NMI Holdings, Inc. Releases Monthly Operating Statistics for February 2021

Rhea-AI Summary

On March 2, 2021, NMI Holdings, Inc. (NMIH) reported operational statistics for February 2021. The company recorded 11,648 loans in default, resulting in a default rate of 2.77%. This shows a decrease in default loans compared to prior months. The report highlighted key metrics including FICO scores averaging 755 and a loan-to-value ratio of 90.9%. The announcement also cautioned that loans in default may increase due to potential borrower challenges amid the ongoing COVID-19 pandemic and related forbearance programs.

Positive

• Decrease in total default loans from 11,905 in January to 11,648 in February.
• Default rate decreased to 2.77%, indicating improved loan performance.

Negative

• Potential for future increases in loan defaults due to ongoing COVID-19 challenges.

EMERYVILLE, Calif., March 02, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported selected operating statistics for the month of February 2021. At February 28, 2021, the company reported 11,648 loans in default and a default rate of 2.77%.

			Default Activity as of:
			3/31/2020				6/30/2020		9/30/2020		12/31/2020		1/31/2021		2/28/2021
Number of loans in default (1)			1,449				10,816		13,765		12,209		11,905		11,648
Default rate (2)			0.38%				2.90%		3.60%		3.06%		2.90%		2.77%

			New Insurance Written During:
			Quarter Ended 3/31/2020			Quarter Ended 6/30/2020			Quarter Ended 9/30/2020		Quarter Ended 12/31/2020		Month Ended 1/31/2021		Month Ended 2/28/2021
Weighted average composition
FICO			757			762			764		761		756		755
Loan-to-value (LTV)			91.3%			90.7%			90.7%		90.9%		90.9%		90.9%
Debt-to-income (DTI)			34.4%			33.3%			32.8%		33.2%		33.6%		33.7%
In-focus risk segments
95.01-97.0% LTV			6.4%			4.2%			3.2%		9.5%		9.2%		9.1%
<680 FICO			1.9%			1.0%			0.7%		1.0%		1.4%		1.8%
>45% DTI			10.3%			7.0%			4.9%		6.1%		6.5%		6.5%
Layered risk (3)			0.2%			0.1%			0.1%		0.1%		0.1%		0.1%

(1)      Loans are considered to be in default as of the payment date at which a borrower has missed the preceding two or more consecutive monthly payments
(2)      Default rate is calculated as total loans in default divided by total policies in force
(3)      Layered risk includes loans with more than one in-focus risk factor

The information concerning the Company's default inventory is compiled from reports received from loan servicers and can be influenced by, among other things, the date on which a servicer generates its report, the number of business days in a month, and transfers of servicing rights between loan servicers. While our total default population declined from January 31, 2021 to February 28, 2021, our default population may increase going forward if additional borrowers face challenges related to the COVID-19 outbreak and choose to access the forbearance program for federally backed loans codified under the CARES Act or other programs made available by private lenders.

About NMI Holdings
NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower's default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements
This press release may contain statements that are deemed to be forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act”), and the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements.  Any or all of our forward–looking statements in this press release may turn out to be inaccurate.  More information about the risks, uncertainties and assumptions affecting the company can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K for the year ended December 31, 2020 and in other filings we make with the Securities and Exchange Commission.  We have based any forward–looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, operating results, business strategy and financial needs. All forward–looking statements are necessarily only estimates and actual events may differ materially from our current expectations. You are, therefore, cautioned not to place undue reliance on such statements. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.

Investor Contact
John M. Swenson
Vice President, Investor Relations and Treasury
john.swenson@nationalmi.com
(510) 788-8417

FAQ

What are the latest default statistics for NMI Holdings (NMIH) as of February 2021?

As of February 28, 2021, NMI Holdings reported 11,648 loans in default, with a default rate of 2.77%.

How did NMI Holdings (NMIH) perform in terms of loans in default in February 2021?

NMI Holdings saw a decrease in loans in default from 11,905 in January to 11,648 in February 2021.

What is the significance of the default rate of 2.77% reported by NMI Holdings (NMIH)?

The default rate of 2.77% reflects a decline compared to earlier months, indicating improved loan performance.

What risks are associated with NMI Holdings (NMIH) regarding loan defaults?

The company cautioned that loan defaults may rise due to borrower challenges related to COVID-19 and forbearance programs.