EXHIBIT 23.1



                  Exhibit 23 - Consent of Independent Auditors


We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-75668) pertaining to the 1993 Long-Term Stock Incentive Plan of Triad
Guaranty Inc., the Registration  Statement (Form S-8 No. 33-96550) pertaining to
the Triad  Guaranty  Inc.  401(k)  Profit  Sharing  Plan,  and the  Registration
Statement (Form S-8 No. 33-69967) pertaining to the Employee Stock Purchase Plan
of Triad Guaranty Inc. of our report dated January 22, 2003, with respect to the
consolidated financial statements of Triad Guaranty Inc. included in this Annual
Report (Form 10-K) for the year ended December 31, 2002, and our report included
in the following paragraph with respect to the financial statement schedules.

Our audits also included the  financial  statement  schedules of Triad  Guaranty
Inc.  listed  in Item  15(a).  These  schedules  are the  responsibility  of the
Company's  management.  Our responsibility is to express an opinion based on our
audits. In our opinion,  the financial  statement  schedules  referred to above,
when considered in relation to the basic financial  statements taken as a whole,
present fairly in all material respects the information set forth therein.




/s/ Ernst & Young LLP
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Greensboro, North Carolina
March 27, 2003