Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) For GAAP accounting purposes, we evaluated the LPV (a VIE) to determine if we would be considered the primary  beneficiary of the VIE. We have the obligation to absorb the majority of the  VIE’s losses and the right to receive the majority of  any remaining funds through our residual interest agreement. In addition, we have the ability to impact the activities of the  VIE  in certain limited ways that could impact the economic performance of this  VIE. As a result of these obligations and rights, we  have concluded that we are the primary beneficiary of the  VIE. The consolidated assets of the LPV primarily consist of a  guaranteed investment contract that is presented within other invested assets, which would be used to settle any obligations of  this VIE under the Residual CDS. The Residual CDS represents the liability of the  VIE for which the Counterparty does not  have recourse to our general credit for this consolidated liability . The Residual CDS held by the LPV is carried at fair value and  we have also elected to carry the investments at fair value.  Prior to the CDO Commutation Transactions, we consolidated the assets and liabilities associated with the CDO of  ABS  transaction. Due to provisions in our financial guaranty contracts that allowed us to direct the collateral manager to sell the  underlying assets of this transaction, we concluded that we had the power to direct the activities that most significantly impact  the economic performance of this  VIE. In addition, as the guarantor of certain classes of debt issued by this  VIE, we had the  obligation to absorb losses that are significant to this  VIE. The consolidated assets of this CDO of  ABS VIE were accounted for  as trading securities and represented assets to be used to settle the obligation of this  VIE. While the assets of this VIE could  only be used to settle the obligations of the  VIE, due to our guarantee, the creditors had recourse to our general credit for this  consolidated VIE debt. This transaction was commuted in the second quarter of 2012 and as a result, the assets and liabilities  were unconsolidated. During the second quarter of 2012, in connection with the commutation of certain of our insured  TruPs  CDO transactions, a new VIE was formed, which we consolidated as a result of our ongoing involvement with the entity ,  including our ability to impact the activities of the  VIE in certain limited ways that could impact its economic performance.  As  of December 31, 2012, we have determined that we are the primary beneficiary of our NIMS transactions and certain financial  guaranty structured transactions. Our control rights in these  VIEs, which we obtained due to an event of default or breach of a  performance trigger as defined in the transaction, generally provide us with either a right to replace the  VIE servicer or, in some  cases, the right to direct the sale of the  VIE assets. In those instances where we have determined that we are the primary  beneficiary, we consolidate the assets and liabilities of the  VIE. We have elected to carry the financial assets and financial  liabilities of these VIEs at fair value. We also consolidate the assets and liabilities associated with two other financial guaranty transactions. In these  transactions, we provide guarantees for  VIEs that own manufactured housing loans. Prior to their consolidation, these  transactions had been accounted for as insurance contracts. Due to the contractual provisions that allow us to replace and  appoint the servicer who manages the collateral underlying the assets of the transactions, we concluded that we have the power  to direct the activities of these VIEs. In addition, as the guarantor of certain classes of debt issued by these  VIEs, we have the  obligation to absorb losses that could be significant to these  VIEs. The assets of these VIEs may only be used to settle the  obligations of the VIEs, while due to the nature of our guarantees, creditors have recourse to our general credit as it relates to  the VIE debt. However, due to the seniority of the bonds we insure in these transactions, we do not expect to incur a loss from  our involvement with these two VIEs; as such, we did not have a net liability recorded for these transactions as of  December 31, 2012. 210