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

Rhea-AI Summary

NMI Holdings, Inc. (NMIH) reported its operating statistics for May 2021, revealing a total of 9,387 loans in default and a default rate of 2.04%. This marks a decline from previous months, reflecting a slight recovery in loan performance. Key metrics include a weighted average FICO of 754, loan-to-value (LTV) ratio of 91.4%, and debt-to-income (DTI) of 34.5%. Despite the downward trend in defaults, the company cautions that challenges from the COVID-19 pandemic may lead to an increase in defaults as borrowers potentially turn to forbearance options.

Positive

• Decrease in number of loans in default from 10,060 in April to 9,387 in May.
• Improvement in default rate from 2.24% in April to 2.04% in May.

Negative

• Potential for increased defaults in the future due to COVID-19 challenges and forbearance program utilization.

EMERYVILLE, Calif., June 03, 2021 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported selected operating statistics for the month of May 2021. At May 31, 2021, the company reported 9,387 loans in default and a default rate of 2.04%.

		Default Activity as of:
		3/31/20						6/30/20					9/30/20					12/31/20					3/31/21					4/30/21					5/31/21
Number of loans in default (1)		1,449						10,816					13,765					12,209					11,090					10,060					9,387
Default rate (2)		0.38%						2.90%					3.60%					3.06%					2.54%					2.24%					2.04%

  

			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		Month Ended 4/30/21		Month Ended 5/31/21
Weighted average composition
FICO			757			762		764		761		755		754		754
Loan-to-value (LTV)			91.3		%	90.7	%	90.7	%	90.9	%	91.0	%	91.3	%	91.4	%
Debt-to-income (DTI)			34.4		%	33.3	%	32.8	%	33.2	%	33.6	%	34.4	%	34.5	%
In-focus risk segments
95.01-97.0% LTV			6.4		%	4.2	%	3.2	%	9.5	%	9.3	%	9.1	%	9.0	%
<680 FICO			1.9		%	1.0	%	0.7	%	1.0	%	1.9	%	3.2	%	3.8	%
>45% DTI			10.3		%	7.0	%	4.9	%	6.1	%	6.7	%	9.8	%	11.6	%
Layered risk (3)			0.2		%	0.1	%	0.1	%	0.1	%	0.1	%	0.3	%	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 April 30, 2021 to May 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 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 were NMI Holdings' loans in default in May 2021?

NMI Holdings reported 9,387 loans in default in May 2021.

What is the default rate for NMIH as of May 2021?

The default rate for NMIH in May 2021 is 2.04%.

How has NMIH's default population changed recently?

NMIH's default population decreased from 10,060 in April 2021 to 9,387 in May 2021.

What are the risks affecting NMIH's default rates?

Risks include potential increases in defaults due to COVID-19 challenges and access to forbearance programs.