gains on other financial instruments (3)	75,251			5,047			80,602			32,429			193,329
Provision for losses (9)	427,373			263,566			249,598			355,984			1,296,521
Change in reserve for premium deficiency (6)	(1,383		)	(3,102		)	(1,942		)	(665		)	(7,092		)
Policy acquisition and other operating expenses	60,350			60,341			56,689			51,193			228,573
Equity in net income of affiliates	65			—			—			—			65
Net income (loss) (5)	103,006			137,115			183,568			(121,539		)	302,150
Diluted net income (loss) per share (7)(8)	$	0.77		$	1.03		$	1.37		$	(0.92	)	$	2.26
Weighted average shares outstanding (7)	133,703			133,614			133,513			133,463			133,863
	2010 Quarters
	First			Second			Third			Fourth			Year
Net premiums earned—insurance	$	198,268		$	203,446		$	203,937		$	220,082		$	825,733
Net investment income	45,358			48,619			46,554			38,229			178,760
Net gains (losses) on investments (1)	57,948			57,262			94,258			(69,524		)	139,944
Net impairment losses recognized in earnings	(18		)	(38		)	(34		)	—			(90		)
Net change in fair value of derivative instruments (2)	(77,954		)	(524,606		)	229,783			(185,935		)	(558,712		)
Net (losses) gains on other financial instruments (3)	(101,564		)	(63,200		)	4,882			(51,799		)	(211,681		)
Gain on sale of affiliate (4)	—			34,815			—			—			34,815
Provision for losses	543,880			435,166			344,389			415,809			1,739,244
Change in reserve for premium deficiency (6)	(1,231		)	(7,354		)	8,628			(14,664		)	(14,621		)
Policy acquisition and other operating expenses	79,924			51,962			54,106			59,419			245,411
Equity in net income of affiliates (4)	8,098			6,570			—			—			14,668
Net (loss) income (5)	(310,355		)	(475,080		)	112,185			(1,132,617		)	(1,805,867		)
Diluted net (loss) income per share (7)(8)	$	(3.77	)	$	(4.31	)	$	0.84		$	(8.55	)	$	(15.74	)
Weighted average shares outstanding (7)	82,341			110,282			133,520			132,434			114,697

 ______________

(1) The 2011 and 2010 periods reflect realized gains and losses on investments in connection with the continued reallocation of our investment portfolio and unrealized gains and losses on our trading securities.

(2) The change in fair value of derivative instruments for 2011 and 2010 reflects the volatility in the cumulative unrealized gain attributable to the market’s perception of our non-performance risk as a result of the changes in our CDS spread during both years.

(3) The 2011 and 2010 periods reflect losses on financial guaranty VIE debt and NIMS VIE debt, offset by realized gains on investments in connection with the continued reallocation of our investment portfolio.

(4) On May 3, 2010, we sold our remaining equity interest in Sherman, which resulted in a gain on sale of affiliate. We no longer record equity in net income of affiliates as a result of the sale.

(5) The net loss for the fourth quarter of 2011 was primarily due to an increase in both the mortgage insurance and financial guaranty provision for losses. The net loss for the fourth quarter of 2010 was due primarily to the establishment of an $841.5 million valuation allowance against our DTA during the fourth quarter.

(6) The 2011 and 2010 periods reflect changes in the provision for second-lien premium deficiency, due to the transfer of premium deficiency reserves to loss reserves, terminations of second-lien transactions, as well as changes in estimates.

(7) Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share.

(8) Net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year.

(9) The provision for losses in the fourth quarter of 2011 was primarily driven by reserves established on new default notices, which increased consistent with seasonal trends. In addition, the results include the effects of an increase in our IBNR reserve estimate.

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Note 13 - Long-Term Debt Interest Expense Recognized Related to Convertible Debt (Details) (Convertible Debt [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Convertible Debt [Member]
Schedule of Interest Expense Recognized Related to Convertible Debt [Line Items]
Contractual interest expense of convertible debt	$ 13,500	$ 1,687
Amortization of debt issuance costs	1,039	124
Amortization of debt discount	16,131	1,911
Total interest expense for convertible debt	$ 30,670	$ 3,722
Effective interest rate of the liability component of convertible debt	9.75%	9.75%

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Note 20 - Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2011

Net Income (Loss) Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The calculation of the basic and diluted net income (loss) per share was as follows:

	Year Ended December 31,
	2011		2010			2009
(In thousands, except share and per-share amounts)
Net income (loss)	$	302,150	$	(1,805,867	)	$	(147,879	)
Average common shares outstanding	132,372		114,697			81,937
Increase in shares due to potential exercise of common stock equivalents—diluted basis	1,491		—			—
Adjusted shares outstanding—diluted	133,863		114,697			81,937
Net income (loss) per share—basic	$	2.28	$	(15.74	)	$	(1.80	)
Net income (loss) per share—diluted	$	2.26	$	(15.74	)	$	(1.80	)

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Note 15 - Statutory Information Risk to Capital (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2011
Capital and Liquidity Line Items
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement	16
Number Of States Which Have A Risk To Capital Ratio Limit of 25 To 1	11
Number Of States From Which We Are Pursuing Risk Based Capital Requirement Waivers	5
Number Of States That Have Granted Waivers To Risk Based Capital Requirements	6
Parent Company
Capital and Liquidity Line Items
Unrestricted Cash And Liquid Investments Including Activity After The Balance Sheet Date	482.8

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Note 11 - Reserve for Premium Deficiency Level 3 (Tables)

12 Months Ended

Dec. 31, 2011

Reserve for Premium Deficiency [Abstract]

Second Lien Premium Deficiency Reserve [Table Text Block]

The following table reconciles our mortgage insurance segment's beginning and ending second-lien PDR for the periods indicated:

	Year Ended December 31
(In thousands)	2011			2010
Balance at January 1	$	10,736		$	25,357
Incurred losses recognized in loss reserves	(11,143		)	(10,233		)
Premiums recognized in earned premiums	2,851			2,501
Changes in underlying assumptions	595			(8,368		)
Accretion of discount and other	605			1,479
Balance at December 31	$	3,644		$	10,736

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Note 16 - Share-Based and Other Compensation Plans (Awards Summary - Tables) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011		Dec. 31, 2010		Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	$ (969)	[1]	$ 20,369	[1]	$ 15,160	[1]
Less: Costs deferred as acquisition costs	171		551		962
Stock-based compensation expense impact on net loss before income taxes - increase	(1,140)		19,818		14,198
Stock-based compensation expense impact on net loss - increase	(741)		12,882		9,229
Excess tax benefits from stock-based payments arrangements	4		0		0
Stock-based compensation expense impact on basic and diluted loss per share - increase	$ (0.01)		$ 0.11		$ 0.11
Officer LTI Plan Cash Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	500		1,100		3,000
Stock Options [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Options, Equity Instruments Outstanding	3,472,762		3,227,411
Cash Settled [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Liability Recorded	6,385		19,615		7,961
Share-based Compensation Programs, Compensation Cost Recognized	(4,717)	[1]	11,343	[1]	7,202	[1]
Cash Settled [Member] | Officer LTI Plan Cash Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Liability Recorded	0		8,397		2,778
Share-based Compensation Programs, Compensation Cost Recognized	32	[1]	5,618	[1]	2,322	[1]
Cash Settled [Member] | Restricted Stock Units (RSUs) [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Liability Recorded	5,229		4,788		3,014
Share-based Compensation Programs, Compensation Cost Recognized	480	[1]	1,774	[1]	3,014	[1]
Cash Settled [Member] | Stock Appreciation Rights (SARs) [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Liability Recorded	1,156		6,430		2,169
Share-based Compensation Programs, Compensation Cost Recognized	(5,229)	[1]	3,951	[1]	1,866	[1]
Cash Settled [Member] | Restricted Stock [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Equity Instruments Other than Options, Equity Instruments Outstanding	324,778		399,575
Equity Settled [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	3,748	[1]	9,026	[1]	7,958	[1]
Equity Settled [Member] | Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	348	[1]	321	[1]	227	[1]
Equity Settled [Member] | Restricted Stock Units (RSUs) [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	1,717	[1]	1,272	[1]	0	[1]
Share-based Compensation Programs, Equity Instruments Other than Options, Equity Instruments Outstanding	505,183		216,300		0
Equity Settled [Member] | Stock Options [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	1,558	[1]	2,214	[1]	2,619	[1]
Share-based Compensation Programs, Options, Equity Instruments Outstanding	3,472,762		3,227,411		3,264,262
Equity Settled [Member] | Phantom Stock [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	5	[1]	3,183	[1]	1,902	[1]
Share-based Compensation Programs, Equity Instruments Other than Options, Equity Instruments Outstanding	518,441		518,441		518,441
Equity Settled [Member] | Restricted Stock [Member] | 2008 Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Programs, Compensation Cost Recognized	$ 120	[1]	$ 2,036	[1]	$ 3,210	[1]
Share-based Compensation Programs, Equity Instruments Other than Options, Equity Instruments Outstanding	324,778		399,575		848,823

[1] For purposes of calculating compensation cost recognized, we consider awards effectively vested (and we recognize the full compensation costs) when grantees become retirement eligible. Under the terms of our awards, legal vesting upon retirement occurs when the grantee actually separates from service.

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Consolidated Statements of Changes in Common Stockholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Parent [Member]	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Foreign Currency Translation Adjustment	Unrealized Holding Gains/(Losses)	Other Change in Stockholders Equity
Balance, at Dec. 31, 2008		$ 2,030,710	$ 98	$ (888,057)	$ 1,350,704	$ 1,766,946	$ 13,966	$ (196,480)	$ (16,467)
Effect of Adoption of Accounting Standard (Accounting Standards Update 2009-08)		(37,587)				(37,587)
Balance, as adjusted		1,993,123	98	(888,057)	1,350,704	1,729,359	13,966	(196,480)	(16,467)
Balance, at Jan. 02, 2009
Effect of Adoption of Accounting Standard (Accounting Standards Update 2009-08)	21,500	0				21,490		(21,490)
Comprehensive Income (Loss)
Net income (loss)		(147,879)				(147,879)
Unrealized foreign currency translation adjustment, net of tax		4,319					4,319
Unrealized holding gains (losses) arising during the period, net of tax								199,700
Less: Reclassification adjustment for unrealized gains or losses realized upon the sale of securities, net of tax								54,532
Net unrealized gain on investments, net of tax		145,168						145,168
Total comprehensive income (loss)		1,608
Repurchases of common stock under incentive plans		(38)		(1,439)	1,401
Issuance of common stock under benefit plans		3,745	2		3,743
Amortization of restricted stock		3,388			3,388
Net actuarial loss		(24)							(24)
Stock-based compensation expense		4,019			4,019
Dividends declared		(827)				(827)
Balance, at Dec. 31, 2009		2,004,994	100	(889,496)	1,363,255	1,602,143	18,285	(72,802)	(16,491)
Comprehensive Income (Loss)
Net income (loss)	(1,805,867)	(1,805,867)				(1,805,867)
Unrealized foreign currency translation adjustment, net of tax							3,328
Less: Reclassification adjustment for liquidation of foreign subsidiary and net gains on sales, net of tax							519
Net foreign currency translation adjustment, net of tax		2,809					2,809
Unrealized holding gains (losses) arising during the period, net of tax								41,164
Less: Reclassification adjustment for unrealized gains or losses realized upon the sale of securities, net of tax								(3,781)
Net unrealized gain on investments, net of tax		44,945						44,945
Total comprehensive income (loss)		(1,758,113)
Sherman unrealized loss included in net loss		16,761							16,761
Repurchases of common stock under incentive plans		(2,408)		(2,516)	108
Issuance of common stock - stock offering		525,887	50		525,837
Issuance of common stock under benefit plans		3,977			3,977
Amortization of restricted stock		3,309			3,309
Additional convertible debt issuance costs, net (See Note 13)		65,701			65,701
Net actuarial loss		(31)							(31)
Stock-based compensation expense		905			905
Dividends declared		(1,202)				(1,202)
Balance, at Dec. 31, 2010	859,780	859,780	150	(892,012)	1,963,092	(204,926)	21,094	(27,857)	239
Comprehensive Income (Loss)
Net income (loss)	302,150	302,150				302,150
Unrealized foreign currency translation adjustment, net of tax							6,265
Less: Reclassification adjustment for liquidation of foreign subsidiary and net gains on sales, net of tax							27,305
Net foreign currency translation adjustment, net of tax		(21,040)					(21,040)
Unrealized holding gains (losses) arising during the period, net of tax								7,400
Less: Reclassification adjustment for unrealized gains or losses realized upon the sale of securities, net of tax								(31,928)
Net unrealized gain on investments, net of tax		39,328						39,328
Total comprehensive income (loss)		320,438
Repurchases of common stock under incentive plans		(40)		(40)
Issuance of common stock under benefit plans		742	1		741
Amortization of restricted stock		1,837			1,837
Additional convertible debt issuance costs, net (See Note 13)		(22)			(22)
Net actuarial loss		(364)							(364)
Stock-based compensation expense		1,250			1,250
Dividends declared		(1,330)			(333)	(997)
Balance, at Dec. 31, 2011	$ 1,182,291	$ 1,182,291	$ 151	$ (892,052)	$ 1,966,565	$ 96,227	$ 54	$ 11,471	$ (125)

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Note 12 - Financial Guaranty Insurance Contracts Rollforward of NPV of Financial Guaranty Premiums (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Rollforward of Premiums Receivable [Line Items]
Balance at January 1	$ 44.0	$ 54.4
Premium payments received	(5.0)	(7.1)
Accretion of premium receivable	0.9	1.3
Adjustments to installment premiums	(0.4)	(1.5)
Foreign exchange revaluation	0.8	(1.3)
Recaptures/commutation	(6.0)	(1.8)
Balance at December 31	$ 34.3	$ 44.0

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Note 3 - Segment Reporting Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Reporting

Our mortgage insurance and financial guaranty segments are strategic business units that are managed separately on an operating basis. Prior to January 1, 2011, we also had a third segment—financial services. We allocate corporate income and expenses to our mortgage insurance and financial guaranty segments based on either an allocated percentage of time spent or internally allocated capital. We allocate corporate cash and investments to our segments based on internally allocated capital. The results for each segment for each reporting period can cause significant volatility in allocated capital.

Summarized financial information concerning our current and previous operating segments, as of and for the periods indicated, are as follows:

	December 31, 2011
(In thousands)	Mortgage Insurance			Financial Guaranty			Consolidated
Net premiums written—insurance	$	717,264		$	(10,017	)	$	707,247
Net premiums earned—insurance	$	680,895		$	75,130		$	756,025
Net investment income	93,678			69,842			163,520
Net gains on investments	126,205			75,972			202,177
Net impairment losses recognized in earnings	(1,202		)	—			(1,202		)
Change in fair value of derivative instruments	(632		)	629,027			628,395
Net gains on other financial instruments	3,864			189,465			193,329
Other income	5,369			230			5,599
Total revenues	908,177			1,039,666			1,947,843
Provision for losses	1,293,857			2,664			1,296,521
Change in reserve for premium deficiency	(7,092		)	—			(7,092		)
Policy acquisition costs	36,051			16,712			52,763
Other operating expenses	132,225			43,585			175,810
Interest expense	13,894			47,500			61,394
Total expenses	1,468,935			110,461			1,579,396
Equity in net income of affiliates	—			65			65
Pretax (loss) income	(560,758		)	929,270			368,512
Income tax provision (benefit)	83,157			(16,795		)	66,362
Net (loss) income	$	(643,915	)	$	946,065		$	302,150
Cash and investments	$	3,210,279		$	2,635,889		$	5,846,168
Deferred policy acquisition costs	52,094			87,812			139,906
Total assets	3,470,103			3,186,662			6,656,765
Unearned premiums	233,446			403,926			637,372
Reserve for losses and LAE	3,247,900			63,002			3,310,902
VIE debt	9,450			218,790			228,240
Derivative liabilities	—			126,006			126,006

	December 31, 2010
(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services		Consolidated
Net premiums written—insurance	$	699,909		$	(8,028	)	$	—	$	691,881
Net premiums earned—insurance	$	739,631		$	86,102		$	—	$	825,733
Net investment income	104,030			74,730			—		178,760
Net gains on investments	84,004			55,940			—		139,944
Net impairment losses recognized in earnings	(90		)	—			—		(90		)
Change in fair value of derivative instruments	32,381			(591,093		)	—		(558,712		)
Net losses on other financial instruments	(48,137		)	(163,544		)	—		(211,681		)
Gain on sale of affiliate	—			—			34,815		34,815
Other income	7,208			364			1,124		8,696
Total revenues	919,027			(537,501		)	35,939		417,465
Provision for losses	1,730,801			8,443			—		1,739,244
Change in reserve for premium deficiency	(14,621		)	—			—		(14,621		)
Policy acquisition costs	36,102			17,367			—		53,469
Other operating expenses	141,172			50,520			250		191,942
Interest expense	11,668			30,109			—		41,777
Total expenses	1,905,122			106,439			250		2,011,811
Equity in net income of affiliates	—			78			14,590		14,668
Pretax (loss) income	(986,095		)	(643,862		)	50,279		(1,579,678		)
Income tax provision	157,082			51,509			17,598		226,189
Net (loss) income	$	(1,143,177	)	$	(695,371	)	$	32,681	$	(1,805,867	)
Cash and investments	$	4,037,578		$	2,643,052		$	—	$	6,680,630
Deferred policy acquisition costs	41,939			106,387			—		148,326
Total assets	4,801,953			2,818,934			—		7,620,887
Unearned premiums	197,260			489,104			—		686,364
Reserve for losses and LAE	3,524,971			71,764			—		3,596,735
VIE debt	141,006			379,108			—		520,114
Derivative liabilities	—			723,579			—		723,579

	December 31, 2009
(In thousands)	Mortgage Insurance			Financial Guaranty			Financial Services			Consolidated
Net premiums written—insurance	$	630,076		$	(186,228	)	$	—		$	443,848
Net premiums earned—insurance	$	724,423		$	101,478		$	—		$	825,901
Net investment income	129,871			84,315			4			214,190
Net gains on investments	161,637			95,504			—			257,141
Net impairment losses recognized in earnings	(9,246		)	(23		)	—			(9,269		)
Change in fair value of derivative instruments	(14,428		)	114,386			—			99,958
Net (losses) gains on other financial instruments	(96,022		)	7,453			—			(88,569		)
Other income	12,258			1,394			374			14,026
Total revenues	908,493			404,507			378			1,313,378
Provision for losses	1,300,827			36,747			—			1,337,574
Change in reserve for premium deficiency	(61,504		)	—			—			(61,504		)
Policy acquisition costs	27,563			35,471			—			63,034
Other operating expenses	140,487			67,223			(3,940		)	203,770
Interest expense	15,372			30,638			—			46,010
Total expenses	1,422,745			170,079			(3,940		)	1,588,884
Equity in net income of affiliates	—			—			33,226			33,226
Pretax (loss) income	(514,252		)	234,428			37,544			(242,280		)
Income tax (benefit) provision	(176,456		)	68,641			13,414			(94,401		)
Net (loss) income	$	(337,796	)	$	165,787		$	24,130		$	(147,879	)
Cash and investments	$	3,775,682		$	2,438,694		$	—		$	6,214,376
Deferred policy acquisition costs	35,854			124,427			—			160,281
Total assets	4,949,815			2,985,919			121,424			8,057,158
Unearned premiums	240,346			583,275			—			823,621
Reserve for losses and LAE	3,450,538			128,444			—			3,578,982
VIE debt	287,995			8,085			—			296,080
Derivative liabilities	—			238,697			—			238,697

Net premiums earned attributable to foreign countries and long-lived assets located in foreign countries were immaterial for the periods presented.

As of December 31, 2011, California is the only state that accounted for more than 10% of our mortgage insurance business measured by primary risk in force. California accounted for 15.3% of our mortgage insurance segment's direct primary new insurance written ("NIW") for the year ended December 31, 2011, compared to 12.8% and 16.9% for the years ended December 31, 2010 and 2009, respectively. At December 31, 2011, California accounted for 11.8% of our mortgage insurance segment's primary risk in force at December 31, 2011, compared to 11.4% at December 31, 2010. California also accounted for 10.5% of our mortgage insurance segment's pool risk in force at December 31, 2011, compared to 10.9% at December 31, 2010.

The largest single mortgage insurance customer (including branches and affiliates), measured by primary NIW, accounted for 10.1% of NIW during 2011, compared to 15.5% and 16.1% in 2010 and 2009, respectively. At December 31, 2011 and 2010, we received premium revenue from two of our mortgage insurance customers, each of which exceeded 10% of our consolidated revenues.

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Note 5 - Fair Value of Financial Instruments Impact of Non-Performance Risk on Fair Value Disclosure (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 years		Dec. 31, 2010		Dec. 31, 2009	Dec. 31, 2008
Fair Value Liability before Consideration of Radian Non Performance Risk
Fair Value Concentration of Risk Disclosure Items [Line Items]
Corporate CDOs	463.1		387.1
Non Corporate CDO Related	1,520.2	[1]	1,696.2	[1]
NIMs related	17.4	[2]	134.1	[2]
Derivative Assets (Liabilities), at Fair Value, Net	2,000.7		2,217.4
Impact of Radian Non Performance Risk
Fair Value Concentration of Risk Disclosure Items [Line Items]
Corporate CDOs	(458.0)		(281.5)
Non Corporate CDO Related	(1,405.3)	[1]	(934.1)	[1]
NIMs related	(9.6)	[2]	(4.8)	[2]
Derivative Assets (Liabilities), at Fair Value, Net	(1,872.9)		(1,220.4)
Fair Value Liability Recorded Net of Radian Non Performance Risk
Fair Value Concentration of Risk Disclosure Items [Line Items]
Corporate CDOs	5.1		105.6
Non Corporate CDO Related	114.9	[1]	762.1	[1]
NIMs related	7.8	[2]	129.3	[2]
Derivative Assets (Liabilities), at Fair Value, Net	127.8		997.0
Fair Value, Concentration of Risk, Market Risk Management, Additional Details [Member]
Fair Value Concentration of Risk Disclosure Items [Line Items]
Number Of Years In Which The Market Believes Radian Group Will Default	5
Five Year CDS Spread Details [Abstract]
Radian Group's five year CDS Spread (in basis points)	2,732		465		1,530	2,466
Number of Years for CDS Spread Related to Non Performance Risk In Fair Value Disclosure	5
Fair Value, Concentration of Risk, Market Risk Management, Additional Details [Member] | Impact of Radian Non Performance Risk
Fair Value Concentration of Risk Disclosure Items [Line Items]
Market View Of The Probability That Radian Group Will Default In The Next Five Years	84.00%		32.00%
Change in Impact of Non Performance Risk on Fair Value of Financial Instruments	652.5

[1] Includes the net liability recorded within derivative assets and derivative liabilities, and the net liability recorded within VIE debt and other financial statement line items for consolidated VIEs.

[2] Includes NIMS VIE debt and NIMS derivative assets.

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Note 10 - Losses and LAE Mortgage Insurance Reserves by Product (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011		Dec. 31, 2010
Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	$ 3,247,900		$ 3,524,971
First Lien Mortgage Insurance Products [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	3,236,793		3,498,657
Total Primary Reserves Mortgage Insurance Products [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	2,883,210		2,932,092
Prime Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	1,748,412		1,607,741
Alt A Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	612,423		687,960
A Minus and Below Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	370,806		413,137
Reinsurance Recoverables Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	151,569	[1]	223,254	[1]
Pool Insurance Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	353,583		566,565
Second Lien Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	11,070	[2]	26,161	[2]
Other Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims and Claims Adjustment Expense, Net	$ 37		$ 153
Mortgage Insurance Segment | Primary Risk In Force [Member] | Concentration of Risk, Geographical, California, Florida and Texas [Member]
Liability for Future Policy Benefit, by Product Segment [Line Items]
Concentration Risk, Percentage	19.50%

[1] Represents ceded losses on captive transactions and Smart Home.

[2] Does not include second-lien premium deficiency reserve.

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Note 16 - Share-Based and Other Compensation Plans (Awards Summary - Textual) (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended	0 Months Ended	12 Months Ended	24 Months Ended	0 Months Ended	12 Months Ended	24 Months Ended	0 Months Ended	12 Months Ended	24 Months Ended	12 Months Ended	36 Months Ended		12 Months Ended						0 Months Ended	12 Months Ended	24 Months Ended
	Dec. 31, 2011	May 13, 2009 Performance Based RSUs [Member]	Dec. 31, 2011 Performance Based RSUs [Member]	May 10, 2011 Performance Based RSUs [Member]	May 13, 2009 Phantom Stock [Member]	Dec. 31, 2011 Phantom Stock [Member]	May 10, 2011 Phantom Stock [Member]	May 13, 2009 Restricted Stock [Member]	Dec. 31, 2011 Restricted Stock [Member]	May 10, 2011 Restricted Stock [Member]	Dec. 31, 2011 2008 Equity Plan [Member]	Dec. 31, 2011 2008 Equity Plan [Member] years	Dec. 31, 2008 2008 Equity Plan [Member]	Dec. 31, 2011 2008 Equity Plan [Member] Minimum [Member] days	Dec. 31, 2011 2008 Equity Plan [Member] Maximum [Member] years	Dec. 31, 2011 1995 Equity Plan [Member]	Dec. 31, 2011 Equity Settled [Member] 2008 Equity Plan [Member] Performance Based RSUs [Member]	Dec. 31, 2011 Equity Settled [Member] 2008 Equity Plan [Member] Performance Based RSUs [Member] Minimum [Member]	Dec. 31, 2011 Equity Settled [Member] 2008 Equity Plan [Member] Performance Based RSUs [Member] Maximum [Member]	May 13, 2009 Equity Settled [Member] 2008 Equity Plan [Member] Restricted Stock Units (RSUs) [Member]	Dec. 31, 2011 Equity Settled [Member] 2008 Equity Plan [Member] Restricted Stock Units (RSUs) [Member]	May 10, 2011 Equity Settled [Member] 2008 Equity Plan [Member] Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum contractual term for all awards												10
Number of shares of common stock authorized for issuance													6,417,000
Number of shares remaining available for grant (shares reserve)											3,271,288	3,271,288
Share-based Compensation, Reduction of Shares Available for Grant by Each Grant of Equity Award		1.33	1.19	1.14	1.33	1.19	1.14	1.33	1.19	1.14										1.33	1.19	1.14
Share-based Compensation, Performance Target Weight as Percentage of Total Performance Target																	150.00%	0.00%	150.00%
Share-based Compensation Arrangement By Share-based Payment Award Number of Shares Available for Grant Excluding Adjustments											3,605,648	3,605,648
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Third Anniversary											50.00%
Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage of Total Award, Fourth Anniversary											50.00%
Third party minimum threshold percentage acquisition of outstanding common stock											40.00%					20.00%
Share-based Compensation Arrangements, Number of Months (Rolling) Used For Calculation of Change in Control	24
Percentage of Change in Members of Board of Directors Defined As Change in Control	75.00%
Percentage of Board of Directors Who Oppose Change in Control	75.00%
Change of control, grantee employment termination, vesting period range (in days and years)														90	1
Change of control, estimated pre-tax accounting charge, acceleration of compensation expense											$ 7.4

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Note 7 - Investments Gain (Loss) on Investments (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Gain (Loss) on Investments [Line Items]
Trading Securities	$ 4,211,059,000	$ 4,562,821,000
Fixed-maturities held to maturity	491,000	295,000	133,000
Fixed-maturities available for sale	(52,473,000)	(7,661,000)	91,577,000
Equities available for sale	6,228,000	2,001,000	764,000
Trading securities	121,393,000	66,351,000	107,479,000
Short-term investments	(1,000)	(67,000)	14,000
Other invested assets	0	388,000	822,000
Net realized gains (losses) on investments	75,638,000	61,307,000	200,789,000
Unrealized gains (losses) on trading securities	126,539,000	78,637,000	56,352,000
Total gains (losses) on investments	202,177,000	139,944,000	257,141,000
Available-for-sale Securities, Transfers to Trading, Gross Gains		3,100,000
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold			$ 868,000

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Note 20 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2011

Net Income (Loss) Per Share [Abstract]

Earnings Per Share [Text Block]

Net Income (Loss) Per Share

Basic net income (loss) per share is based on the weighted average number of common shares outstanding, while diluted net income (loss) per share is based on the weighted average number of common shares outstanding and common stock equivalents that would arise from the exercise of stock options.

The calculation of the basic and diluted net income (loss) per share was as follows:

	Year Ended December 31,
	2011		2010			2009
(In thousands, except share and per-share amounts)
Net income (loss)	$	302,150	$	(1,805,867	)	$	(147,879	)
Average common shares outstanding	132,372		114,697			81,937
Increase in shares due to potential exercise of common stock equivalents—diluted basis	1,491		—			—
Adjusted shares outstanding—diluted	133,863		114,697			81,937
Net income (loss) per share—basic	$	2.28	$	(15.74	)	$	(1.80	)
Net income (loss) per share—diluted	$	2.26	$	(15.74	)	$	(1.80	)

For the year ended December 31, 2011, 2,490,462 shares of our common stock equivalents issued under our stock-based compensation plans were not included in the calculation of diluted net income per share as of such date because they were anti-dilutive. As a result of our net loss in 2010 and 2009, 4,366,342 and 4,635,530 shares, respectively, of our common stock equivalents issued under our stock-based compensation plans were not included in the calculation of diluted net loss per share because they were anti-dilutive.

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Note 16 - Share-Based and Other Compensation Plans (Unrecognized Compensation Expense) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 years	Dec. 31, 2010	Dec. 31, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to unvested portion of all stock-based awards	$ 7.4	$ 7.8	$ 6.9
Unrecognized compensation expense weighted average recognition period (in years)	2.4

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Schedule II Financial Information of Registrant Parent Company Only Financial Information (Details) (USD $)	12 Months Ended										3 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2010 Seven Point Seven Five Percent Debentures due 2011 [Member]	Dec. 31, 2009 Seven Point Seven Five Percent Debentures due 2011 [Member]	Dec. 31, 2011 Seven Point Seven Five Percent Debentures due 2011 [Member]	May 01, 2001 Seven Point Seven Five Percent Debentures due 2011 [Member]	Dec. 31, 2011 3.00% Convertible Senior Notes due 2017 [Member]	Dec. 31, 2010 3.00% Convertible Senior Notes due 2017 [Member]	Nov. 01, 2010 3.00% Convertible Senior Notes due 2017 [Member]	Dec. 31, 2009 Parent Company	Dec. 31, 2011 Parent Company	Dec. 31, 2010 Parent Company		Dec. 31, 2009 Parent Company	Dec. 31, 2010 Parent Company Seven Point Seven Five Percent Debentures due 2011 [Member]	Dec. 31, 2011 Radian Guaranty Inc [Member]	Dec. 31, 2010 Radian Guaranty Inc [Member]	Dec. 31, 2010 CMAC Of Texas [Member]
Balance Sheet Related Disclosures
Trading Securities	$ 4,211,059,000	$ 4,562,821,000										$ 387,239,000	$ 482,873,000
Short-term Investments	1,261,703,000	1,537,498,000										177,116,000	333,687,000
Other Investments and Securities, at Cost	61,000,000	59,627,000										25,000,000	25,000,000
Cash	35,589,000	20,334,000	41,574,000								325,000	453,000	1,945,000		325,000
Restricted Cash and Cash Equivalents	27,020,000	31,413,000										1,060,000	1,835,000
Investments In Subsidiaries At Equity In Net Assets												1,591,914,000	1,027,499,000	[1]
Unamortized Debt Issuance Expense												8,414,000	9,804,000
Related Party Transaction, Due from (to) Related Party												(2,451,000)	(7,306,000)				100,000,000
Property, Plant and Equipment, Net	11,044,000	13,024,000										2,017,000	3,755,000
Other Assets	333,566,000	323,320,000										35,474,000	20,886,000
Total assets	6,656,765,000	7,620,887,000	8,057,158,000									2,231,138,000	1,914,590,000
Accounts Payable and Other Accrued Liabilities												123,665,000	31,734,000
Interest Payable												7,558,000	8,594,000
Long-term Debt	818,584,000	964,788,000		160,344,000		0		316,498,000	300,367,000			818,584,000	964,788,000
Accrued Income Taxes												99,040,000	49,644,000	[1]
Total liabilities	5,474,474,000	6,761,107,000										1,048,847,000	1,054,760,000
Common Stock, Value, Issued	151,000	150,000										151,000	150,000
Treasury Stock, Value	(892,052,000)	(892,012,000)										(892,052,000)	(892,012,000)
Additional paid-in capital	1,966,565,000	1,963,092,000										1,966,565,000	1,963,092,000
Retained Earnings (Accumulated Deficit)	96,227,000	(204,926,000)										96,227,000	(204,926,000)
Accumulated Other Comprehensive Income (Loss), Net of Tax	11,400,000	(6,524,000)										11,400,000	(6,524,000)
Total stockholders’ equity	1,182,291,000	859,780,000										1,182,291,000	859,780,000
Total Liabilities And Stockholders Equity Parent Company												2,231,138,000	1,914,540,000
Income Statement [Abstract]
Net Investment Income												15,890,000	8,626,000		222,000
Net gains on investments	(202,177,000)	(139,944,000)	(257,141,000)									(24,603,000)	(61,120,000)		(280,000)
Net gains (losses) on other financial instruments	193,329,000	(211,681,000)	(88,569,000)									1,085,000	2,496,000		11,970,000
Other Income	5,599,000	8,696,000	14,026,000									3,000	220,000		280,000
Total revenues	1,947,843,000	417,465,000	1,313,378,000									41,581,000	72,462,000		12,752,000
Interest expense	61,394,000	41,777,000	46,010,000									16,132,000	1,911,000		0
Total expenses	61,394,000	41,777,000	46,010,000									16,132,000	1,911,000		0
Pretax income (loss)	368,512,000	(1,579,678,000)	(242,280,000)									25,449,000	70,551,000		12,752,000
Income Tax Expense (Benefit)	66,362,000	226,189,000	(94,401,000)									(201,741,000)	(209,235,000)	[1]	7,563,000
Equity In Net Income (Loss) Of Affiliate												74,960,000	(2,085,653,000)	[1]	(153,068,000)
Net income (loss)	302,150,000	(1,805,867,000)	(147,879,000)									302,150,000	(1,805,867,000)		(147,879,000)
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net income (loss)	302,150,000	(1,805,867,000)	(147,879,000)									302,150,000	(1,805,867,000)		(147,879,000)
Net gains on investments	(202,177,000)	(139,944,000)	(257,141,000)									(24,603,000)	(61,120,000)		(280,000)
Gains (Losses) on Extinguishment of Debt				2,500,000	12,000,000							0	(2,496,000)		(11,970,000)
Equity in undistributed net (income) loss of subsidiaries and affiliates												(400,561,000)	2,049,175,000	[1]	258,483,000
Increase (decrease) in federal income taxes												49,396,000	(274,778,000)	[1]	11,968,000
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries												0	0		74,369,000
Change in other assets	65,388,000	(34,405,000)	3,641,000									13,384,000	35,797,000		6,041,000
Change in accounts payable and accrued expenses	53,836,000	(20,014,000)	30,342,000									90,895,000	(20,711,000)		8,403,000
Net Cash Provided by (Used in) Operating Activities												30,661,000	(80,000,000)		199,135,000
Net Cash Provided by (Used in) Investing Activities [Abstract]
Proceeds from sales of fixed-maturity investments available for sale	136,217,000	1,218,460,000	2,463,626,000									0	4,083,000		3,924,000
Sales/redemptions of trading securities	6,028,267,000	4,735,215,000	536,601,000									151,840,000	57,989,000		0
Purchases of trading securities	(5,456,565,000)	(6,126,303,000)	(2,577,599,000)									32,825,000	455,724,000		0
Sales/redemptions of short-term investments, net	276,082,000	(86,071,000)	(271,041,000)									156,665,000	(230,392,000)		(51,159,000)
Purchases of other invested assets												0	(25,000,000)		0
Purchases of property and equipment, net	2,976,000	2,516,000	4,300,000									(523,000)	(1,367,000)		(2,390,000)
Capital contributions to subsidiaries and affiliates												(145,987,000)	(423,146,000)		(5,600,000)
Capital distributions (to) from subsidiaries and affiliates												7,000	268,530,000		0
Net cash provided by (used in) investing activities	1,072,655,000	(47,785,000)	83,461,000									129,177,000	(805,027,000)		(55,225,000)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Payments of Dividends, Common Stock	1,330,000	1,202,000	827,000									(1,330,000)	(1,202,000)		(827,000)
Issuance of long-term debt												0	391,310,000		0
Repayments of Lines of Credit	0	0	100,000,000												(100,000,000)
Paydown of other borrowings												0	0
Extinguishment of Debt, Amount	160,000,000	29,348,000	45,622,000									(160,000,000)	(29,348,000)		(45,622,000)
Proceeds from Issuance of Common Stock	0	525,887,000	0									0	525,887,000		0
Net Cash Provided by (Used in) Financing Activities	(161,326,000)	886,647,000	(146,449,000)									(161,330,000)	886,647,000		(146,449,000)
Cash and Cash Equivalents, Period Increase (Decrease)	15,255,000	(21,240,000)	(34,255,000)									(1,492,000)	1,620,000		(2,539,000)
Cash, beginning of period	20,334,000	41,574,000	75,829,000									1,945,000	325,000		2,864,000
Cash, end of period	35,589,000	20,334,000	41,574,000								325,000	453,000	1,945,000		325,000
Supplemental Notes [Abstract]
Prior Period Adjustment, Provision For Income Taxes													79,700,000
Restricted Funds Included In Short Term Investments												27,700,000	19,400,000
Restricted Cash Held As Collateral For Insurance Trust Agreement												1,100,000	900,000
Costs and Expenses	1,579,396,000	2,011,811,000	1,588,884,000									100,700,000	105,200,000		115,800,000
Distributions from subsidiaries and affiliates												0	0		74,369,000
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Sale of Interest by Parent											98,000,000
Capital Contributions												146,000,000						322,000,000	101,000,000
Redemption of long-term debt				31,900,000	57,700,000											31,900,000
Debt Instrument, Interest Rate, Stated Percentage						7.75%	7.75%	3.00%		3.00%
Debt Instrument, Face Amount							250,000,000	450,000,000	450,000,000	450,000,000
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months												0
Long-term Debt, Maturities, Repayments of Principal in Year Two												252,267,000
Long-term Debt, Maturities, Repayments of Principal in Year Three												0
Long-term Debt, Maturities, Repayments of Principal in Year Four												249,819,000
Long-term Debt, Maturities, Repayments of Principal in Year Five												0
Long-term Debt, Maturities, Repayments of Principal after Year Five												316,498,000
Long-term Debt	818,584,000	964,788,000		160,344,000		0		316,498,000	300,367,000			818,584,000	964,788,000
Subsidiary or Equity Method Investee, Cumulative Proceeds Received on All Transactions												17,000,000
Payments for (Proceeds from) Businesses and Interest in Affiliates																	6,000,000
Related Party Transaction, Due from (to) Related Party												$ (2,451,000)	$ (7,306,000)				$ 100,000,000

[1] See Note A

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Note 19 - Quarterly Financial Data (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended	12 Months Ended			3 Months Ended																12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011 Quarterly Financial Data (Unaudited) [Member]		Sep. 30, 2011 Quarterly Financial Data (Unaudited) [Member]		Jun. 30, 2011 Quarterly Financial Data (Unaudited) [Member]		Mar. 31, 2011 Quarterly Financial Data (Unaudited) [Member]		Dec. 31, 2010 Quarterly Financial Data (Unaudited) [Member]		Sep. 30, 2010 Quarterly Financial Data (Unaudited) [Member]		Jun. 30, 2010 Quarterly Financial Data (Unaudited) [Member]		Mar. 31, 2010 Quarterly Financial Data (Unaudited) [Member]		Dec. 31, 2011 Quarterly Financial Data (Unaudited) [Member]		Dec. 31, 2010 Quarterly Financial Data (Unaudited) [Member]
Net premiums earned-insurance		$ 756,025,000	$ 825,733,000	$ 825,901,000	$ 184,413,000		$ 179,655,000		$ 188,934,000		$ 203,023,000		$ 220,082,000		$ 203,937,000		$ 203,446,000		$ 198,268,000		$ 756,025,000		$ 825,733,000
Net investment income		163,520,000	178,760,000	214,190,000	38,694,000		38,763,000		43,823,000		42,240,000		38,229,000		46,554,000		48,619,000		45,358,000		163,520,000		178,760,000
Gain (Loss) on Investments		202,177,000	139,944,000	257,141,000	38,866,000	[1]	81,640,000	[1]	44,236,000	[1]	37,435,000	[1]	(69,524,000)	[1]	94,258,000	[1]	57,262,000	[1]	57,948,000	[1]	202,177,000	[1]	139,944,000	[1]
Net impairment losses recognized in earnings		(1,202,000)	(90,000)	(9,269,000)	(1,171,000)		(20,000)		(11,000)		0		0		(34,000)		(38,000)		(18,000)		(1,202,000)		(90,000)
Change in fair value of derivative instruments		628,395,000	(558,712,000)	99,958,000	69,769,000	[2]	126,008,000	[2]	188,726,000	[2]	243,892,000	[2]	(185,935,000)	[2]	229,783,000	[2]	(524,606,000)	[2]	(77,954,000)	[2]	628,395,000	[2]	(558,712,000)	[2]
Net gains (losses) on other financial instruments		193,329,000	(211,681,000)	(88,569,000)	32,429,000	[3]	80,602,000	[3]	5,047,000	[3]	75,251,000	[3]	(51,799,000)	[3]	4,882,000	[3]	(63,200,000)	[3]	(101,564,000)	[3]	193,329,000	[3]	(211,681,000)	[3]
Gain on sale of affiliate		0	34,815,000	0									0		0		34,815,000	[4]	0				34,815,000	[4]
Provision for losses		1,296,521,000	1,739,244,000	1,337,574,000	355,984,000	[5]	249,598,000		263,566,000		427,373,000		415,809,000		344,389,000		435,166,000		543,880,000		1,296,521,000		1,739,244,000
Change in reserve for premium deficiency		(7,092,000)	(14,621,000)	(61,504,000)	(665,000)	[6]	(1,942,000)	[6]	(3,102,000)	[6]	(1,383,000)	[6]	(14,664,000)	[6]	8,628,000	[6]	(7,354,000)	[6]	(1,231,000)	[6]	(7,092,000)	[6]	(14,621,000)	[6]
Policy Acquisition Amortization Expense And Other Operating Expenses					51,193,000		56,689,000		60,341,000		60,350,000		59,419,000		54,106,000		51,962,000		79,924,000		228,573,000		245,411,000
Equity in net income of affiliates		65,000	14,668,000	33,226,000	0		0		0		65,000		0	[4]	0	[4]	6,570,000	[4]	8,098,000	[4]	65,000		14,668,000	[4]
Net income (loss)		302,150,000	(1,805,867,000)	(147,879,000)	(121,539,000)	[7]	183,568,000		137,115,000		103,006,000		(1,132,617,000)	[7]	112,185,000		(475,080,000)		(310,355,000)		302,150,000		(1,805,867,000)
Diluted net income (loss) per share		$ 2.26	$ (15.74)	$ (1.80)	$ (0.92)	[8],[9]	$ 1.37	[8],[9]	$ 1.03	[8],[9]	$ 0.77	[8],[9]	$ (8.55)	[8],[9]	$ 0.84	[8],[9]	$ (4.31)	[8],[9]	$ (3.77)	[8],[9]	$ 2.26	[8],[9]	$ (15.74)	[8],[9]
Weighted-average number of common and common equivalent shares outstanding—diluted		133,863	114,697	81,937	133,463	[9]	133,513	[9]	133,614	[9]	133,703	[9]	132,434	[9]	133,520	[9]	110,282	[9]	82,341	[9]	133,863	[9]	114,697	[9]
Valuation Allowance, Deferred Tax Asset, Change in Amount	$ 841,500,000	$ 54,200,000											$ 841,500,000

[1] The 2011 and 2010 periods reflect realized gains and losses on investments in connection with the continued reallocation of our investment portfolio and unrealized gains and losses on our trading securities.

[2] The change in fair value of derivative instruments for 2011 and 2010 reflects the volatility in the cumulative unrealized gain attributable to the market’s perception of our non-performance risk as a result of the changes in our CDS spread during both years.

[3] The 2011 and 2010 periods reflect losses on financial guaranty VIE debt and NIMS VIE debt, offset by realized gains on investments in connection with the continued reallocation of our investment portfolio.

[4] On May 3, 2010, we sold our remaining equity interest in Sherman, which resulted in a gain on sale of affiliate. We no longer record equity in net income of affiliates as a result of the sale.

[5] The provision for losses in the fourth quarter of 2011 was primarily driven by reserves established on new default notices, which increased consistent with seasonal trends. In addition, the results include the effects of an increase in our IBNR reserve estimate.

[6] The 2011 and 2010 periods reflect changes in the provision for second-lien premium deficiency, due to the transfer of premium deficiency reserves to loss reserves, terminations of second-lien transactions, as well as changes in estimates.

[7] The net loss for the fourth quarter of 2011 was primarily due to an increase in both the mortgage insurance and financial guaranty provision for losses. The net loss for the fourth quarter of 2010 was due primarily to the establishment of an $841.5 million valuation allowance against our DTA during the fourth quarter.

[8] Net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year.(9)The provision for losses in the fourth quarter of 2011 was primarily driven by reserves established on new default notices, which increased consistent with seasonal trends. In addition, the results include the effects of an increase in our IBNR reserve estimate.

[9] Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share.

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Note 7 - Investments Schedule of Contractual Maturities (Details) (USD $)	Dec. 31, 2011		Dec. 31, 2010
Held-to-maturity Securities, Amortized Cost
Total held to maturity amortized cost	$ 2,640,000		$ 10,773,000
Held-to-maturity Securities, Fair Value
Total held to maturity fair value	2,748,000		11,416,000
Available-for-sale Securities, Amortized Cost
Amortized cost	120,757,000		340,795,000
Available-for-sale Securities, Fair Value
Fair value	118,733,000		273,799,000
Debt Securities
Held-to-maturity Securities, Amortized Cost
Total held to maturity amortized cost	2,640,000
Held-to-maturity Securities, Fair Value
Total held to maturity fair value	2,748,000
Available-for-sale Securities, Amortized Cost
Amortized cost	120,757,000
Available-for-sale Securities, Fair Value
Fair value	118,733,000
Non Asset Backed Security Investments, Contractual Maturities
Held-to-maturity Securities, Amortized Cost
Due in one year or less	1,912,000	[1]
Due after one year through five years	424,000	[1]
Due after five years through ten years	0	[1]
Due after ten years	304,000	[1]
Held-to-maturity Securities, Fair Value
Due in one year or less	2,022,000	[1]
Due after one year through five years	428,000	[1]
Due after five years through ten years	0	[1]
Due after ten years	298,000	[1]
Available-for-sale Securities, Amortized Cost
Due in one year or less	1,944,000	[1]
Due after one year through five years	16,594,000	[1]
Due after five years through ten years	5,678,000	[1]
Due after ten years	92,554,000	[1]
Available-for-sale Securities, Fair Value
Due in one year or less	1,834,000	[1]
Due after one year through five years	17,135,000	[1]
Due after five years through ten years	5,326,000	[1]
Due after ten years	90,232,000	[1]
RMBS
Available-for-sale Securities, Amortized Cost
Amortized cost	1,308,000	[2]
Available-for-sale Securities, Fair Value
Fair value	1,360,000	[2]
CMBS
Available-for-sale Securities, Amortized Cost
Amortized cost	1,660,000	[2]
Available-for-sale Securities, Fair Value
Fair value	1,669,000	[2]
Other ABS
Available-for-sale Securities, Amortized Cost
Amortized cost	1,019,000	[2]
Available-for-sale Securities, Fair Value
Fair value	$ 1,177,000	[2]

[1] Actual maturities may differ as a result of calls before scheduled maturity.

[2] RMBS, CMBS and Other ABS are shown separately, as they are not due at a single maturity date.

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Note 8 - Investments in Affiliates (Tables)

12 Months Ended

Dec. 31, 2011

Investment in Affiliates [Abstract]

Investments in and Advances to Affiliates [Table Text Block]

The following is a rollforward of our investment in Sherman prior to the sale and selected financial information for Sherman:

	Year Ended December 31,
(In thousands)	2010			2009
Sherman
Balance, beginning of period	$	121,424		$	99,656
Share of net income for period	14,590			33,226
Dividends received	(29,498		)	(11,040		)
Other comprehensive loss	(381		)	(418		)
Sale of ownership interest	(106,135		)	—
Balance, end of period	$	—		$	121,424
Portfolio Information:
Sherman
Total assets	n/a			$	1,913,296
Total liabilities	n/a			1,461,076

_____________

n/a—not applicable

(In thousands)	Year Ended December 31, 2009
Summary Income Statement:
Sherman
Income
Revenues from receivable portfolios—net of amortization	$	1,216,742
Other revenues	16,873
Derivative mark-to-market	12,071
Total revenues	1,245,686
Expenses
Operating and servicing expenses	515,125
Provision for loan losses	446,917
Interest	105,537
Other	42,542
Total expenses	1,110,121
Net income	$	135,565

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Note 13 - Long-Term Debt Level 1 (Notes)

12 Months Ended

Dec. 31, 2011

Long-term Debt, Unclassified [Abstract]

Long-term Debt [Text Block]

Long-Term Debt

The composition of our long-term debt at December 31, 2011 and 2010 was as follows:

(In thousands)			December 31, 2011		December 31 2010
7.75	%	Debentures due 2011	$	—	$	160,344
5.625	%	Senior Notes due 2013	252,267		254,305
5.375	%	Senior Notes due 2015	249,819		249,772
3.00	%	Convertible Senior Notes due 2017	316,498		300,367
		Total long-term debt	$	818,584	$	964,788

In May 2001, we issued $250 million of 7.75% debentures due June 1, 2011. During 2009, we repurchased $57.7 million of outstanding principal on these debentures at an average purchase price of approximately $0.79 per dollar of principal, and recorded a gain of $12.0 million. During 2010, we repurchased an additional $31.9 million of this debt at an average purchase price of approximately $0.92 per dollar of principal, and recorded a gain of $2.5 million. The gains on these repurchases are included in net gains (losses) on other financial instruments on our consolidated statements of operations. We repaid the remaining outstanding balance of these debentures upon maturity on June 1, 2011.

In February 2003, we issued $250 million of unsecured senior notes. These notes bear interest at the rate of 5.625% per annum, payable semi-annually on February 15 and August 15. These notes mature on February 15, 2013. We have the option to redeem some or all of the notes at any time with not less than 30 days' notice at a redemption price equal to the greater of the principal amount of the notes or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed. In April 2004, we entered into interest-rate swap contracts that effectively converted the interest rate on this fixed-rate debt to a variable rate based on a spread over the six-month London Interbank Offered Rate (“LIBOR”). We terminated these swaps in January 2008. The basis adjustment of $11.5 million that resulted from the interest-rate swaps, and that was recorded as an increase to the long-term debt carrying value, is being amortized to interest expense over the remaining term of the debt. See Note 1 for information regarding our Tender Offer.

In June 2005, we issued $250 million of unsecured senior notes. These notes bear interest at the rate of 5.375% per annum, payable semi-annually on June 15 and December 15. The notes mature on June 15, 2015. We have the option to redeem some or all of the notes at any time with not less than 30 days' notice at a redemption price equal to the greater of the principal amount of the notes or the sum of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed.

Both the notes issued in February 2003 and the notes issued in June 2005 have covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates, modification of the covenants and the Company maintaining its office or agency and existence. Additionally, these indentures include covenants restricting the Company from encumbering the capital stock of a designated subsidiary (as defined in the respective indentures for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or the Company retains more than 80% of the stock with ordinary voting rights.

In November 2010, we issued $450 million principal amount of 3.00% convertible, unsecured senior notes due November 15, 2017 (the “2017 Convertible Senior Notes”) and received net proceeds of $391.3 million. Interest is payable semi-annually on May 15 and November 15 of each year. These notes also have standard covenants related to the payments of the notes, reports, compliance certificates, modification of the covenants and the Company maintaining its corporate existence.

Holders of these notes may convert their notes from August 15, 2017, through the maturity date (the "Conversion Period"), subject to certain conditions. Upon a conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in respect of the remainder, if any, of our conversion obligation that is in excess of the aggregate principal amount of the notes being converted. The conversion rate will initially be 85.5688 shares of our common stock per $1,000 principal amount of notes (corresponding to an initial conversion price of approximately $11.69 per share of common stock). The conversion rate will be subject to adjustment in certain events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events, we will increase the conversion rate for a holder who elects to convert their notes in connection with that corporate event in certain circumstances.

Holders of the notes will be able to exercise their conversion rights prior to the Conversion Period, subject to certain conditions, only under the following circumstances:

1. During any calendar quarter after December 31, 2010 (and only during such calendar quarter), if the last reported sale price of our common stock for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, is greater than or equal to 130% of the applicable conversion price on each applicable trading day;

2. During the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the notes (for each trading day during that measurement period) was less than 98% of the product of the last reported sale price of the common stock and the applicable conversion rate on such trading day; or

3. Upon the occurrence of specified corporate events as described in the indenture for the notes.

This transaction is accounted for under the accounting standard for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) and specifies that issuers of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) should separately account for the liability and equity components in a manner that reflects the entity's nonconvertible debt borrowing rate when the interest cost is recognized in subsequent periods. Our convertible notes fall within the scope of this standard due to our ability to elect to repay the convertible notes in cash.

We have determined that the embedded conversion option in the convertible notes is not required to be separately accounted for as a derivative under the accounting standard for derivatives and hedging. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated equity component. The carrying amount of the equity component, representing the embedded conversion option, was determined by deducting the fair value of the liability component from the initial proceeds ascribed to the convertible notes as a whole. The excess of the principal amount of the liability component over its carrying amount is amortized as a component of interest expense over the expected life of a similar liability that does not have an associated equity component using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification as prescribed in the accounting standard for derivative financial instruments indexed to, and potentially settled in, an entity's own common stock and the accounting standard for determining whether an instrument (or an embedded feature) is indexed to an entity's own stock.

Issuance and transaction costs incurred at the time of the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. The convertible notes are reflected on our consolidated balance sheets as follows:

	December 31,
(In thousands)	2011			2010
Liability component:
Principal	$	450,000		$	450,000
Less: debt discount, net (1)	(133,502		)	(149,633		)
Net carrying amount	$	316,498		$	300,367
Equity component (net of tax impact) (2)	$	65,679		$	65,701

__________________

(1) Included within long-term debt and is being amortized over the life of the convertible notes.

(2) Included within additional paid-in capital, net of capped call transactions and related issuance costs.

The following table sets forth total interest expense recognized related to the convertible notes for the periods indicated:

	December 31,
	2011			2010
($ in thousands)
Contractual interest expense	$	13,500		$	1,687
Amortization of debt issuance costs	1,039			124
Amortization of debt discount	16,131			1,911
Total interest expense	$	30,670		$	3,722
Effective interest rate of the liability component	9.75		%	9.75		%

In connection with the November 2010 offering of the convertible notes, we also entered into capped call transactions with an affiliate of Morgan Stanley & Co., Incorporated ("Morgan Stanley"), whose obligations have been guaranteed by Morgan Stanley. The capped call transactions are intended to offset the potential dilution to our common stock and/or any potential cash payments that may be required to be made by us upon conversion of the notes in excess of the principal amount of the notes, up to a stock price of approximately $14.11 per share, which is the initial cap on the counterparty's share delivery obligation under the call option. If, however, the market value per share of our common stock, as measured under the terms of the capped call transactions, exceeds the applicable cap price of the capped call transactions, the number of shares of our common stock and/or the amount of cash we expect to receive upon the exercise of the capped call transactions will be capped and the anti-dilutive and/or offsetting effect of the capped call transactions will be limited. We paid approximately $46.1 million from the net proceeds from the issuance and sale of the convertible notes to purchase the capped call transactions.

The premium paid for the capped call transactions is recorded in additional paid-in capital in accordance with the accounting standard for derivative financial instruments indexed to, and potentially settled in, an entity's own common stock, and the accounting standard for determining whether an instrument (or embedded feature) is indexed to an entity's own stock.

As noted above, the indentures for each of the Company's outstanding notes include provisions generally customary for such securities. Furthermore, the indentures for the 2017 Convertible Senior Notes and the 5.625% Senior Notes due 2013 include, among other terms, provisions under which the bankruptcy of the Company or the appointment of a receiver for the Company or for certain of its subsidiaries or other material assets would constitute an event of default under the indenture. Upon such a default, the note holders of the 2017 Convertible Senior Notes and the 5.625% Senior Notes due 2013 could declare the notes due and payable (which may, under certain circumstances, be automatically accelerated), which would constitute an event of default under the indenture for the 5.375% Senior Notes due 2015. As described in Note 1, certain events could cause our applicable insurance regulator to appoint a receiver for our insurance subsidiaries. If this occurred, it would, unless waived by a majority of the note holders, constitute an event of default under the indenture for one or likely both the 2017 Convertible Senior Notes and the 5.625% Senior Notes due 2013, and therefore also cause an event of default under the indenture for the 5.375% Senior Notes due 2015.

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Note 14 - Income Taxes Summary of Income Tax Contingencies Rollforward of Unrecognized Tax Benefits (Details) (USD $)	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of period	$ 92,845,000	$ 143,391,000
Tax positions related to the current year [Abstract]
Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions	1,268,000	2,313,000
Unrecognized Tax Benefits, Decreases Resulting from Current Period Tax Positions	(2,005,000)	0
Tax positions related to prior years [Abstract]
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions	51,480,000	47,020,000
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions	(17,831,000)	(54,874,000)
Unrecognized Tax Benefits, Rollforward Change Due To Change In Judgment	0	(5,331,000)
Unrecognized Tax Benefits, Reductions Resulting from Lapse of Applicable Statute of Limitations	0	(39,674,000)
Balance at end of period	125,757,000	92,845,000
Unrecognized Tax Benefits, Net Amount Related to Prior Period Tax Positions	33,600,000
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Within Twelve Months, Estimated Range of Change, Upper Bound	$ 62,400,000