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

Rhea-AI Summary

On July 6, 2021, NMI Holdings reported operational statistics for June 2021, revealing 8,764 loans in default with a default rate of 1.86%. The company has decided to cease its monthly reporting of selected statistics that began during the COVID pandemic, opting to include them in quarterly earnings releases moving forward. The default rate has decreased from earlier periods, indicating a potential normalization in the economic environment.

Positive

• Default rate decreased to 1.86% from higher rates in previous quarters.
• Number of loans in default declined from 11,090 in March 2021 to 8,764 in June 2021.

Negative

• Continued risks related to COVID-19 could lead to an increase in defaults in the future.

EMERYVILLE, Calif., July 06, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported selected operating statistics for the month of June 2021. At June 30, 2021, the company reported 8,764 loans in default and a default rate of 1.86%. Given the continuing normalization of the economic environment, the company will discontinue the monthly reporting of selected operating statistics initiated at the onset of the COVID pandemic. The company will continue to report selected metrics with its quarterly earnings releases.

		Default Activity as of:
	3/31/20		6/30/20	9/30/20	12/31/20	3/31/21	6/30/21
Number of loans in default (1)	1,449		10,816	13,765	12,209	11,090	8,764
Default rate (2)	0.38%		2.90%	3.60%	3.06%	2.54%	1.86%

  

			New Insurance Written During:
			Quarter Ended 3/31/20	Quarter Ended 6/30/20	Quarter Ended 9/30/20	Quarter Ended 12/31/20	Quarter Ended 3/31/21	Quarter Ended 6/30/21
Weighted average composition
FICO			757	762	764	761	755	754
Loan-to-value (LTV)			91.3%	90.7%	90.7%	90.9%	91.0%	91.3%
Debt-to-income (DTI)			34.4%	33.3%	32.8%	33.2%	33.6%	34.4%
In-focus risk segments
95.01-97.0% LTV			6.4%	4.2%	3.2%	9.5%	9.3%	9.6%
<680 FICO			1.9%	1.0%	0.7%	1.0%	1.9%	3.8%
>45% DTI			10.3%	7.0%	4.9%	6.1%	6.7%	10.9%
Layered risk (3)			0.2%	0.1%	0.1%	0.1%	0.1%	0.7%

⁽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 May 31, 2021 to June 30, 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 our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, 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 rates reported by NMIH?

As of June 30, 2021, NMIH reported a default rate of 1.86%.

How many loans were in default for NMI Holdings in June 2021?

NMI Holdings reported 8,764 loans in default as of June 30, 2021.

When will NMI Holdings discontinue its monthly reporting of operating statistics?

NMI Holdings will discontinue its monthly reporting of selected operating statistics effective immediately, choosing to report these metrics in quarterly earnings releases instead.

How did the default rate change from March 2021 to June 2021 for NMI Holdings?

The default rate decreased from 2.54% in March 2021 to 1.86% in June 2021.