INDEPENDENT AUDITORS’ REPORT REPORT ON MANAGEMENT’S RESPONSIBILITY Board of Directors and Stockholders Radian Group Inc. Philadelphia, Pennsylvania Management is responsible for the preparation, integrity and objectivity of the consolidated financial statements and other financial information presented in this annual report. The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, applying certain estimations and judgments as required. The Company’s internal controls are designed to provide reasonable assurance as to  the integrity and reliability of the financial statements and to adequately safeguard, verify and maintain accountability of assets. Such controls are based on established written policies and procedures and are implemented by trained, skilled personnel with an appropriate segregation of duties. These policies and procedures prescribe that the Company and all its employees are to maintain the highest ethical standards and that its business practices are to be conducted  in a manner that is above reproach. Deloitte & Touche LLP, independent accountants, is retained to audit the company’s financial statements. Their accompanying report is based on audits conducted in accordance  with auditing standards generally accepted in the United States of America, which include the consideration of the company’s internal controls to establish a basis for reliance thereon in determining the nature, timing and extent of audit tests to be applied. The board of directors exercises its responsibility for these financial statements through its Audit Committee, which consists entirely of independent non-management board members. The Audit Committee meets periodically with the independent accountants, both privately and with management present, to review accounting, auditing, internal controls and financial reporting matters. We have audited the consolidated balance sheets of Radian Group Inc. and subsidiaries (the “Company”) as of December 31, 2001 and 2000, and the related consolidated statements of income, changes in common stockholders’ equity, and cash flows for each of the three  years in the period ended December 31, 2001. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable  basis for our opinion. In our opinion, based on our audits, the consolidated financial statements referred  to above present fairly, in all material respects, the financial position of Radian Group Inc.  and subsidiaries at December 31, 2001 and 2000, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2001 in conformity with accounting principles generally accepted in the United States of America. >38 Deloitte & Touche LLP Philadelphia, Pennsylvania March 15, 2002 Frank P. Filipps Chairman and Chief Executive Officer C. Robert Quint Executive Vice President and Chief Financial Officer John J. Calamari Vice President and Corporate Controller