# Radian Group Inc: Form 10-Q for the period ended Jun 30, 2025

- Company: [Radian Group Inc](/companies/rdn.md) (CIK 890926)
- Form: 10-Q
- Filed: 2025-08-01
- Accepted by EDGAR: Aug 1, 2025, 16:15 ET
- Period: 2025-06-30
- Accession: 0000950170-25-101425
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/890926/000095017025101425/rdn-20250630.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/890926/000095017025101425/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-06-30.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-04-01 to 2025-06-30 | $318.0m | us-gaap:Revenues |
| Revenue | 6 months, 2025-01-01 to 2025-06-30 | $636.1m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2025-04-01 to 2025-06-30 | $8.4m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-01-01 to 2025-06-30 | $17.2m | us-gaap:CostOfGoodsAndServicesSold |
| Interest expense | 3 months, 2025-04-01 to 2025-06-30 | $25.9m | us-gaap:InterestExpense |
| Interest expense | 6 months, 2025-01-01 to 2025-06-30 | $48.4m | us-gaap:InterestExpense |
| Income tax | 3 months, 2025-04-01 to 2025-06-30 | $33.2m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-01-01 to 2025-06-30 | $77.1m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-04-01 to 2025-06-30 | $141.8m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-01-01 to 2025-06-30 | $286.4m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-04-01 to 2025-06-30 | $1.02 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-01-01 to 2025-06-30 | $2.00 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-04-01 to 2025-06-30 | $1.03 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-01-01 to 2025-06-30 | $2.02 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-04-01 to 2025-06-30 | 138,360,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-01-01 to 2025-06-30 | 143,012,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-01-01 to 2025-06-30 | −$645.5m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-01-01 to 2025-06-30 | $2.5m | us-gaap:PaymentsToAcquireProductiveAssets |
| Dividends paid | 6 months, 2025-01-01 to 2025-06-30 | $75.9m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 6 months, 2025-01-01 to 2025-06-30 | $431.9m | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-06-30 | $22.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | at 2025-06-30 | $9.58bn | us-gaap:Assets |
| Total liabilities | at 2025-06-30 | $5.09bn | us-gaap:Liabilities |
| Shareholders' equity | at 2025-06-30 | $4.49bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 76,313 characters.

The disclosures in this quarterly report are complementary to those made in our 2024 Form 10-K and should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in this report, as well as our audited financial statements, notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Form 10-K.

The following analysis of our financial condition and results of operations for the three and six months ended June 30, 2025, provides information that evaluates our financial condition as of June 30, 2025, compared with December 31, 2024, and our results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024.

Investors should review the “Cautionary Note Regarding Forward-Looking Statements—Safe Harbor Provisions” and “Item 1A. Risk Factors” herein and in our 2024 Form 10-K for a discussion of those risks and uncertainties that have the potential to adversely affect our business, financial condition, results of operations, cash flows or prospects. Our results of operations for interim periods are not necessarily indicative of results to be expected for the full year or for any other period. See “Overview of Business Operating Environment” below and Note 1 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

| INDEX TO ITEM 2 | Page |
| --- | ---: |
| Overview of Business Operating Environment | 46 |
| Key Factors Affecting Our Results | 47 |
| Mortgage Insurance Portfolio Metrics | 47 |
| Results of Operations—Consolidated | 51 |
| Results of Operations—Mortgage Insurance | 56 |
| Results of Operations—All Other | 62 |
| Liquidity and Capital Resources | 62 |
| Critical Accounting Estimates | 67 |

### Overview of Business Operating Environment

We are a mortgage and real estate company with one reportable business segment—Mortgage Insurance.

Our Mortgage Insurance segment aggregates, manages and distributes U.S. mortgage credit risk for the benefit of mortgage lending institutions and mortgage credit investors, principally through private mortgage insurance on residential first-lien mortgage loans.

Our other immaterial businesses are reported collectively as All Other and consist of our Mortgage Conduit, Title, Real Estate Services and Real Estate Technology businesses, which provide our existing and new customers with an array of products and services across the residential real estate and mortgage finance industries.

As a mortgage and real estate company, our business results are subject to seasonal fluctuations impacting mortgage and real estate markets as well as macroeconomic conditions and specific events that impact the housing, housing finance and residential real estate markets and the credit performance of our mortgage insurance portfolio. Among others, these factors may include home prices and housing supply, inflationary pressures, the interest rate environment and the risk of recession, unemployment levels, the volume of mortgage originations and the availability of credit, national and regional economic conditions, legislative and regulatory developments and responses thereto, as well as other events, including macroeconomic stresses and uncertainties and other political and geopolitical events and global conflicts.

In addition, as discussed in “Item 1A. Risk Factors” herein, the impact of the recent actions of the current presidential administration on, among other things, the macroeconomic environment and regulatory policies could exacerbate the risks and uncertainties set forth in “Item 1A. Risk Factors” in our 2024 Form 10-K and could negatively impact our businesses and financial results. See also “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our 2024 Form 10-K for additional discussion of the primary factors affecting the current operating environment for our businesses.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Despite risks and uncertainties, we believe that mortgage industry fundamentals remain strong, including as a result of the improvements to the mortgage and real estate ecosystem since the great financial crisis in 2008, such as more stringent underwriting and product standards, higher-quality borrowers with strong credit profiles and strengthened mortgage loan servicing and government support to help borrowers stay in their homes. Consistent with the trends observed in recent periods, the economic and market conditions impacting our results for the three and six months ended June 30, 2025, remained generally favorable.

### Legislative and Regulatory Developments

We are subject to comprehensive regulation by both federal and state regulatory authorities. For a description of significant state and federal regulations and other requirements of the GSEs that are applicable to our businesses, as well as legislative and regulatory developments affecting the housing finance industry, see “Item 1. Business—Regulation” in our 2024 Form 10-K. There were no significant regulatory developments impacting our businesses from those discussed in our 2024 Form 10-K, other than the following.

***Credit Score Models.*** In October 2022, the FHFA announced that as part of a multi-year effort, the GSEs intended to replace their use of Classic FICO credit scores with FICO 10T and VantageScore 4.0 credit scores, which are intended to improve accuracy by capturing additional payment histories for borrowers when available, such as rent, utilities, and telecom payments. On July 8, 2025, FHFA announced that the GSEs will allow lenders to use a credit score generated by either the Classic FICO model or the VantageScore 4.0 model. As a mortgage insurer, Radian Guaranty uses credit scores in several areas of its operations and adoption of the new credit scores requires planning and analysis to, among other things, understand how these scores calibrate to Radian Guaranty’s credit risk models. The Company is evaluating the impact of this most recent announcement, and while we expect the operational impacts could be significant, we do not expect it to have a material impact on our results of operations or financial condition.

***Mortgage Insurance Income Tax Deduction for Borrowers.*** The One Big Beautiful Bill Act (the “Act”), which became effective July 4, 2025, makes permanent an income tax deduction for mortgage insurance premiums paid by borrowers, including private mortgage insurance premiums, and makes that deduction effective beginning in 2026. The mortgage insurance tax deduction in the Act reinstates a deduction for taxpayers that had previously been in effect from 2007 through 2021, and which is expected to help support affordable homeownership by reducing costs for eligible low down payment borrowers.

### Key Factors Affecting Our Results

The key factors affecting our results are discussed in our 2024 Form 10-K. There have been no material changes to these key factors.

### Mortgage Insurance Portfolio Metrics

### New Insurance Written

We wrote $14.3 billion and $23.8 billion of primary new mortgage insurance in the three and six months ended June 30, 2025, respectively, compared to $13.9 billion and $25.4 billion of NIW in the three and six months ended June 30, 2024, respectively, representing an increase of 3% for the three months ended June 30, 2025, and a decrease of 6% for the six months ended June 30, 2025, each as compared to the same period in 2024.

According to industry estimates, mortgage origination volume for home purchases, for which private mortgage insurance has a significantly higher penetration rate than for mortgage refinances and therefore typically drives our NIW, increased slightly for the three months ended June 30, 2025, as compared to the same period in 2024, contributing to the increase in NIW in the second quarter of 2025. However, a flat purchase origination market in the first quarter of 2025, combined with our lower market share of the total private mortgage insurance volume in that quarter, as compared to an elevated market share level in the first quarter of 2024, contributed to a lower NIW for the six months ended June 30, 2025, as compared to the same period in 2024.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table provides selected information for the periods indicated related to our mortgage insurance NIW. For direct Single Premium Policies, NIW includes policies written on an individual basis (as each loan is originated) and on an aggregated basis (in which each individual loan in a group of loans is insured in a single transaction, typically after the loans have been originated).

*($ in millions)*

| NIW | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| NIW | $14,330 | $13,902 | $23,819 | $25,404 |
| Primary risk written | $3,771 | $3,541 | $6,226 | $6,507 |
| Average coverage percentage | 26.3% | 25.5% | 26.1% | 25.6% |
| NIW by loan purpose |  |  |  |  |
| Purchases | 94.6% | 98.3% | 95.0% | 97.7% |
| Refinances | 5.4% | 1.7% | 5.0% | 2.3% |
| NIW by premium type |  |  |  |  |
| Direct Monthly and Other Recurring Premiums | 96.4% | 96.5% | 96.4% | 96.6% |
| Direct single premiums | 3.6% | 3.5% | 3.6% | 3.4% |
| NIW by FICO score (1) |  |  |  |  |
| \>=740 | 68.2% | 69.4% | 68.2% | 68.5% |
| 680-739 | 27.0% | 25.5% | 27.0% | 26.2% |
| 620-679 | 4.8% | 5.1% | 4.8% | 5.3% |
| \<=619 | 0.0% | 0.0% | 0.0% | 0.0% |
| NIW by LTV (2) |  |  |  |  |
| 95.01% and above | 16.7% | 16.5% | 16.3% | 16.0% |
| 90.01% to 95.00% | 44.0% | 37.2% | 43.0% | 38.8% |
| 85.01% to 90.00% | 30.1% | 32.4% | 30.9% | 31.9% |
| 85.00% and below | 9.2% | 13.9% | 9.8% | 13.3% |

(1) For loans with multiple borrowers, the percentage of NIW by FICO score represents the lowest of the borrowers’ FICO scores at origination.

(2) LTV at origination.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

### Insurance and Risk in Force

*($ in billions)*

| Year of origination - IIF By vintage: | IIF as of: June 30, 2025 |  | December 31, 2024 |  | June 30, 2024 |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2025 | $23.4 | 8.5% | $— | —% | $— | —% |
| 2024 | 46.6 | 16.8% | 49.3 | 17.9% | 24.9 | 9.1% |
| 2023 | 42.3 | 15.3% | 45.3 | 16.5% | 48.4 | 17.8% |
| 2022 | 50.7 | 18.3% | 54.2 | 19.7% | 57.6 | 21.1% |
| 2021 | 48.1 | 17.4% | 53.5 | 19.4% | 59.5 | 21.8% |
| 2020 | 30.6 | 11.1% | 34.1 | 12.4% | 39.2 | 14.4% |
| 2009 - 2019 | 28.8 | 10.4% | 32.2 | 11.7% | 36.0 | 13.2% |
| 2008 & Prior | 6.2 | 2.2% | 6.5 | 2.4% | 7.2 | 2.6% |
| Total | $276.7 | 100.0% | $275.1 | 100.0% | $272.8 | 100.0% |

The primary driver of the future premiums that we expect to earn over time is our IIF, which increases as a result of our NIW and decreases as a result of policy cancellations and amortization.

Historically, there is a close correlation between interest rates and Persistency Rates. Higher interest rate environments generally decrease refinancings, which decreases the cancellation rate of our insurance and positively affects our Persistency Rates. As shown in the table below, our 12-month Persistency Rate at June 30, 2025, was relatively flat as compared to June 30, 2024.

As of June 30, 2025, 63% of our IIF had a mortgage note interest rate of 6.0% or less, which remains below the current prevailing mortgage interest rates based on reported industry averages. If mortgage rates were to decrease, however, refinance volumes could increase, which could have a negative impact on our Persistency Rate and the size of our IIF portfolio. See “*If the length of time that our mortgage insurance policies remain in force declines, it could result in a decrease in our future revenues”* under “Item 1A. Risk Factors” in our 2024 Form 10-K for more information.

The following table provides selected information as of and for the periods indicated related to mortgage insurance IIF and RIF. Throughout this report, unless otherwise noted, RIF is presented on a gross basis and includes the amount ceded under reinsurance. RIF and IIF for direct Single Premium Policies include policies written on an individual basis (as each loan is originated) and on an aggregated basis (in which each individual loan in a group of loans is insured in a single transaction, typically after the loans have been originated).

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

*($ in millions)*

| IIF and RIF | June 30, 2025 | December 31, 2024 | June 30, 2024 |
| --- | ---: | ---: | ---: |
| Primary IIF | $276,745 | $275,126 | $272,827 |
| Primary RIF | $72,820 | $72,074 | $71,109 |
| Average coverage percentage | 26.3% | 26.2% | 26.1% |
| Persistency Rate (12 months ended) | 83.8% | 83.6% | 84.3% |
| Persistency Rate (quarterly, annualized) (1) | 83.8% | 82.7% | 83.5% |
| Primary RIF by premium type |  |  |  |
| Direct Monthly and Other Recurring Premiums | 90.3% | 90.0% | 89.5% |
| Direct single premiums | 9.7% | 10.0% | 10.5% |
| Primary RIF by FICO score (2) |  |  |  |
| \>=740 | 60.6% | 60.1% | 59.2% |
| 680-739 | 32.2% | 32.6% | 33.3% |
| 620-679 | 6.9% | 7.0% | 7.2% |
| \<=619 | 0.3% | 0.3% | 0.3% |
| Primary RIF by LTV (3) |  |  |  |
| 95.01% and above | 20.2% | 19.8% | 19.2% |
| 90.01% to 95.00% | 48.0% | 47.9% | 48.1% |
| 85.01% to 90.00% | 27.1% | 27.3% | 27.3% |
| 85.00% and below | 4.7% | 5.0% | 5.4% |

(1) The Persistency Rate on a quarterly, annualized basis is calculated based on loan-level detail for the quarter ending as of the date shown. It may be impacted by seasonality or other factors, including the level of refinance activity during the applicable periods, and may not be indicative of full-year trends.

(2) For loans with multiple borrowers, the percentage of primary RIF by FICO score represents the lowest of the borrowers’ FICO scores at origination.

(3) LTV at origination.

### Risk Distribution

We use third-party reinsurance in our Mortgage Insurance business as part of our risk distribution strategy, including to manage our capital position and risk profile.

The impact of these programs on our financial results will vary depending on the level of ceded RIF, as well as the levels of prepayments and incurred losses on the reinsured portfolios, among other factors. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Results—Mortgage Insurance—Risk Distribution” in our 2024 Form 10-K and Note 8 of Notes to Unaudited Condensed Consolidated Financial Statements in this report for more information about our reinsurance transactions.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table provides information about the amounts by which Radian Guaranty’s reinsurance programs reduce its Minimum Required Assets.

*($ in thousands)*

| PMIERs benefit from risk distribution PMIERs impact - reduction in Minimum Required Assets XOL Program | June 30, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Mortgage insurance-linked notes program | $460,257 | $558,939 |
| Traditional reinsurance agreement | 132,485 | 160,742 |
| Total XOL Program | 592,742 | 719,681 |
| Other QSR Agreements (1) | 634,464 | 572,229 |
| Single Premium QSR Program | 163,744 | 172,968 |
| Total PMIERs impact | $1,390,950 | $1,464,878 |
| Percentage of gross Minimum Required Assets | 25.9% | 27.4% |

(1) Consists primarily of the 2022, 2023 and 2024 QSR Agreements, which include both single and monthly premium policies.

See “Results of Operations—Mortgage Insurance—Revenues—*Net Premiums Earned”* for information about the impact on premiums earned from each of Radian Guaranty’s reinsurance programs.

### Results of Operations—Consolidated

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. Our consolidated operating results for the three and six months ended June 30, 2025 and 2024, primarily reflect the financial results and performance of our Mortgage Insurance business. See “Results of Operations—Mortgage Insurance” for the operating results of this business segment for the three and six months ended June 30, 2025, compared to the same periods in 2024.

In addition to the results of our operating segments, pretax income (loss) is also affected by those factors described in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Results” in our 2024 Form 10-K.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table summarizes our consolidated results of operations for the periods indicated.

*($ in thousands, except per-share amounts)*

| Summary results of operations - Consolidated Revenues | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Net premiums earned | $237,520 | $237,731 | $(211) | $474,199 | $473,588 | $611 |
| Services revenue | 10,924 | 13,265 | (2,341) | 23,040 | 25,853 | (2,813) |
| Net investment income | 72,769 | 73,766 | (997) | 141,343 | 142,987 | (1,644) |
| Net gains (losses) on investments and other financial instruments | (4,852) | (4,487) | (365) | (5,575) | (3,997) | (1,578) |
| Income (loss) on consolidated VIEs | 185 | — | 185 | 613 | — | 613 |
| Other income | 1,458 | 872 | 586 | 2,498 | 2,134 | 364 |
| Total revenues | 318,004 | 321,147 | (3,143) | 636,118 | 640,565 | (4,447) |
| **Expenses** |  |  |  |  |  |  |
| Provision for losses | 12,097 | (1,745) | (13,842) | 27,264 | (8,779) | (36,043) |
| Policy acquisition costs | 7,205 | 6,522 | (683) | 13,593 | 13,316 | (277) |
| Cost of services | 8,418 | 9,535 | 1,117 | 17,189 | 18,862 | 1,673 |
| Other operating expenses | 89,397 | 91,648 | 2,251 | 166,246 | 174,284 | 8,038 |
| Interest expense | 25,874 | 27,064 | 1,190 | 48,373 | 56,110 | 7,737 |
| Total expenses | 142,991 | 133,024 | (9,967) | 272,665 | 253,793 | (18,872) |
| Pretax income | 175,013 | 188,123 | (13,110) | 363,453 | 386,772 | (23,319) |
| Income tax provision | 33,217 | 36,220 | 3,003 | 77,099 | 82,515 | 5,416 |
| Net income | $141,796 | $151,903 | $(10,107) | $286,354 | $304,257 | $(17,903) |
| Diluted net income per share | $1.02 | $0.98 | $0.04 | $2.00 | $1.96 | $0.04 |
| Weighted average common shares outstanding—diluted | 138,360 | 154,399 | 16,039 | 143,012 | 155,271 | 12,259 |
| Return on equity | 12.5% | 13.6% | (1.1)% | 12.6% | 13.7% | (1.1)% |
| **Non-GAAP Financial Measures (1)** |  |  |  |  |  |  |
| Adjusted pretax operating income | $173,161 | $192,683 | $(19,522) | $363,995 | $395,500 | $(31,505) |
| Adjusted diluted net operating income per share | $1.01 | $1.01 | $— | $2.01 | $2.00 | $0.01 |
| Adjusted net operating return on equity | 12.4% | 13.9% | (1.5)% | 12.6% | 14.0% | (1.4)% |

(1) See “Use of Non-GAAP Financial Measures” below.

### Revenues

***Net Premiums Earned.*** See “Results of Operations—Mortgage Insurance—Revenues—*Net Premiums Earned”* for more information.

***Services Revenue.*** See Note 4 of Notes to Unaudited Condensed Consolidated Financial Statements for a disaggregation of services revenue by revenue type.

***Net Investment Income.*** See Note 6 of Notes to Unaudited Condensed Consolidated Financial Statements for comparative detail about net investment income. See “Results of Operations—Mortgage Insurance—Revenues—*Net Investment Income”* and “Results of Operations—All Other” for more information.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

***Net Gains (Losses) on Investments and Other Financial Instruments.*** See Note 6 of Notes to Unaudited Condensed Consolidated Financial Statements for comparative detail about net gains (losses) on investments and other financial instruments by investment category.

### Expenses

***Provision for Losses.*** The change in the provision for losses for the three and six months ended June 30, 2025, as compared to the same periods in 2024, is primarily driven by a reduction in favorable development on prior period defaults, which impacted our mortgage insurance reserves. See “Results of Operations—Mortgage Insurance—Expenses—*Provision for Losses”* for more information.

***Other Operating Expenses.*** Other operating expenses decreased for the three and six months ended June 30, 2025, as compared to the same periods in 2024, primarily driven by the impact of expense reduction initiatives for certain of the businesses that comprise All Other activities. For additional information, see “Results of Operations—Mortgage Insurance—Expenses—*Other Operating Expenses”* and “Results of Operations—All Other.”

***Interest Expense.*** The decrease in interest expense for the three and six months ended June 30, 2025, as compared to the same periods in 2024, is primarily due to a decline in senior notes outstanding. This decrease in both periods was partially offset by an increase in secured borrowings under our mortgage loan financing facilities. The six months ended June 30, 2024, also included a $4 million loss on extinguishment of debt related to the redemption of senior notes in March of 2024. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional detail about our interest expense.

### Income Tax Provision

Our provision for income taxes for interim periods is established based on our estimated annual effective tax rate for a given year and reflects the impact of discrete tax effects in the period in which they occur.

Our effective tax rate for the three and six months ended June 30, 2025, was 19.0% and 21.2%, respectively, as compared to 19.3% and 21.3% for the three and six months ended June 30, 2024, respectively. For the three and six months ended June 30, 2025 and 2024, the effects of non-deductible executive compensation expense, state income taxes and the vesting of RSUs were the primary drivers of the difference in our effective tax rate compared to the federal statutory rate.

### Use of Non-GAAP Financial Measures

In addition to traditional GAAP financial measures, we have presented “adjusted pretax operating income (loss),” “adjusted diluted net operating income (loss) per share” and “adjusted net operating return on equity,” which are non-GAAP financial measures for the consolidated company, among our key performance indicators to evaluate our fundamental financial performance. These non-GAAP financial measures align with the way our business performance is evaluated by both management and by our board of directors. These measures have been established in order to increase transparency for the purposes of evaluating our operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are non-GAAP financial measures, for the reasons discussed above we believe these measures aid in understanding the underlying performance of our operations.

Total adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity are not measures of overall profitability, and therefore should not be considered in isolation or viewed as substitutes for GAAP pretax income (loss), diluted net income (loss) per share or return on equity. Our definitions of adjusted pretax operating income (loss), adjusted diluted net operating income (loss) per share and adjusted net operating return on equity, as discussed and reconciled below to the most comparable respective GAAP measures, may not be comparable to similarly named measures reported by other companies.

Beginning with the first quarter of 2025, when calculating adjusted diluted net operating income per share and adjusted net operating return on equity, the Company no longer adjusts for the difference between the Company’s statutory and effective tax rates to calculate those non-GAAP financial measures using the Company’s federal statutory tax rate of 21%. The impact of this incremental adjustment for the difference between the Company’s statutory and effective tax rates has been immaterial in recent periods because the number and magnitude of non-recurring fluctuations in the Company’s effective tax rate have declined in recent years. As such, the Company believes that this incremental adjustment for the difference between the two rates is no longer meaningful to users of our financial statements. We have reflected this change in our calculations of

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

adjusted diluted net operating income per share and adjusted net operating return on equity for all periods presented herein. As it relates to the impact of reconciling income (expense) items included in these non-GAAP financial measures, the Company continues to reflect these items on a gross basis and calculates the income tax provision (benefit) on these items using the Company’s federal statutory tax rate of 21%.

Our senior management, including our Chief Executive Officer (Radian’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of the Company’s business segments and to allocate resources to the segments. For detailed information regarding items excluded from adjusted pretax operating income (loss) and the reasons for their treatment, see Note 4 of Notes to Consolidated Financial Statements and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Consolidated—Use of Non-GAAP Financial Measures,” each in our 2024 Form 10-K.

Adjusted pretax operating income (loss) is defined as GAAP consolidated pretax income (loss) excluding the effects of: (i) net gains (losses) on investments and other financial instruments, except for those investments and other financial instruments attributable to our Mortgage Conduit business and (ii) impairment of other long-lived assets and other non-operating items, if any, such as gains (losses) from the sale of lines of business, acquisition-related income (expenses) and gains (losses) on extinguishment of debt, among others.

The following table provides a reconciliation of pretax income to our non-GAAP financial measure of adjusted pretax operating income, both calculated on a consolidated Company basis.

*Reconciliation of consolidated pretax income to adjusted pretax operating income*

*(In thousands)*

|  | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Consolidated pretax income | $175,013 | $188,123 | $363,453 | $386,772 |
| Less: income (expense) items |  |  |  |  |
| Net gains (losses) on investments and other financial instruments (1) | 1,852 | (4,438) | (158) | (4,331) |
| Impairment of other long-lived assets and other non-operating items (2) | — | (122) | (384) | (4,397) |
| Total adjusted pretax operating income (3) | $173,161 | $192,683 | $363,995 | $395,500 |

(1) Excludes net gains (losses) on investments and other financial instruments that are attributable to our Mortgage Conduit business, which are included in adjusted pretax operating income (loss).

(2) The non-operating item for the six months ended June 30, 2024, primarily relates to a loss on extinguishment of debt.

(3) Total adjusted pretax operating income on a consolidated basis consists of adjusted pretax operating income (loss) for our Mortgage Insurance segment and All Other activities, as further detailed in Note 4 of Notes to Unaudited Condensed Consolidated Financial Statements.

Adjusted diluted net operating income (loss) per share is calculated by dividing adjusted pretax operating income (loss), net of taxes computed using the Company’s effective tax rate, by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. As discussed above, for purposes of this non-GAAP financial measure, the income tax provision (benefit) on the reconciling income (expense) items is calculated using the Company’s federal statutory tax rate. The following table provides a reconciliation of diluted net income (loss) per share to our non-GAAP financial measure of adjusted diluted net operating income (loss) per share, both calculated on a consolidated Company basis.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

*Reconciliation of diluted net income per share to adjusted diluted net operating income per share*

|  | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Diluted net income per share | $1.02 | $0.98 | $2.00 | $1.96 |
| Less: per-share impact of reconciling income (expense) items |  |  |  |  |
| Net gains (losses) on investments and other financial instruments | 0.01 | (0.03) | — | (0.03) |
| Impairment of other long-lived assets and other non-operating items | — | — | (0.01) | (0.03) |
| Income tax (provision) benefit on reconciling income (expense) items (1) | — | — | — | 0.02 |
| Per-share impact of reconciling income (expense) items | 0.01 | (0.03) | (0.01) | (0.04) |
| Adjusted diluted net operating income per share | $1.01 | $1.01 | $2.01 | $2.00 |

(1) Calculated using the Company’s federal statutory tax rate of 21%.

Adjusted net operating return on equity is calculated by dividing annualized adjusted pretax operating income (loss), net of taxes computed using the Company’s effective tax rate, by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented. As discussed above, for purposes of this non-GAAP financial measure, the income tax provision (benefit) on the reconciling income (expense) items is calculated using the Company’s federal statutory tax rate. The following table provides a reconciliation of return on equity to our non-GAAP financial measure of adjusted net operating return on equity, both calculated on a consolidated Company basis.

*Reconciliation of return on equity to adjusted net operating return on equity*

|  | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Return on equity (1) | 12.5% | 13.6% | 12.6% | 13.7% |
| Less: impact of reconciling income (expense) items (2) |  |  |  |  |
| Net gains (losses) on investments and other financial instruments | 0.1% | (0.4)% | —% | (0.2)% |
| Impairment of other long-lived assets and other non-operating items | —% | —% | —% | (0.2)% |
| Income tax (provision) benefit on reconciling income (expense) items (3) | —% | 0.1% | —% | 0.1% |
| Impact of reconciling income (expense) items | 0.1% | (0.3)% | —% | (0.3)% |
| Adjusted net operating return on equity | 12.4% | 13.9% | 12.6% | 14.0% |

(1) Calculated by dividing annualized net income by average stockholders’ equity, based on the average of the beginning and ending balances for each period presented.

(2) Annualized, as a percentage of average stockholders’ equity.

(3) Calculated using the Company’s federal statutory tax rate of 21%.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

### Results of Operations—Mortgage Insurance

The following table summarizes our Mortgage Insurance segment’s results of operations for the periods indicated.

*(In thousands)*

| Summary results of operations - Mortgage Insurance Revenues | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Net premiums written | $231,596 | $232,645 | $(1,049) | $461,846 | $464,522 | $(2,676) |
| (Increase) decrease in unearned premiums | 1,930 | 2,173 | (243) | 5,724 | 4,295 | 1,429 |
| Net premiums earned | 233,526 | 234,818 | (1,292) | 467,570 | 468,817 | (1,247) |
| Services revenue | 41 | 309 | (268) | 215 | 519 | (304) |
| Net investment income | 53,288 | 50,102 | 3,186 | 101,739 | 99,676 | 2,063 |
| Other income | 1,461 | 754 | 707 | 3,090 | 1,994 | 1,096 |
| Total revenues | 288,316 | 285,983 | 2,333 | 572,614 | 571,006 | 1,608 |
| **Expenses** |  |  |  |  |  |  |
| Provision for losses | 11,954 | (1,769) | (13,723) | 27,294 | (8,655) | (35,949) |
| Policy acquisition costs | 7,205 | 6,522 | (683) | 13,593 | 13,316 | (277) |
| Cost of services | 5 | 156 | 151 | 103 | 309 | 206 |
| Other operating expenses | 62,202 | 60,354 | (1,848) | 113,892 | 112,133 | (1,759) |
| Interest expense | 17,428 | 21,957 | 4,529 | 33,917 | 45,290 | 11,373 |
| Total expenses | 98,794 | 87,220 | (11,574) | 188,799 | 162,393 | (26,406) |
| Adjusted pretax operating income (1) | $189,522 | $198,763 | $(9,241) | $383,815 | $408,613 | $(24,798) |

(1) Our senior management uses adjusted pretax operating income as our primary measure to evaluate the fundamental financial performance of our business segments. See Note 4 of Notes to Unaudited Condensed Consolidated Financial Statements for more information.

### Revenues

***Net Premiums Earned.*** The following tables provide additional information about the components of mortgage insurance net premiums earned for the periods indicated, including the effects of our reinsurance programs.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

*(In thousands, except as otherwise indicated)*

| Net premiums earned Direct | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Premiums earned, excluding revenue from cancellations | $260,336 | $259,342 | $994 | $521,041 | $517,935 | $3,106 |
| Single Premium Policy cancellations | 1,708 | 2,076 | (368) | 2,914 | 4,190 | (1,276) |
| Direct | 262,044 | 261,418 | 626 | 523,955 | 522,125 | 1,830 |
| Ceded |  |  |  |  |  |  |
| Premiums earned, excluding revenue from cancellations | (43,849) | (39,925) | (3,924) | (86,137) | (78,922) | (7,215) |
| Single Premium Policy cancellations (1) | 1,328 | 732 | 596 | 2,230 | 620 | 1,610 |
| Profit commission—other (2) | 14,003 | 12,593 | 1,410 | 27,522 | 24,994 | 2,528 |
| Ceded premiums, net of profit commission | (28,518) | (26,600) | (1,918) | (56,385) | (53,308) | (3,077) |
| Total net premiums earned | $233,526 | $234,818 | $(1,292) | $467,570 | $468,817 | $(1,247) |
| In force portfolio premium yield (in basis points) (3) | 37.8 | 38.2 | (0.4) | 37.8 | 38.2 | (0.4) |
| Direct premium yield (in basis points) (4) | 38.1 | 38.5 | (0.4) | 38.0 | 38.5 | (0.5) |
| Net premium yield (in basis points) (5) | 33.9 | 34.5 | (0.6) | 33.9 | 34.5 | (0.6) |
| Average primary IIF (in billions) (6) | $275.5 | $271.9 | $3.6 | $275.9 | $271.4 | $4.5 |

(1) Includes the impact of related profit commissions.

(2) Represents the profit commission on the Single Premium QSR Program and 2022, 2023 and 2024 QSR Agreements, excluding the impact of Single Premium Policy cancellations.

(3) Calculated by dividing annualized direct premiums earned, excluding revenue from cancellations, by average primary IIF.

(4) Calculated by dividing annualized direct premiums earned, by average primary IIF.

(5) Calculated by dividing annualized net premiums earned by average primary IIF. The calculation for all periods presented incorporates the impact of profit commission adjustments related to our reinsurance programs.

(6) The average of beginning and ending balances of primary IIF, for each period presented.

The level of mortgage prepayments affects the revenue ultimately produced by our mortgage insurance business and is influenced by the mix of business we write. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Factors Affecting Our Results—Mortgage Insurance—IIF and Related Drivers” in our 2024 Form 10-K for more information.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table provides information related to the impact of our reinsurance transactions on premiums earned. See Note 8 of Notes to Unaudited Condensed Consolidated Financial Statements for more information about our reinsurance programs.

*($ in thousands)*

| Ceded premiums earned XOL Program | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Mortgage insurance-linked notes program | $7,911 | $9,470 | $15,646 | $19,528 |
| Traditional reinsurance agreement | 1,655 | 2,169 | 3,467 | 4,533 |
| Total XOL Program | 9,566 | 11,639 | 19,113 | 24,061 |
| Other QSR Agreements (1) | 16,594 | 12,686 | 32,637 | 24,780 |
| Single Premium QSR Program (2) | 2,358 | 2,275 | 4,635 | 4,467 |
| Total ceded premiums earned (3) | $28,518 | $26,600 | $56,385 | $53,308 |
| Percentage of total direct and assumed premiums earned | 10.9% | 10.2% | 10.8% | 10.2% |

(1) Consists primarily of the 2022, 2023 and 2024 QSR Agreements.

(2) Includes the impact of changes in the profit commission retained by the Company due to changes in loss reserves.

(3) Does not include the benefit from ceding commissions from the reinsurance agreements in our QSR Program, which is primarily included in other operating expenses in our condensed consolidated statements of operations. See Note 8 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

***Net Investment Income.*** The following table provides information related to our Mortgage Insurance subsidiaries’ investment balances and investment yields for the periods indicated.

*Investment balances and yields*

*($ in thousands)*

|  | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Investment income | $55,953 | $52,528 | $3,425 | $107,020 | $104,338 | $2,682 |
| Investment expenses | (2,665) | (2,426) | (239) | (5,281) | (4,662) | (619) |
| Net investment income | $53,288 | $50,102 | $3,186 | $101,739 | $99,676 | $2,063 |
| Average investments (1) | $5,385,552 | $5,454,448 | $(68,896) | $5,391,016 | $5,448,372 | $(57,356) |
| Average investment yield (2) | 4.0% | 3.7% | 0.3% | 3.8% | 3.7% | 0.1% |

(1) For each period presented, reflects the average of the beginning and ending amortized cost for each month of the quarter, based on the investments held by our Mortgage Insurance subsidiaries.

(2) Calculated by dividing annualized net investment income by average investments balance.

Net investment income increased for the three and six months ended June 30, 2025, as compared to the same periods in 2024, primarily driven by higher investment yields, which offset the declines in average investment balances.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

### Expenses

***Provision for Losses.*** The following table details the financial impact of the significant components of our provision for losses for the periods indicated.

*($ in thousands, except reserve per new default)*

| Provision for losses | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Current period defaults (1) | $47,912 | $47,918 | $6 | $103,750 | $100,986 | $(2,764) |
| Prior period defaults (2) | (35,958) | (49,687) | (13,729) | (76,456) | (109,641) | (33,185) |
| Total provision for losses | $11,954 | $(1,769) | $(13,723) | $27,294 | $(8,655) | $(35,949) |
| Loss ratio (3) | 5.1% | (0.8)% | (5.9)% | 11.7% | (1.8)% | (13.5)% |
| Reserve per new default (4) | $4,178 | $4,315 | $137 | $4,328 | $4,418 | $90 |

(1) Related to defaulted loans with the most recent default notice dated in the period indicated. For example, if a loan had defaulted in a prior period, but then subsequently cured and later re-defaulted in the current period, the default would be considered a current period default.

(2) Related to defaulted loans with a default notice dated in a period earlier than the period indicated, which have been continuously in default since that time.

(3) Provision for losses as a percentage of net premiums earned.

(4) Calculated by dividing provision for losses for new defaults, net of reinsurance, by new primary defaults for each period.

As shown in the table below, current period new primary defaults increased by 3% and 5% for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, which is consistent with the natural seasoning of the portfolio given the increase in our IIF in recent years. Our gross Default to Claim Rate assumption for new primary defaults was 7.5% and 8.0% at June 30, 2025 and 2024, respectively, as we continue to closely monitor the trends in Cures and claims paid for our default inventory, while also weighing the risks and uncertainties associated with the current economic environment.

Our provision for losses during the three and six months ended June 30, 2025, and the same periods in 2024, was positively impacted by favorable reserve development on prior period defaults, primarily as a result of more favorable trends in Cures than originally estimated. These Cures have been due primarily to favorable outcomes resulting from positive trends in home price appreciation, which has also contributed to a higher rate of claims that result in no ultimate loss and that are withdrawn by servicers as a result. These favorable observed trends have resulted in reductions in our Default to Claim Rate and other reserve adjustments for prior year default notices, including our Claim Severity assumptions in 2024.

See Note 11 of Notes to Unaudited Condensed Consolidated Financial Statements herein for additional information, as well as Notes 1 and 11 of Notes to Consolidated Financial Statements in our 2024 Form 10-K and “Item 1A. Risk Factors” herein and in our 2024 Form 10-K.

Our primary default rate as a percentage of total insured loans at June 30, 2025, was 2.3% compared to 2.4% at December 31, 2024. The following table shows a rollforward of our primary loans in default.

| Rollforward of primary loans in default | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Beginning default inventory | 22,758 | 20,850 | 24,055 | 22,021 |
| New defaults | 11,467 | 11,104 | 23,972 | 22,860 |
| Cures (1) | (11,754) | (11,472) | (25,394) | (24,280) |
| Claims paid | (175) | (185) | (294) | (277) |
| Rescissions and Claim Denials (2) | (38) | (21) | (81) | (48) |
| Ending default inventory | 22,258 | 20,276 | 22,258 | 20,276 |

(1) Includes submitted claims that resolved without a claim payment.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(2) Net of any previous Rescissions and Claim Denials that were reinstated during the period. Such reinstated Rescissions and Claim Denials may ultimately result in a paid claim.

The following table shows additional information about our primary loans in default as of the dates indicated.

| Primary loans in default - additional information Missed payments - pre-foreclosure stage | June 30, 2025 #% |  | December 31, 2024 #% |  | June 30, 2024 #% |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Three payments or less | 10,918 | 49.1% | 12,673 | 52.7% | 10,225 | 50.4% |
| Four to eleven payments | 7,282 | 32.7% | 7,517 | 31.3% | 6,179 | 30.5% |
| Twelve payments or more | 2,593 | 11.6% | 2,511 | 10.4% | 2,493 | 12.3% |
| Foreclosure stage defaulted loans (1) | 1,138 | 5.1% | 1,061 | 4.4% | 977 | 4.8% |
| Pending claims | 327 | 1.5% | 293 | 1.2% | 402 | 2.0% |
| Total default inventory | 22,258 | 100.0% | 24,055 | 100.0% | 20,276 | 100.0% |
| Policies in force | 978,862 |  | 985,089 |  | 994,235 |  |
| Primary default rate |  | 2.3% |  | 2.4% |  | 2.0% |

(1) Loans in the stage of default in which a foreclosure sale has been scheduled or held.

We develop our Default to Claim Rate estimates based primarily on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our aggregate weighted average net Default to Claim Rate assumption for our primary loans used in estimating our reserve for losses, which is net of estimated Claim Denials and Rescissions, was 25% and 23% as of June 30, 2025, and December 31, 2024, respectively. See Note 11 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional details about our Default to Claim Rate assumptions.

Although expected claims are included in our reserve for losses, the timing of claims paid is subject to fluctuation from quarter to quarter based on the rate that defaults cure and other factors (as described in “Item 1. Business—Mortgage Insurance—Defaults and Claims” in our 2024 Form 10-K) that make the timing of paid claims difficult to predict.

The following table shows net claims paid by product and the average claim paid by product for the periods indicated.

*(In thousands)*

| Claims paid Net claims paid (1) | Three Months Ended June 30, 2025 | 2024 | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Primary | $5,122 | $2,896 | $9,325 | $5,150 |
| Pool and other | (2) | 21 | (921) | 6 |
| Subtotal | 5,120 | 2,917 | 8,404 | 5,156 |
| LAE | 945 | 1,048 | 1,894 | 2,196 |
| Commutations and settlements (2) | 924 | 1,552 | 924 | 1,552 |
| Total net claims paid | $6,989 | $5,517 | $11,222 | $8,904 |
| Average net primary claim paid (1) (3) | $40.6 | $36.5 | $34.0 | $29.0 |
| Average direct primary claim paid (3) (4) | $47.8 | $38.0 | $44.0 | $29.8 |

(1) Net of reinsurance recoveries.

(2) Includes payments to commute mortgage insurance coverage on certain performing and non-performing loans.

(3) Calculated excluding the impact of: (i) LAE; (ii) commutations and settlements; and (iii) claims resolved without payment, including claims subsequently withdrawn by the servicer.

(4) Before reinsurance recoveries.

For additional information about our reserve for losses, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our 2024 Form 10-K.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

***Other Operating Expenses.*** The following table shows additional information about other operating expenses for our Mortgage Insurance segment, for the periods indicated.

*Other operating expenses*

*($ in thousands)*

| Direct | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Salaries and other base employee expenses | $11,337 | $11,336 | $(1) | $22,270 | $22,193 | $(77) |
| Variable and share-based incentive compensation | 7,921 | 4,853 | (3,068) | 13,282 | 9,810 | (3,472) |
| Other general operating expenses | 7,690 | 6,925 | (765) | 14,686 | 14,025 | (661) |
| Ceding commissions | (7,074) | (5,957) | 1,117 | (13,797) | (11,601) | 2,196 |
| Total direct | 19,874 | 17,157 | (2,717) | 36,441 | 34,427 | (2,014) |
| Allocated (1) |  |  |  |  |  |  |
| Salaries and other base employee expenses | 13,386 | 15,713 | 2,327 | 26,353 | 28,541 | 2,188 |
| Variable and share-based incentive compensation | 16,580 | 12,684 | (3,896) | 25,061 | 20,645 | (4,416) |
| Other general operating expenses | 12,362 | 14,800 | 2,438 | 26,037 | 28,520 | 2,483 |
| Total allocated | 42,328 | 43,197 | 869 | 77,451 | 77,706 | 255 |
| Total other operating expenses | $62,202 | $60,354 | $(1,848) | $113,892 | $112,133 | $(1,759) |
| Expense ratio (2) | 29.7% | 28.5% | (1.2)% | 27.3% | 26.8% | (0.5)% |

(1) See Note 4 of Notes to Unaudited Condensed Consolidated Financial Statements for more information about our allocation of corporate operating expenses.

(2) Operating expenses (which consist of policy acquisition costs and other operating expenses, as well as allocated corporate operating expenses), expressed as a percentage of net premiums earned.

Share-based incentive compensation expense increased for the three and six months ended June 30, 2025, as compared to the same periods in 2024, primarily due to increases in the projected payouts associated with outstanding performance-based RSUs. Share-based incentive compensation expense also included $10 million of costs recognized on RSUs granted to retirement eligible grantees during the second quarter of 2025, as compared to $8 million for the same period in 2024. Because these awards are no longer subject to forfeiture for time-based service, we recognize the full compensation costs as of the grant date for retirement eligible grantees. See Note 17 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information about our share-based compensation programs.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

### Results of Operations—All Other

The following table summarizes our All Other results of operations for the periods indicated.

*Summary results of operations - All Other*

*(In thousands)*

| Revenues | Three Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 | Six Months Ended June 30, 2025 | 2024 | Change Favorable (Unfavorable) 2025 vs. 2024 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Net premiums earned | $3,994 | $2,913 | $1,081 | $6,629 | $4,771 | $1,858 |
| Services revenue | 10,990 | 13,064 | (2,074) | 23,023 | 25,557 | (2,534) |
| Net investment income | 19,481 | 23,664 | (4,183) | 39,604 | 43,311 | (3,707) |
| Net gains (losses) on investments and other financial instruments | (6,704) | (49) | (6,655) | (5,417) | 334 | (5,751) |
| Income (loss) on consolidated VIEs | 185 | — | 185 | 613 | — | 613 |
| Other income | (3) | 130 | (133) | (571) | 155 | (726) |
| Total revenues | 27,943 | 39,722 | (11,779) | 63,881 | 74,128 | (10,247) |
| **Expenses** |  |  |  |  |  |  |
| Provision for losses | 143 | 24 | (119) | (30) | (124) | (94) |
| Cost of services | 8,413 | 9,379 | 966 | 17,086 | 18,553 | 1,467 |
| Other operating expenses | 27,302 | 31,292 | 3,990 | 52,189 | 62,267 | 10,078 |
| Interest expense | 8,446 | 5,107 | (3,339) | 14,456 | 6,545 | (7,911) |
| Total expenses | 44,304 | 45,802 | 1,498 | 83,701 | 87,241 | 3,540 |
| Adjusted pretax operating income (loss) (1) | $(16,361) | $(6,080) | $(10,281) | $(19,820) | $(13,113) | $(6,707) |

(1) Our senior management uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of our business segments. See Note 4 of Notes to Unaudited Condensed Consolidated Financial Statements.

Our All Other results include income (losses) from investments held at Radian Group and general corporate operating expenses not attributable or allocated to our reportable segment. All Other also includes the financial results of our immaterial operating segments, comprising our Mortgage Conduit, Title, Real Estate Services and Real Estate Technology businesses. Our All Other results may be subject to volatility from period to period as a result of mark-to-market changes in the value of mortgage assets held in our Mortgage Conduit business or seasonality and trends primarily impacting Title and Real Estate Services volumes, among other factors.

### Liquidity and Capital Resources

### Consolidated Cash Flows

The following table summarizes our consolidated cash flows from operating, investing and financing activities.

*(In thousands)*

| Summary cash flows - Consolidated Net cash provided by (used in): | Six Months Ended June 30, 2025 | 2024 |
| --- | ---: | ---: |
| Operating activities | $(645,529) | $(156,238) |
| Investing activities | 231,310 | (74,433) |
| Financing activities | 394,942 | 226,390 |
| Increase (decrease) in cash and restricted cash | $(19,277) | $(4,281) |

62

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

***Operating Activities.*** Our most significant source of operating cash flows is from premiums received from our mortgage insurance policies, while our most significant uses of operating cash flows have typically been for our operating expenses, taxes and claims paid on our mortgage insurance policies. In addition, our operating activities also include Radian Mortgage Capital’s purchases and sales of, as well as principal payments received from, residential mortgage loans held for sale, which can fluctuate from period to period. The increase in cash used in operating activities in the six months ended June 30, 2025, as compared to the same period in 2024, is primarily due to increases in net purchases of residential mortgage loans held for sale, which increased from $428 million in the first half of 2024 to $949 million for the same period in 2025.

***Investing Activities.*** Net cash provided by investing activities increased for the six months ended June 30, 2025, as compared to cash used in investing activities in the same period in 2024. The increase was primarily from: (i) principal payments on securitized residential mortgage loans held for investment and (ii) a decrease in purchases, net of sales and redemptions, of fixed-maturities available for sale and short-term investments, which helped to fund certain of our financing activities described below.

***Financing Activities.*** For the six months ended June 30, 2025, our primary use of cash for financing activities included: (i) repurchases of our common stock and (ii) payment of dividends. The net use of cash for those financing activities was more than offset by: (i) the net proceeds from the issuance of securitized nonrecourse debt and (ii) the net increase in our secured borrowings related to funding from mortgage loan financing facilities. See Notes 12 and 14 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding our borrowings and share repurchases, respectively.

See “Item 1. Financial Statements (Unaudited)—Condensed Consolidated Statements of Cash Flows (Unaudited)” for additional information.

### Liquidity Analysis—Holding Company

Radian Group serves as the holding company for our operating subsidiaries and does not have any operations of its own. At June 30, 2025, Radian Group had available, either directly or through unregulated subsidiaries, unrestricted cash and liquid investments of $784 million. Total liquidity was $1.1 billion as of June 30, 2025, and includes our $275 million unsecured revolving credit facility.

During the six months ended June 30, 2025, Radian Group’s available liquidity decreased by $101 million, primarily due to $506 million paid for dividends and share repurchases, as described below, partially offset by $400 million received from Radian Guaranty, consisting of a $200 million return of capital and a $200 million ordinary dividend. See Note 16 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information on these distributions.

In addition to available cash and marketable securities, including net investment income earned on such investments, Radian Group’s principal sources of cash to fund future liquidity needs include: (i) payments made to Radian Group by its subsidiaries under expense- and tax-sharing arrangements and (ii) to the extent available, dividends or other distributions from its subsidiaries.

Radian Group has in place a $275 million unsecured revolving credit facility with a syndicate of bank lenders. The revolving credit facility matures in December 2026, although under certain conditions Radian Group may be required to offer to repay any outstanding amounts and terminate lender commitments earlier than the maturity date. Subject to certain limitations, borrowings under the credit facility may be used for working capital and general corporate purposes, including, without limitation, capital contributions to our insurance and other subsidiaries as well as growth initiatives. The facility provides us with additional flexibility for short-term cash management and, during the second quarter of 2025, we borrowed and repaid in full $50 million under this facility in support of our capital return opportunities. At June 30, 2025, the full $275 million was available under the facility. See Note 12 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information on the unsecured revolving credit facility.

In connection with our Mortgage Conduit business, Radian Mortgage Capital has entered into the Master Repurchase Agreements to finance the acquisition of residential mortgage loans and related mortgage loan assets. In the ordinary course of its business, Radian Mortgage Capital expects to renew the Master Repurchase Agreements on or prior to expiration and/or to enter into new agreements to finance the acquisition of residential mortgage loans and related mortgage loan assets. As of June 30, 2025, Radian Group has entered into four separate Parent Guarantees to guaranty the obligations under the Master Repurchase Agreements. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information. In addition to financing the acquisition of mortgage loan assets under the Master Repurchase Agreements, Radian Mortgage Capital may fund such purchases directly using capital contributed from Radian Group.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

We expect Radian Group’s principal liquidity demands for the next 12 months to be: (i) the payment of corporate expenses, including taxes; (ii) interest payments on our outstanding debt obligations; (iii) the payment of quarterly dividends on our common stock, which are currently $0.255 per share, and which remain subject to approval by our board of directors and our ongoing assessment of our financial condition and potential needs related to the execution and implementation of our business plans and strategies; (iv) potential repurchases of shares of our common stock pursuant to share repurchase authorizations, as described below; and (v) investments to support our business strategy, including investments to expand and diversify our business and revenue streams and capital contributions to our subsidiaries.

In addition to our ongoing short-term liquidity needs discussed above, our most significant need for liquidity beyond the next 12 months is the repayment of $1.1 billion aggregate principal amount of our senior debt due in future years. See “Capitalization—Holding Company” below for details of our debt maturity profile.

Radian Group’s liquidity demands for the next 12 months or in future periods could also include: (i) early repurchases or redemptions of portions of our debt obligations and (ii) potential payments pursuant to the Parent Guarantees.

For additional information about related risks and uncertainties, see “*Our sources of liquidity may be insufficient to fund our obligations”* and “*Radian 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”* under “Item 1A. Risk Factors” in our 2024 Form 10-K.

In addition to Radian Group’s existing sources of liquidity to fund its obligations, we may decide to seek additional capital, including by incurring additional debt, issuing additional equity, or selling assets, which we may not be able to do on favorable terms, if at all.

***Share Repurchases.*** During the six months ended June 30, 2025, the Company repurchased 13.4 million shares of Radian Group common stock under programs authorized by Radian Group’s board of directors, at a total cost of $430 million, including commissions. See Note 14 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details on our share repurchase programs.

***Dividends and Dividend Equivalents.*** In February 2025, Radian Group’s board of directors authorized an increase to the Company’s quarterly dividend from $0.245 to $0.255 per share. Based on our outstanding shares of common stock and our current dividend level, we would require approximately $138 million in aggregate to pay dividends for the next 12 months, plus an incremental amount for dividend equivalents that will fluctuate based on final shares vested under our performance-based RSU programs. So long as no default or event of default exists under our revolving credit facility or the Parent Guarantees, Radian Group is not subject to any legal or contractual limitations on its ability to pay dividends except those generally applicable to corporations that are incorporated in Delaware. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional details. The declaration, level and payment of future quarterly dividends remains subject to the board of directors’ discretion and determination.

***Corporate Expenses and Interest Expense.*** Radian Group has expense-sharing arrangements in place with its principal operating subsidiaries that require those subsidiaries to pay their allocated share of certain holding-company-level expenses, including interest payments on Radian Group’s outstanding debt obligations. Corporate expenses and interest expense on Radian Group’s debt obligations allocated under these arrangements during the six months ended June 30, 2025, of $86 million and $33 million, respectively, were substantially all reimbursed by its subsidiaries. We expect substantially all of our holding company expenses to continue to be reimbursed by our subsidiaries under our expense-sharing arrangements. The expense-sharing arrangements, as amended, between Radian Group and its mortgage insurance subsidiaries have been approved by the Pennsylvania Insurance Department, but such approval may be modified or revoked at any time.

***Taxes.*** Pursuant to our tax-sharing agreements, our operating subsidiaries pay Radian Group an amount equal to any federal income tax the subsidiary would have paid on a standalone basis if they were not part of our consolidated tax return. As a result, from time to time, under the provisions of our tax-sharing agreements, Radian Group may pay to or receive from its operating subsidiaries amounts that differ from Radian Group’s consolidated federal tax payment obligation. There were $10 million of tax-sharing agreement payments received by Radian Group from its subsidiaries during the six months ended June 30, 2025.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

### Capitalization—Holding Company

The following table presents our holding company capital structure.

*(In thousands, except per-share amounts and ratios)*

| Capital structure Debt | June 30, 2025 | December 31, 2024 |
| --- | ---: | ---: |
| Senior Notes due 2027 | $450,000 | $450,000 |
| Senior Notes due 2029 | 625,000 | 625,000 |
| Unamortized discount and debt issuance costs | (8,397) | (9,663) |
| Revolving credit facility | — | — |
| Total | 1,066,603 | 1,065,337 |
| Stockholders’ equity | 4,492,681 | 4,623,858 |
| Total capitalization | $5,559,284 | $5,689,195 |
| Holding company debt-to-capital ratio (1) | 19.2% | 18.7% |
| Shares outstanding | 135,395 | 147,569 |
| Book value per share | $33.18 | $31.33 |

(1) Calculated as carrying value of senior notes, which were issued and are owed by our holding company, divided by carrying value of senior notes and stockholders’ equity. This holding company ratio does not include the effects of amounts owed by our subsidiaries related to secured borrowings.

Stockholders’ equity decreased by $131 million from December 31, 2024, to June 30, 2025. The net decrease in stockholders’ equity for the six months ended June 30, 2025, resulted primarily from: (i) share repurchases of $430 million, excluding related excise taxes due and (ii) dividend and dividend equivalents of $75 million. These were partially offset by our net income of $286 million and a net decrease in unrealized losses on investment securities of $77 million as a result of decreases in market interest rates during the period. As of June 30, 2025, we did not expect to realize a loss for our investments in an unrealized loss position given our intent and ability to hold these investment securities until recovery of their amortized cost basis.

The increase in book value per share from $31.33 at December 31, 2024, to $33.18 at June 30, 2025, is primarily due to: (i) an increase of $1.94 per share attributable to our net income for the six months ended June 30, 2025, and (ii) an increase of $0.52 per share due to a net decrease in unrealized losses in our available for sale securities, recorded in accumulated other comprehensive income for the six months ended June 30, 2025. These increases were partially offset primarily by a decrease of $0.51 per share attributable to dividends and dividend equivalents.

We regularly evaluate opportunities, based on market conditions, to finance our operations by accessing the capital markets or entering into other types of financing arrangements with institutional and other lenders. We also regularly consider various measures to improve our capital and liquidity positions, as well as to strengthen our balance sheet, improve Radian Group’s debt maturity profile and maintain adequate liquidity for our operations. Among other things, these measures may include borrowing agreements or arrangements, such as securities or other master repurchase agreements and revolving credit facilities. In the past we have repurchased or exchanged, prior to maturity, some of our outstanding debt, and in the future, we may from time to time seek to redeem, repurchase or exchange for other securities, or otherwise restructure or refinance some or all of our outstanding debt prior to maturity in the open market through other public or private transactions, including pursuant to one or more tender offers or through any combination of the foregoing, as circumstances may allow. The timing or amount of any potential transactions will depend on a number of factors, including market opportunities and our views regarding our capital and liquidity positions and potential future needs. There can be no assurance that any such transactions will be completed on favorable terms, or at all.

### Mortgage Insurance

Historically, one of the primary demands for liquidity in our Mortgage Insurance business is the payment of claims, net of reinsurance, including from commutations and settlements. See Note 11 of Notes to Unaudited Condensed Consolidated

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Financial Statements for information on our mortgage insurance reserve for losses and LAE, which represents our best estimate for the costs of settling future claims on currently defaulted mortgage loans.

Other principal demands for liquidity in our Mortgage Insurance business are expected to include: (i) expenses (including those allocated from Radian Group); (ii) repayments of FHLB advances; (iii) distributions from Radian Guaranty to Radian Group, including returns of capital or recurring ordinary dividends, as discussed below; and (iv) taxes, including potential additional purchases of U.S. Mortgage Guaranty Tax and Loss Bonds. See Notes 10 and 16 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information related to these non-interest-bearing instruments.

The principal sources of liquidity in our Mortgage Insurance business currently include insurance premiums, net investment income and cash flows from: (i) investment sales and maturities; (ii) FHLB advances; and (iii) if necessary, capital contributions from Radian Group. We believe that the operating cash flows generated by Radian Guaranty, as well as our other immaterial mortgage insurance subsidiaries, will provide them with the funds necessary to satisfy their respective needs for the foreseeable future.

As of June 30, 2025, Radian Guaranty maintained claims paying resources of $6.1 billion on a statutory basis, which consist of contingency reserves, statutory policyholders’ surplus, premiums received but not yet earned and loss reserves. In addition, our reinsurance programs are designed to provide additional claims-paying resources during times of economic stress and elevated losses. See Note 8 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Radian Guaranty’s Risk-to-capital as of June 30, 2025, was 10.3 to 1. Radian Guaranty is not expected to need additional capital to satisfy state insurance regulatory requirements in their current form. At June 30, 2025, Radian Guaranty had statutory policyholders’ surplus of $681 million. This balance includes a $998 million benefit from U.S. Mortgage Guaranty Tax and Loss Bonds issued by the U.S. Department of the Treasury, which mortgage guaranty insurers such as Radian Guaranty may purchase in order to be eligible for a tax deduction, subject to certain limitations, related to amounts required to be set aside in statutory contingency reserves. In our 2024 Form 10-K, see Note 16 of Notes to Consolidated Financial Statements and “*Radian 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 liquidit*y” under “Item 1A. Risk Factors” for more information.

Radian Guaranty currently is an approved mortgage insurer under the PMIERs. Private mortgage insurers, including Radian Guaranty, are required to comply with the PMIERs to remain approved insurers of loans purchased by the GSEs. At June 30, 2025, Radian Guaranty’s Available Assets under the PMIERs financial requirements totaled $6.0 billion, resulting in a PMIERs Cushion of $2.0 billion, or 51%, over its Minimum Required Assets. Those amounts compare to Available Assets of $6.0 billion and a PMIERs Cushion of $2.2 billion, or 56%, at December 31, 2024.

Despite holding assets above the minimum statutory capital thresholds and PMIERs financial requirements, the ability of Radian’s mortgage insurance subsidiaries to pay dividends on their common stock is restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under Pennsylvania’s insurance laws, ordinary dividends and other distributions may only be paid out of an insurer’s positive unassigned surplus unless the Pennsylvania Insurance Department approves the payment of dividends or other distributions from another source.

Radian Guaranty received approval from the Pennsylvania Insurance Department to make a return of capital distribution to Radian Group of $200 million during the first three months of 2025 from its paid in surplus. In the second quarter of 2025, Radian Guaranty paid $200 million in ordinary dividends to Radian Group, and we expect Radian Guaranty to maintain the ability to pay ordinary dividends during the remainder of 2025 and for the foreseeable future. See Note 16 of Notes to Consolidated Financial Statements in our 2024 Form 10-K for additional information on this return of capital distribution, as well as our statutory dividend restrictions and contingency reserve requirements.

Radian Guaranty is a member of the FHLB. As a member, it may borrow from the FHLB, subject to certain conditions, which include requirements to post collateral and to maintain a minimum investment in FHLB stock. Advances from the FHLB may be used to provide low-cost, supplemental liquidity for various purposes, including to fund incremental investments. Radian’s current strategy includes using FHLB advances as financing for general cash management and liquidity purposes. As of June 30, 2025, there were $99 million of FHLB advances outstanding. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

### Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

### All Other

Additional capital support may also be required for potential investments in our other business initiatives to support our strategy of growing our businesses. During the six months ended June 30, 2025 and 2024, Radian Group made $24 million and $47 million, respectively, of additional equity contributions to support our Title, Real Estate Services and Real Estate Technology businesses. During the six months ended June 30, 2024, Radian Group made a $15 million additional equity contribution to facilitate the growth of our Mortgage Conduit business.

In the event the cash flows from operations of our All Other businesses continue to be insufficient to fund all of their needs, Radian Group may continue to provide additional funds in the form of additional capital contributions or other support. See “*Investments 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”* under “Item 1A. Risk Factors” in our 2024 Form 10-K for additional information.

### Ratings

Ratings independently assigned by third-party statistical rating organizations often are considered in assessing our credit strength and the financial strength of our primary insurance subsidiaries. Radian Group, Radian Guaranty and Radian Title Insurance are currently assigned the financial strength ratings set forth in the chart below, which are provided for informational purposes only and are subject to change. See “*Potential 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”* under “Item 1A. Risk Factors” in our 2024 Form 10-K.

| Ratings |  |  |  |  |
| --- | --- | --- | --- | --- |
| **Subsidiary** | **Demotech, Inc.** | **Fitch (1)** | **Moody’s (1)** | **S&P (1)** |
| Radian Group (2) | N/A | BBB | Baa3 | BBB- |
| Radian Guaranty | N/A | A | A3 | A- |
| Radian Title Insurance | A | N/A | N/A | N/A |

(1) Fitch Ratings (“Fitch”), Moody’s Investors Service (“Moody’s”) and S&P Global Ratings (“S&P”) each currently rate the outlook for both Radian Group and Radian Guaranty as Stable.

(2) Senior debt ratings.

### Critical Accounting Estimates

As of the filing date of this report, there were no significant changes in our critical accounting estimates from those discussed in our 2024 Form 10-K. See Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements for accounting pronouncements issued but not yet adopted that may impact the Company’s consolidated financial position, earnings, cash flows or disclosures.

## Market risk

As filed, 924 characters.

Market risk represents the potential for loss due to adverse changes in the value of financial instruments as a result of changes in market conditions. Examples of market risk include changes in interest rates, credit spreads, foreign currency exchange rates and equity prices. We regularly analyze our exposure to interest rate risk and credit spread risk and have determined that the fair value of our investments is materially exposed to changes in both interest rates and credit spreads. See “*Our success depends, in part, on our ability to manage risks in our investment portfolio”* under “Item 1A. Risk Factors” in our 2024 Form 10-K.

Our market risk exposures at June 30, 2025, related to our investments, including our residential mortgage loans held for sale and retained VIE interests, primarily relate to interest rate and credit risk and have not materially changed from those identified in our 2024 Form 10-K.

## Controls and procedures

As filed, 1,652 characters.

### Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of June 30, 2025, pursuant to Rule 15d-15(b) under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2025, our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

### Changes in Internal Control Over Financial Reporting

During the three-month period ended June 30, 2025, there was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 1,164 characters.

There have been no material changes to our risk factors from those previously disclosed in our 2024 Form 10-K. However, the primary and secondary impacts of recent regulatory and legislative actions, tariffs and trade policies, and responses thereto, have impacted the global economy, disrupted global supply chains, created significant uncertainty and volatility in the U.S. and global financial markets, and increased the risks of recession and elevated unemployment levels. In addition, reductions in staffing as well as changes in leadership at several government agencies, including the FHFA and FHA, and the GSEs, are influencing changes in federal housing policies and the housing finance system and have resulted in changes to the business practices of the GSEs. Accordingly, the impact of recent regulatory and legislative actions and other actions of the current presidential administration on, among other things, the macroeconomic environment and regulatory and government policies could exacerbate the other risks and uncertainties set forth in “Item 1A. Risk Factors” in our 2024 10-K and could negatively impact our businesses and financial results.

Filed Aug 1, 2025.
Source: SEC EDGAR, the filing index for accession 0000950170-25-101425. Last ingested by Listed: Oct 24, 2026, 14:59 ET. No prices; not investment advice.