Radian Group (RDN) risk factors, 2025 10-K

Risks Related to Regulatory Matters

1. 01Radian Guaranty may fail to maintain its eligibility status with the GSEs, and the additional capital required to support Radian Guaranty’s eligibility could reduce our available liquidity
2. 02PMIERs financial requirements impose limitations on the credit that is granted for certain Available Assets based on several factors, including, among others, asset class and credit rating
3. 03Our insurance subsidiaries are subject to comprehensive state insurance regulations and other requirements, which we may fail to satisfy
4. 04affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business
5. 05Changes in the charters, business practices or role of the GSEs in the U.S. housing finance market generally, could significantly impact our businesses
6. 06the degree of influence that the GSEs have over a mortgage lender’s selection of the mortgage insurer providing coverage
7. 07Legislation and administrative and regulatory changes and interpretations could impact our businesses

Risks Related to our Business Operations

1. 08If the estimates we use in establishing mortgage insurance loss reserves are incorrect, we may be required to take unexpected charges to income, which could adversely affect our results of operations
2. 09As part of our claims management process, we pursue opportunities to mitigate losses both before and after we receive claims, including processes to ensure claims are valid
3. 10We use reinsurance as a capital and risk management tool. We have distributed risk through traditional quota share and excess-of-loss reinsurance arrangements, as well as to investors through the capital markets using mortgage insurance-linked notes transactions
4. 11If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues
5. 12the credit policies of certain lenders, which impact the ability of homeowners to refinance loans; and
6. 13Our delegated underwriting program may subject our Mortgage Insurance business to unanticipated claims
7. 14Our NIW and franchise value could decline if we lose business from significant customers
8. 15Potential downgrades by rating agencies to the current financial strength ratings assigned to Radian Guaranty and/or the credit ratings assigned to Radian Group could adversely affect the Company
9. 16Our Mortgage Insurance business depends, in part, on effective and reliable loan servicing
10. 17level of servicing performance, they also impose a high cost of compliance on servicers that may impact their financial condition and their operating effectiveness
11. 18We face risks associated with our contract underwriting business
12. 19A decrease in the volume of mortgage originations could result in fewer opportunities for us to write new mortgage insurance business
13. 20the practices of the GSEs, including the extent to which the guaranty fees, loan level price adjustments, credit underwriting guidelines and other business terms provided by the GSEs affect the cost of mortgages and lenders’ willingness to extend credit for low down payment mortgages
14. 21Our Title, Real Estate Services and Real Estate Technology businesses expose us to certain risks that may negatively affect our results of operations and financial condition
15. 22We rely upon proprietary technology and information, and if we are unable to protect our intellectual property rights, it could have a material adverse effect on us
16. 23We face risks associated with our Mortgage Conduit business
17. 24omissions. Failure to take steps to ensure that third-party servicers are servicing the loans we acquire appropriately could expose us to penalties or other claims or enforcement actions that could negatively impact our business prospects, results of operations and financial condition
18. 25If the models used in our businesses are inaccurate, it could have a material adverse impact on our business, results of operations and financial condition
19. 26Actual or perceived instability in the financial services industry or non-performance by financial institutions or transactional counterparties could materially impact our business

Risks Related to the Economic Environment

1. 27The credit performance of our mortgage insurance portfolio is impacted by macroeconomic conditions and specific events that affect the ability of borrowers to pay their mortgages
2. 28Our success depends, in part, on our ability to manage risks in our investment portfolio
3. 29Climate change and extreme weather events could adversely affect our businesses, results of operations and financial condition
4. 30Our reported earnings, stockholders’ equity and book value per share are subject to fluctuations based on changes in our investments that require us to adjust their fair market value

Risks Related to Liquidity and Financing

1. 31Our sources of liquidity may be insufficient to fund our obligations
2. 32Capital Resources—Liquidity Analysis—Holding Company” for more information on our available liquidity and short-term and long-term liquidity demands
3. 33Radian Group is a party to a $275 million unsecured revolving credit facility with a syndicate of bank lenders. As of December 31, 2024, no borrowings were outstanding under the credit facility

Risks Related to Information Technology and Cybersecurity

1. 34Our information technology systems may fail or become outmoded, be temporarily interrupted or otherwise cause us to be unable to meet our customers’ demands
2. 35As our work environment has transformed into a hybrid environment, it has further increased our reliance on information technology and our exposure to the risk of cybersecurity threats and data security incidents
3. 36We use statistical models, including artificial intelligence and machine learning models, to assist our decision making in key areas, such as underwriting, claims and pricing, but actual results could differ materially from the model outputs and related analyses

Risks Related to Us and Our Subsidiaries Generally

1. 37We may not continue to pay dividends at the same rate we are currently paying them, or at all, and any decrease in or suspension of payment of a dividend could cause our stock price to decline
2. 38We are subject to litigation and regulatory proceedings
3. 39We rely on our management team and our business could be harmed if we are unable to retain qualified personnel or successfully develop and/or recruit their replacements
4. 40employees. In light of these trends in the current labor and employment environment, it may be more difficult to retain key personnel or to attract new resources
5. 41Investments to grow our existing businesses, pursue new lines of business or develop new products and services within existing lines of business subject us to additional risks and uncertainties
6. 42the risk of reputational harm if the strategic transaction or initiative fails to increase our market value; and