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Credit Committee Charter
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Credit Committee Charter (41k)
The Credit Management Committee (the “Committee”) is a committee of the Board of Directors (the “Board”) of Radian Group Inc. (the “Company”). The Committee assists the Board in its responsibilities related to the oversight of the Company’s credit and risk management policies and procedures. In performing its functions, the Committee engages its own legal counsel and other professional advisors, as it deems necessary.
The function of the Committee is oversight. Management remains in the first instance responsible for the Company’s credit and risk management policies and procedures. The Company’s internal audit function examines and evaluates business processes including the Company’s risk management policies and procedures. Furthermore, the oversight of overall enterprise risk as defined by the Committee of Sponsoring Organizations (COSO) vests in the Company’s Audit Committee.
Organization
The Committee shall be composed of at least three independent directors, as “independence” is defined in the Company’s Guidelines of Corporate Governance, the listing standards of the New York Stock Exchange and the rules of the Securities and Exchange Commission.
The determination of members’ independence and other qualifications to serve as a member of the Committee is made by the Board of Directors in its discretion.
General Responsibilities
| 1. |
Inquire of management and the Company’s credit and risk management departments matters regarding significant credit-based risks or exposures faced by the Company and assess the steps management has taken to manage and price those risks.
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| 2. |
Review the Company’s credit policies and its overall credit management(s) (risk analytics).
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| 3. |
Review the quality of the mortgage insurance and financial guaranty portfolios and general compliance with underwriting guidelines and procedures, including diversification by geography, quality, type, ratings and size of risk.
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| 4. |
Review significant changes in general underwriting guidelines and limits. |
| 5. |
Review surveillance activities with a particular focus on problem credits. |
| 6. |
Review emerging matters with significant risk implications and report to the Board. |
| 7. |
Annually review and reassess the Committee’s responsibilities, functions and Charter, making changes as necessary, and conduct an annual performance evaluation of the Committee.
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Approved: November 2005
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