Exhibit 99.1

Text of Press Release

Radian Announces Increase In Financial Guaranty Capacity

PHILADELPHIA, Pa., October 4, 2002 - Radian Group Inc. (NYSE: RDN) today
announced that it would significantly expand the capacity of its financial
guaranty direct insurance business, in response to today's downgrade of Radian
Reinsurance Inc. by rating agency Standard & Poor's. The company will maintain
the capacity of and focus on its reinsurance business. Radian said that while it
was disappointed with the downgrade, from AAA to AA, the company would combine
and optimize risk capacity and capital structure across its financial guaranty
businesses to significantly increase its capacity to write new, high-return
business.

"Radian Reinsurance's new AA rating will free significant capital for us to
redeploy to Radian Asset Assurance, beginning immediately," said Frank P.
Filipps, Radian's chairman and chief executive officer. "This accelerated step
in our diversification strategy will enable us to achieve higher rates of return
on capital by increasing risk limits in more profitable segments of our
financial guaranty business. We intend to maintain our reinsurance business at
its new AA rating, and we will be actively engaged in shaping its future with
the primary insurers."

Radian Group Inc. is a leading credit enhancement provider to the global
financial and capital markets, headquartered in Philadelphia. Radian's
subsidiaries provide products and services through three business lines:
financial guaranty, mortgage insurance and mortgage services. Radian Reinsurance
is a provider of treaty and facultative reinsurance for primary insurers of both
municipal bonds and asset-backed obligations, helping insurers manage portfolio
risk exposure; increase insurance capacity; and meet regulatory and
rating-agency capital requirements. Radian Asset Assurance is a direct writer of
municipal bond insurance, insurance of asset-backed obligations and trade
receivables, and other credit-related insurance products, which extend insurance
benefits to an array of institutions and securities issuers. Additional
information about Radian may be found at www.radiangroupinc.com.
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