REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  To the Board of Directors and Stockholders of  Radian Group Inc. In our opinion, the accompanying consolidated balance sheets and related consolidated statements of operations,  comprehensive income (loss), changes in common stockholders’  equity and cash flows present fairly , in all material respects,  the financial position of Radian Group Inc. and its subsidiaries  at December 31, 2012 and 2011, and the results of their  operations, comprehensive income(loss) and their cash flows for each of the three years in the period ended December 31, 2012 in conformity with accounting principles generally accepted in the United States of  America. In addition, in our opinion, the  financial statement schedules listed in Item 15(a)(2) present fairly, in all material respects, the information set forth therein  when read in conjunction with the related consolidatedfinancial statements. Also in our opinion, the Company maintained, in  all material respects, effective internal control over financial reporting as of December 31, 2012, based on criteria established in  Internal Control - Integrated Framework  issued by the Committee of Sponsoring Organizations of the Treadway Commission  (COSO). The Company’s management is responsible for these financial statements and financial statement schedules, for  maintaining effective internal control over financial reporting and for its assessment of the ef fectiveness of internal control over  financial reporting, included in Management’ s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedules, and on the  Company’s internal control over financial reporting based on our integrated audits.  We conducted our audits in accordance with  the standards of the Public Company  Accounting Oversight Board (United States). Those standards require that we plan and  perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and  whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial  statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,  assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial  statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal  control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and  operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other  procedures as we considered necessary in the circumstances.  We believe that our audits provide a reasonable basis for our  opinions. As described in Note 1 to the consolidated financial statements, the Company and its subsidiaries are subject to risks and  uncertainties that could af fect amounts reported in the Company’ s financial statements in future periods.Adverse business and  economic conditions have resulted in incurred losses, which have reduced the Company’ s insurance subsidiaries’ statutory  capital, requiring contributions which have reduced holding company liquidity . Further, statutory capital requirements are  subject to regulatory discretion and approval.  As discussed in Note 2 to the consolidated financial statements, the Company adopted in 2012 a new accounting standard for  deferred acquisition costs. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the  reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally  accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures  that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and  dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit  preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and  expenditures of the company are being made only in accordance with authorizations of management and directors of the  company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or  disposition of the company’s assets that could have a material ef fect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,  projections of any evaluation of ef fectiveness to future periods are subject to the risk that controls may become inadequate  because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/PricewaterhouseCoopers LLP Philadelphia, PA  February 22, 2013  161