NMI Holdings, Inc. Releases Monthly Operating Statistics for September 2020

Rhea-AI Summary

NMI Holdings, Inc. (Nasdaq: NMIH) reported significant operational metrics for September 2020. As of September 30, the company had 13,765 loans in default, translating to a default rate of 3.60%. This represents a decrease in the number of loans in default compared to previous months: 14,236 as of August 31 and 14,175 on July 31. The company noted the potential for increased defaults as COVID-19 challenges persist and borrowers may enter forbearance programs. NMIH is focused on providing private mortgage insurance and supporting low down payment borrowers.

Positive

• Decrease in loans in default from August 2020 (14,236) to September 2020 (13,765).
• Default rate remains relatively stable at 3.60%, compared to higher rates earlier in the year.

Negative

• Potential for increased defaults due to ongoing COVID-19 challenges and the risk of borrowers accessing forbearance programs.

EMERYVILLE, Calif., Oct. 05, 2020 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported selected operating statistics for the month of September 2020. At September 30, 2020, the company reported 13,765 loans in default and a default rate of 3.60%.

		Default Activity as of:
		3/31/2020		6/30/2020		7/31/2020		8/31/20		9/30/20
Number of loans in default (1)		1,449		10,816		14,175		14,236		13,765
Default rate (2)		0.38%		2.90%		3.78%		3.76%		3.60%

		New Insurance Written During:
		Quarter Ended 3/31/2020	Quarter Ended 6/30/2020	Month Ended 7/31/2020	Month Ended 8/31/2020	Month Ended 9/30/2020
Weighted average composition
FICO		757	762	763	764	764
Loan-to-value (LTV)		91.3%	90.7%	90.9%	90.6%	90.7%
Debt-to-income (DTI)		34.4%	33.3%	33.0%	33.0%	32.6%
In-focus risk segments
95.01-97.0% LTV		6.4%	4.2%	2.5%	2.3%	4.6%
<680 FICO		1.9%	1.0%	0.7%	0.7%	0.7%
>45% DTI		10.3%	7.0%	4.8%	5.0%	4.9%
Layered risk (3)		0.2%	0.1%	0.1%	0.0%	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 August 31, 2020 to September 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 Report on Form 10-Q for the quarter ended June 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

FAQ

What are the latest default statistics for NMI Holdings as of September 2020?

As of September 30, 2020, NMI Holdings reported 13,765 loans in default, resulting in a default rate of 3.60%.

How does the September 2020 default rate compare to previous months for NMIH?

The default rate of 3.60% in September 2020 decreased from 3.76% in August and 3.78% in July 2020.

What risks does NMI Holdings face regarding loan defaults?

NMI Holdings may face an increase in loan defaults as borrowers impacted by COVID-19 may opt for forbearance programs.

What is the significance of the default rate for NMIH investors?

The default rate is a crucial indicator of the company's financial health and risk exposure, impacting investor confidence and stock performance.

How does NMI Holdings support low down payment borrowers?

NMI Holdings provides private mortgage insurance, enabling low down payment borrowers to achieve home ownership while protecting lenders.