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

Rhea-AI Summary

NMI Holdings reported March 2021 statistics showing a decline in loans in default, totaling 11,090, with a default rate of 2.54%. This is a decrease from 11,648 loans in February 2021, highlighting an improvement in loan performance. The weighted average FICO score for loans decreased slightly to 754, with a loan-to-value ratio of 91.1% and a debt-to-income ratio of 33.7%. The report indicates potential risks as borrowers may still face challenges due to COVID-19, possibly leading to an increase in defaults in the future.

Positive

• Decrease in loans in default from 11,648 in February 2021 to 11,090 in March 2021.
• Default rate improved to 2.54%, down from 2.77% in February 2021.

Negative

• Potential for an increase in defaults due to challenges posed by COVID-19.
• Slight decrease in the weighted average FICO score from 756 to 754.

EMERYVILLE, Calif., April 02, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported selected operating statistics for the month of March 2021. At March 31, 2021, the company reported 11,090 loans in default and a default rate of 2.54%.

	Default Activity as of:
	3/31/2020		6/30/2020		9/30/2020		12/31/2020		1/31/2021		2/28/2021		3/31/2021
Number of loans in default (1)	1,449		10,816		13,765		12,209		11,905		11,648		11,090
Default rate (2)	0.38%		2.90%		3.60%		3.06%		2.90%		2.77%		2.54%

  

		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		Month Ended 3/31/2021
Weighted average
FICO		757		762		764		761		756		755		754
Loan-to-value (LTV)		91.3%		90.7%		90.7%		90.9%		90.9%		90.9%		91.1%
Debt-to-income (DTI)		34.4%		33.3%		32.8%		33.2%		33.6%		33.7%		33.7%
In-focus risk segments
95.01-97.0% LTV		6.4%		4.2%		3.2%		9.5%		9.2%		9.1%		9.4%
<680 FICO		1.9%		1.0%		0.7%		1.0%		1.4%		1.8%		2.3%
>45% DTI		10.3%		7.0%		4.9%		6.1%		6.5%		6.5%		7.2%
Layered risk (3)		0.2%		0.1%		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 February 28, 2021 to March 31, 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 were the default rates for NMI Holdings in March 2021?

NMI Holdings reported a default rate of 2.54% for March 2021.

How many loans were in default for NMIH at the end of March 2021?

At the end of March 2021, NMI Holdings reported 11,090 loans in default.

What was the FICO score for NMI Holdings loans in March 2021?

The weighted average FICO score for NMI Holdings loans in March 2021 was 754.

What might impact NMI Holdings' default rates in the future?

Potential increases in default rates could occur if borrowers face challenges due to COVID-19.