XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.22.2

Borrowings and Financing Activities | 6 Months Ended
--- | ---
Jun. 30, 2022
Long-Term Debt, Unclassified [Abstract] |
Borrowings and Financing Activities | Borrowings and Financing Activities The carrying value of our debt at June 30, 2022, and December 31, 2021, was as follows.
Borrowings
(In thousands) |  | June 30, 2022 |  | December 31, 2021
Senior notes |  |  |  |
Senior Notes due 2024 |  | $ | 447,211 |  |  | $ | 446,631 |
Senior Notes due 2025 |  | 519,338 |  |  | 518,405 |
Senior Notes due 2027 |  | 444,909 |  |  | 444,437 |
Total senior notes |  | $ | 1,411,458 |  |  | $ | 1,409,473 |
FHLB advances |  |  |  |
FHLB advances due 2022 |  | $ | 95,915 |  |  | $ | 71,050 |
FHLB advances due 2023 |  | 52,995 |  |  | 52,995 |
FHLB advances due 2024 |  | 18,954 |  |  | 13,954 |
FHLB advances due 2025 |  | 9,984 |  |  | 9,984 |
FHLB advances due 2027 |  | 6,436 |  |  | 3,000 |
Total FHLB advances |  | $ | 184,284 |  |  | $ | 150,983 |
FHLB Advances As of June 30, 2022, we had $184.3 million of fixed-rate advances outstanding with a weighted average interest rate of 1.18%. Interest on the FHLB advances is payable quarterly, or at maturity if the term of the advance is less than 90 days. Principal is due at maturity. For obligations with maturities greater than or equal to 90 days, we may prepay the debt at any time, subject to a prepayment fee calculation. The principal balance of the FHLB advances are required to be collateralized by eligible assets with a market value that must be maintained generally within a minimum range of 103% to 114% of the amount borrowed, depending on the type of assets pledged. Our fixed-maturities available for sale and trading securities include securities totaling $207.2 million and $167.3 million at June 30, 2022, and December 31, 2021, respectively, which serve as collateral for our FHLB advances to satisfy this requirement. See Note 12 of Notes to Consolidated Financial Statements in our 2021 Form 10-K for additional information about our FHLB advances. Revolving Credit Facility Radian Group has in place a $275.0 million unsecured revolving credit facility with a syndicate of bank lenders. As of June 30, 2022, Radian Group was in compliance with all of the revolving credit facility covenants, and there were no amounts outstanding. For more information regarding our revolving credit facility, including certain of its terms and covenants, see Note 12 of Notes to Consolidated Financial Statements in our 2021 Form 10-K. Mortgage Financing Facility On July 15, 2022, Radian Group entered into a Guaranty Agreement (the “Parent Guaranty”) in favor of Goldman to guaranty the obligations of Radian Group’s subsidiaries Radian Mortgage Capital and Radian Liberty Funding LLC (“Liberty”) in connection with a $300 million mortgage loan repurchase facility (the “Mortgage Financing Facility”) that Radian Mortgage Capital and Liberty have entered into with Goldman pursuant to the Master Repurchase Agreement (defined below). Radian Mortgage Capital and its wholly-owned subsidiary Liberty entered into a Master Repurchase Agreement (the “Master Repurchase Agreement”), dated as of July 15, 2022, among Liberty, Goldman and Radian Mortgage Capital, pursuant to which Liberty may from time to time sell to Goldman, and later repurchase, certain Participation Interests (as defined in the Master Repurchase Agreement) in residential mortgage loan assets. The Mortgage Financing Facility is uncommitted, and Goldman is under no obligation to fund the purchase of any residential mortgage loan assets under this facility. In the event Goldman advances funds under the Mortgage Financing Facility, the amount of such advances generally will be calculated as a percentage of the unpaid principal balance or market value of the residential mortgage loan assets, depending on the credit characteristics of the loans being purchased. The Master Repurchase Agreement contains provisions that provide Goldman with certain rights in the event of a decline in the market value of the purchased residential mortgage loan assets. Under these provisions, Goldman may require Liberty to transfer cash or additional eligible residential mortgage loan assets with an aggregate market value that is equal to the difference between the value of the residential mortgage loan assets then subject to the Master Repurchase Agreement and a minimum threshold amount. Pursuant to the Parent Guaranty, Radian Group is subject to negative and affirmative covenants customary for this type of financing transaction, including, among others: (i) limitations on the incurrence of debt; (ii) restrictions on certain transactions with affiliates, payments and investments; and (iii) a requirement that Radian Guaranty maintain its eligibility as a private mortgage insurer with Freddie Mac and Fannie Mae. The Parent Guaranty also contains various financial covenants that the Company must remain in compliance with, including those related to: (i) the total adjusted capital of the Company’s primary mortgage insurance subsidiaries Radian Guaranty and Radian Reinsurance; (ii) the Company’s minimum consolidated net worth; and (iii) the Company’s maximum debt-to-total capitalization ratio. The covenants and financial covenants in the Parent Guaranty are generally consistent with the comparable covenants in the Company’s revolving credit facility, including with respect to the payment of dividends on shares of its common stock which are permitted under both agreements so long as no default or event of default exists and the Company is in pro forma compliance with the applicable financial covenants on the date a dividend is declared.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_LongTermDebtAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration