In order to maximize our financial flexibility in the event Radian Guaranty is 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 an application for 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 or a renewal of the waivers that have expired in Illinois, New Jersey and Florida; (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 requirements. In addition to filing for waivers in the RBC States, if necessary , we intend to write new first-lien insurance business in  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 has approved RMAI 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.  The Fannie Mae  Approval expires on December 31, 2013. Freddie Mac also has approved RMAI as a limited mortgage insurer to write business  in those RBC States for which we are unable to obtain a waiver . 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. 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. Under the GSE Approvals, Radian Group is 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 Freddie Mac Approval also includes a  condition specifying the time frame by which Radian Guaranty will evaluate and resolve claims.  There can be no assurance  that: (1) we will be able to comply with the conditions imposed by the GSE  Approvals; (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 expiration dates; or (4) additional requirements will not be imposed as a condition to such on-going  approvals, including their renewal or extension.  The GSE Approvals are limited to the RBC States. It is 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 RMAI to write business in states other than the  RBC States. Our existing capital resources may not be suf ficient to successfully manage Radian Guaranty’ s capital position. Our  ability to utilize waivers and RMAI to continue to write business if Radian Guaranty’ s capital position 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 or other risk-to-capital support or relief could be necessary , which  we may not have the ability to provide. Further, regardless of the waivers and the GSE Approvals of RMAI, we may choose to  use our existing capital at Radian Group to maintain compliance with the Statutory RBC Requirements, including for periods  after 2013. 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 RMAI, our financial flexibility would be significantly reduced, making it more dif ficult for Radian Group to meet  its obligations in the future, including future principal payments on our outstanding debt. 61