Radian Group Inc. Savings Incentive Plan Amended and Restated EffectiveJanuary 1, 2008 Amendment No. 2

Exhibit 10.16

Radian Group Inc. Savings Incentive Plan

Amended and Restated Effective January 1, 2008

Amendment No. 2

WHEREAS, Radian Group Inc. (the “Company”) maintains the Radian Group Inc. Savings Incentive Plan (the “Plan”) as restated in its entirety effective January 1, 2008 and as amended by Amendment No. 1 for the benefit of its eligible employees and the eligible employees of the Participating Companies; and

WHEREAS, the Company, pursuant to the provisions of Section 11.1(a) of the Plan, has the ability to amend the Plan by action of the Board of Directors, the Compensation and Human Resources Committee or an authorized executive officer; and

WHEREAS, the Company desires to amend the Plan as necessary to: (i) comply with recent legislation including the Heroes Earnings Assistance and Relief Tax Act of 2008 and the Worker, Retiree, and Employer Recovery Act of 2008; (ii) add a Roth contribution feature to the Plan; (iii) provide that matching contributions made in cash will be invested according to the participant’s investment election for future contributions; (iv) provide that the plan administrator shall be a committee appointed by the Board of Directors; (v) provide that the amendment authority currently delegated to each executive officer shall instead be delegated to the plan administrator; and (vi) make certain clarifying changes.

NOW, THEREFORE, the Plan is hereby amended in the following respects, effective as of the date indicated:

“‘Rollover Contributions and Roth Rollover Contributions’ means, for any Eligible Employee, his rollover contributions as provided in Section 3.6.”

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“For Plan contributions under Article III (to the extent applicable), the Plan will treat an individual who dies or incurs a Total Disability on or after January 1, 2010 while performing qualified military service (as defined in Section 414(u)(5) of the Code) with respect to a Participating Company as if the individual had resumed employment in accordance with the individual’s reemployment rights under USERRA, on the day preceding death or Total Disability and terminated employment on the actual date of death or Total Disability.

The Plan will determine the amount of Salary Reduction Contributions and/or, effective January 1, 2011, Roth Contributions of an individual treated as reemployed under this Section for purposes of applying Section 414(u)(8)(C) of the Code on the basis of the individual’s average actual Salary Reduction Contributions and/or Roth Contributions for the lesser of: (i) the 12-month period of service with the Participating Company immediately prior to qualified military service; or (ii) if service with the Participating Company is less than such 12-month period, the actual length of continuous service with the Participating Company.

An individual receiving a differential wage payment paid after December 31, 2008, as defined by Section 3401(h)(2) of the Code, is treated as an Employee of the Company (or Affiliated Company) making the payment. Furthermore, the differential wage payment is treated as Compensation and 415 Compensation, and the Plan is not treated as failing to meet the requirements of any provision described in Section 414(u)(l)(C) of the Code by reason of any contribution or benefit which is based on the differential wage payment (provided the nondiscrimination requirements of Section 414(u)(12)(C) are satisfied).

2

Notwithstanding the above paragraph, for purposes of Section 401(k)(2)(B)(i)(I), an individual is treated as having been severed from employment during any period the individual is performing service in the uniformed services described in Section 3401(h)(2)(A) of the Code. If an individual elects, in accordance with this paragraph, to receive a distribution by reason of severance from employment, death or disability, the individual may not make Salary Reduction Contributions and/or Roth Contributions during the 6-month period beginning on the date of the distribution.”

“In order to authorize Salary Reduction Contributions or Roth Contributions to be made on his behalf to his Salary Reduction Contribution Account or Roth Contribution Account, a Participant shall execute a salary reduction agreement indicating the percentage (in any whole increment) by which his Compensation shall be reduced on account of such Salary Reduction Contributions and/or Roth Contributions, or take such other action at such time and in such form (including without limitation, telephonic and electronic transmission, utilization of voice response systems and computer entry) as the Plan Administrator shall prescribe.”

“Salary Reduction Contributions and Roth Contributions made on behalf of a Participant for any calendar year shall not exceed $10,500 (as adjusted in accordance with Section 402(g) of the Code and regulations thereunder).”

3

“Effective October 1, 2002, each Participant who is eligible to make Salary Reduction Contributions and, effective January 1, 2011, Roth Contributions and who has attained age 50 before the close of a Plan Year shall be eligible to make Catch-up Contributions in accordance with, and subject to the limitations of, Section 414(v) of the Code.”

“Effective November 10, 2010, the Plan Administrator shall determine the form in which Matching Contributions shall be made.”

“The distributions transferred by a Participant or an Eligible Employee from another qualified retirement plan or from an individual retirement account shall be credited to the Participant’s or Eligible Employee’s Rollover Account (or, effective January 1, 2011, for applicable distributions from another qualified retirement plan, the Participant’s Roth Rollover Contribution Account). A Participant or Eligible Employee shall be fully vested at all times in his Rollover Account and Roth Rollover Contribution Account.”

“Notwithstanding any provisions of the Plan to the contrary, effective January 1, 2011, the Plan will accept a rollover contribution to the Roth Rollover Contribution Account (but only if it is a direct rollover from a Roth elective deferral account under an applicable retirement plan described in Section 402A(e)(l) of the Code and only to the extent the rollover is permitted under the rules of Section 402(c) of the Code).”

4

“In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined in Section 414(u) of the Code), the Participant’s Beneficiary shall be entitled to any benefits that would have been provided under the Plan as if the Participant had resumed and then terminated employment on account of death, in accordance with the Heroes Earnings Assistance and Relief Tax Act of 2008.”

“With respect to any portion of a distribution attributable to an individual’s Roth Contribution Account or Roth Rollover Contribution Account, an Eligible Retirement Plan means another designated Roth account of the individual from whose Account the distribution was made or a Roth IRA (described in Section 408A of the Code) of such individual.”

5

“; fifth from the Salary Reduction Contribution Account, if any; sixth from the Roth Contribution Account, if any; and seventh from the Roth Rollover Contribution Account.”

“; fourth from the Salary Reduction Contribution Account, if any; fifth from the Roth Contribution Account, if any; and sixth from the Roth Rollover Contribution Account.”

6

“The Trustee shall invest Salary Reduction Contribution Accounts, Roth Contribution Accounts, Voluntary Savings Accounts, Matching Contribution Accounts, Discretionary Contribution Accounts, Transition Credit Contribution Accounts, Rollover Contribution Accounts and Roth Rollover Contribution Accounts paid to it and income thereon in such Investment Media as each Participant may select from among the Investment Media established by the Plan Administrator, subject to the provisions of Section 10.5(c). The Investment Media established by the Plan Administrator shall include Company Stock. Such investments acquired in the manner prescribed by the Plan shall be held by or for the Trustee.”

7

“Compensation and Human Resources Committee of the Company.”

“In addition, the Plan Administrator (effective November 10, 2010) or an executive officer (effective prior to November 10, 2010) shall have the authority and discretion to adopt any amendment to the Plan that is legally necessary, improves clarity, promotes administrative convenience or is non-material.”

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IN WITNESS WHEREOF, Radian Group Inc. has caused this Amendment No. 2 to be executed by its duly authorized party on this 23rd day of November, 2010.

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