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## Contractual Obligations and Commitments 

We have various contractual obligations that are recorded as liabilities in our consolidated financial statements. Other items, including payments under operating lease agreements, are not recorded on our consolidated balance sheets as liabilities but represent a contractual commitment to pay . 

The following table summarizes certain of our contractual obligations and commitments, including our expected claim payments on insurance policies, as of December 31, 2012 (after giving effect to the Exchange Offer described below), and the future periods in which such obligations are expected to be settled in cash. Additional details regarding these obligations are provided in the narrative following the table and in the Notes to Consolidated Financial Statements that are referenced in the table. 

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(1) Amounts represent management’s estimate of credit loss payments (recoveries) related to these transactions as described in “Results of Operations—Financial Guaranty” above. 

(2) Our reserve for losses and LAE reflects the application of accounting policies described below in “Critical Accounting Policies—Reserve for Losses.” The payments due by period are based on management’ s estimates and assume that all of the loss reserves included in the table will result in claim payments, net of expected recoveries. Included in the uncertain category is $13.6 million of unearned premium reserves, which are included in our reserve for losses and LAE. Negative amounts presented are primarily related to expected recoveries on our financial guaranty transactions. 

(3) The timing of these potential payments is uncertain given the nature of the obligations. 

On January 4, 2013, Radian Group completed an of fer to exchange its outstanding 5.375% Senior Notes due June 15, 2015 for a new series of 9.000% Senior Notes due June 15, 2017and additional cash consideration in certain circumstances  for purposes of improving its debt maturity profile. See “ Liquidity and Capital Resources —Radian Group Short Term Liquidity Needs—Exchange of 2015 Debt”  below. 

## Other Contractual Obligations and Commitments 

In addition to the contractual obligations set forth in the table above, we have the following contractual obligations and commitments. 

Investment Commitments . As part of the non-investment grade component of our investment portfolio, we had unfunded commitments of $9.5 million at December 31, 2012, related to alternative investments that are primarily private equity structures. These commitments have capital calls expected through 2015, with the possibility of additional calls through 2017, and certain fixed expiration dates or other termination clauses. 

GSE Approvals. In February 2012, the GSEs each approved RMAI to write new mortgage insurance in certain RBC States, subject to certain terms and conditions. Pursuant to the GSE Approvals, Radian Group will be required to make a $50 million capital contribution to Radian Guaranty upon Radian Guaranty’ s breach of a Statutory RBC Requirement such that the use of RMAI is required to continue to write new business in the applicable RBC State. In addition, the GSE Approvals are conditioned upon our compliance with a broad range of conditions and restrictions. See “Business—Regulation—State Regulation— Risk-to-Capital .” 

