Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) Business Conditions As a seller of credit protection, our results are subject to macroeconomic conditions and specific events that impact the  origination environment and the credit performance of our underlying insured assets.  The most recent downturn in the housing  and related credit markets began in 2007 and had a significant negative impact on the operating environment and results of  operations for each of our businesses.  This period was characterized by a decrease in mortgage originations, a broad 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 macroeconomic factors such as limited economic growth and a lack of  meaningful liquidity in some sectors of the capital markets. Our results of operations continue to be negatively impacted by the  mortgage insurance we wrote during the poor underwriting years of 2005 through 2008 (we refer to this portfolio as our  “legacy portfolio”). In 2012, the operating environment for our businesses improved.  Although the housing market remains weak compared  to historical standards, home prices appear to be appreciating on a broad basis throughout the United States (“U.S.”),  foreclosure activity has decreased and the credit quality of overall mortgage market originations continues to be significantly  better than the credit quality of our legacy portfolio. In addition, there are signs of a more permanent recovery in the U.S.  economy, including importantly, a reduction in unemployment. As a consequence of these and other factors, in 2012 we  experienced improvement in our results of operations, with a  22% decline in new mortgage insurance defaults in 2012 and  further stabilization of credit performance in our financial guaranty portfolio.  Although uncertainty remains with respect to the  ultimate losses we will experience in our legacy portfolio, as we continue to write new , higher quality mortgage insurance, our  legacy portfolio progressively becomes a lesser percentage of our total portfolio.  We anticipate that by the second quarter of  2013, our legacy portfolio will represent less than  50% of our total mortgage insurance portfolio. Currently, our business strategy primarily is focused on: (1) growing our mortgage insurance business by writing high- quality mortgage insurance in the U.S.; (2) continuing to manage losses in our legacy mortgage insurance and financial  guaranty portfolios; (3) continuing to reduce our financial guaranty exposure; and (4) pursuing opportunities for increasing  Radian Group’s available liquidity and for enhancing Radian Guaranty’ s capital position.  Capital Preservation and Liquidity Management Initiatives Since 2008, we have undertaken a number of strategic actions and initiatives in response to the negative economic and  market conditions. As a result of these actions and an improving operating environment, we believe we are better positioned to  return to operating profitability in the future.  These actions include the following: •  We significantly tightened our mortgage insurance underwriting standards to focus primarily on insuring high credit  quality, first-liens originated in the U.S. and we ceased writing mortgage insurance on non-traditional and other  inherently riskier products. •  We expanded our claims management and loss mitigation ef forts 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-of f of our financial guaranty business, the  structure has provided Radian Guaranty with substantial regulatory capital and, through dividends from Radian  Asset  Assurance, has increased liquidity at Radian Guaranty . •  We reduced our legacy mortgage insurance portfolio (direct primary mortgage insurance RIF originated in 2005  through 2008), non-traditional mortgage insurance RIF and our financial guaranty portfolio through a series of risk  commutations, discounted security purchases, transaction settlements and terminations. •  In 2012, we wrote $37.1 billion of primary mortgage insurance. Substantially all of our portfolio of insurance written  since 2008 has been of high credit quality and is expected to generate strong returns. •  Through the expanded eligibility criteria under the most recent Home  Affordable Refinance Program (“HARP”), an  increased number of borrowers have been able to participate in and benefit from the program and, as of December 31,  2012, approximately 9% of our total primary RIF had successfully completed a HARP  refinance. •  We continue to diversify and expand our customer base, adding more than  300 new customers during 2012. New  customers added since 2009 accounted for  32% of the new insurance written (“NIW”) during 2012. 169 During 2012 and to date in 2013, we have continued to execute upon this strategy , including the following: