Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) In order to maximize our financial flexibility in the event we are unable to comply with applicable Statutory RBC  Requirements, 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, we have a waiver pending in Idaho, and Oregon has indicated that it will not consider  a waiver application until such time that Radian Guaranty has exceeded its Statutory RBC Requirement. Currently , Radian  Guaranty has waivers or similar relief from the following RBC States: Kentucky , Wisconsin, Arizona, Missouri, North  Carolina, California and Texas. Waivers that were previously granted to Radian Guaranty from Illinois, New Jersey and Florida  expired at the end of 2012 and we currently are pursuing a renewal of the waivers from these states. Certain of the existing  waivers contain conditions, including requirements that Radian Guaranty’ s risk-to-capital ratio may not exceed a revised  maximum ratio, ranging from  30 to 1 up to 35 to 1. There can be no assurance that: (1) Radian Guaranty will be granted a  waiver in Idaho or Oregon, the two remaining RBC States, or a renewal of the waivers that have expired in Illinois, New Jersey  and Florida will be received; (2) 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) for any waiver granted, it will be renewed or extended after its  original expiration date; or (4) additional requirements will not be imposed as a condition to such waivers or their renewal or  extension and, if so, whether we will be able to comply with such conditions. In addition to filing for waivers in the RBC States, we intend, if necessary , to write new first-lien insurance business in  Radian Mortgage Assurance Inc. (“RMAI”) 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. RMAI is a wholly-owned subsidiary of  Radian Guaranty and is licensed to write mortgage insurance in each of the fifty states and the District of Columbia.  Fannie Mae and Freddie Mac have approved RMAI as a limited mortgage insurer to write business in those RBC States  for which we have been denied a waiver (the “GSE  Approvals”). The Fannie Mae Approval expires on December 31, 2013. On  December 20, 2012, Freddie Mac amended its approval to extend it for an additional one-year period that will expire on  December 31, 2013 (as amended, the “Freddie Mac Approval”). Pursuant to the Freddie Mac Approval, RMAI currently is  eligible to write business in New York, Ohio, Iowa, Kansas and, subject to certain conditions, Oregon and Idaho.  The GSE 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 to  1 for RMAI, restrictions on the payment of dividends and restrictions on af filiate transactions involving Radian Guaranty or  RMAI. See “Risks and Uncertainties” below in this Note 1. Under the GSE  Approvals, Radian Group would also be required to  contribute $50 million of additional capital to Radian Guaranty (which would then be contributed to RMAI), if Radian  Guaranty exceeds a 25 to 1 risk-to-capital ratio, or if it fails to satisfy an MPP  requirement in a state where it has not obtained a  waiver or other similar relief. The conditions and restrictions contained in the Freddie Mac  Approval include, among others, a  condition specifying the time frame by which Radian Guaranty will evaluate and resolve claims and a requirement that Radian  Group make contributions to Radian Guaranty so that Radian Guaranty maintains minimum “Liquid  Assets” of $700 million.  As defined in the Freddie Mac Approval, “Liquid Assets” are equal to the sum of: (i) aggregate cash and cash equivalents; and  (ii) the fair market value of the following investments: (a) residential mortgage-backed securities (“RMBS”) guaranteed by  Fannie Mae, Freddie Mac or Government National Mortgage  Association; (b) securities rated single A or higher by either  Moody’s Investor Service, Standard & Poor’s Financial Services LLC (“S&P”) or Fitch Ratings 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 may not exceed  10 percent of the Liquid Assets. As of December 31, 2012,  Radian Guaranty’s Liquid Assets under the Freddie Mac Approval were approximately $868.9 million. Radian Guaranty  maintains significant additional liquid investments that may be converted into Liquid  Assets to ensure ongoing compliance with  the Freddie Mac Approval. There can be no assurance that: (1) we will be able to comply with the conditions imposed by the  GSE Approvals for RMAI; (2) the GSEs will not revoke or terminate their approvals, which they generally have the authority  to do at any time; (3) the GSE Approvals will be renewed or extended after their original expiration dates; or (4) additional  requirements will not be imposed as a condition to such on-going approvals, including their renewal or extension. 173