Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) Phantom Stock RSUs (Equity Settled) In the past, 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 (as  defined above). Upon conversion, all phantom stock will be paid in whole shares of our common stock, with fractional shares  paid in cash. At December 31, 2012, there were approximately 4,899 dividend-equivalent phantom shares accrued that were not  included in the total number of our outstanding shares.  The cost recognized for these awards was recognized on a straight-line  basis over the vesting period.  Performance-Based RSUs —In 2010, the Compensation Committee granted to executive of ficers a total of 203,300  performance-based RSUs to be settled in common stock.  No performance-based RSUs (equity settled) were awarded in 2012 or  2011. The performance, vesting conditions and potential payouts relative to tar get 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: Time-Vested RSUs —In 2012, the Compensation Committee granted a total of  558,216 shares of time-vested RSUs to be  settled in common stock, including 7,812 shares awarded to non-executives and 550,404 shares awarded to non-employee  directors. In 2011 and 2010, the Compensation Committee granted a total of  323,866 and 13,000 shares of time-vested RSUs,  respectively, to be settled in common stock. 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 2012  awards to non-executives 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: 2010 Expected life. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 years Risk-free interest rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4% Volatility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154.5% Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.12% Number of Shares Weighted Average Grant Date Fair Value Unvested, December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505,183 $ 8.08 Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 558,216 2.51 Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (62,388 ) 5.53 Forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,130 ) 9.26 Unvested, December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,881 $ 5.09 255