NMI Holdings, Inc. Releases Monthly Operating Statistics for November 2020
On December 4, 2020, NMI Holdings (Nasdaq: NMIH) reported operating statistics for November 2020, indicating 12,532 loans in default, with a default rate of 3.23%. This reflected a decrease of over 200 loans from the previous month, where the rate was 3.41%. The company highlighted potential challenges from the COVID-19 outbreak, suggesting defaults could rise if borrowers access forbearance programs. The press release also noted the impact of loan servicer reports on default data, emphasizing the fluctuating nature of these statistics.
- Decrease in default population from October 31 to November 30, 2020.
- Sustained loan quality metrics with consistent average FICO scores around 762.
- Default rate remains significant at 3.23%, indicating ongoing borrower challenges.
- Potential for increased defaults due to COVID-19-related borrower forbearance.
EMERYVILLE, Calif., Dec. 04, 2020 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported selected operating statistics for the month of November 2020. At November 30, 2020, the company reported 12,532 loans in default and a default rate of
| Default Activity as of: | ||||||||||||||
| 3/31/2020 | 6/30/2020 | 9/30/2020 | 10/31/2020 | 11/30/2020 | ||||||||||
| Number of loans in default (1) | 1,449 | 10,816 | 13,765 | 13,108 | 12,532 | |||||||||
| Default rate (2) | 0.38 | % | 2.90 | % | 3.60 | % | 3.41 | % | 3.23 | % | ||||
| New Insurance Written During: | |||||||||||||
| Quarter Ended 3/31/2020 | Quarter Ended 6/30/2020 | Quarter Ended 9/30/2020 | Month Ended 10/31/2020 | Month Ended 11/30/2020 | |||||||||
| Weighted average | |||||||||||||
| FICO | 757 | 762 | 764 | 764 | 762 | ||||||||
| Loan-to-value (LTV) | 91.3 | % | 90.7 | % | 90.7 | % | 90.6 | % | 90.9 | % | |||
| Debt-to-income (DTI) | 34.4 | % | 33.3 | % | 32.8 | % | 32.7 | % | 33.2 | % | |||
| In-focus risk segments | |||||||||||||
| 95.01 | 6.4 | % | 4.2 | % | 3.2 | % | 7.7 | % | 10.4 | % | |||
| <680 FICO | 1.9 | % | 1.0 | % | 0.7 | % | 0.9 | % | 1.0 | % | |||
| > | 10.3 | % | 7.0 | % | 4.9 | % | 5.5 | % | 5.9 | % | |||
| Layered risk (3) | 0.2 | % | 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 October 31, 2020 to November 30, 2020, 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, 2019 and our Quarterly Reports on Form 10-Q for the quarters ended June 30 and September 30, 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
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