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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 2025519,338 518,405 
Senior Notes due 2027444,909 444,437 
Total senior notes$1,411,458 $1,409,473 
FHLB advances
FHLB advances due 2022$95,915 $71,050 
FHLB advances due 202352,995 52,995 
FHLB advances due 202418,954 13,954 
FHLB advances due 20259,984 9,984 
FHLB advances due 20276,436 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.