EMERYVILLE, Calif.,
April 17, 2015 /PRNewswire/ -- NMI
Holdings, Inc. (Nasdaq: NMIH), the parent company of National
Mortgage Insurance Corporation (National MI), today commented on
the final Private Mortgage Insurer Eligibility Requirements
(PMIERs) released today by the Federal Housing Finance Agency
(FHFA). The PMIERs establish more stringent standards for
determining a mortgage insurance company's eligibility to insure
loans sold to or guaranteed by Fannie Mae and Freddie Mac. The
PMIERs will go into effect on December
31, 2015. Insurers will have a transition period to
satisfy the financial requirements of PMIERs, but not beyond
July 1, 2017.
"National MI welcomes the new PMIERs," said Bradley Shuster, CEO of National MI. "This
initiative reinforces the importance of a sound and financially
sustainable private mortgage insurance industry, which is a
critical component of a healthy residential mortgage market. With
significant undeployed capital, National MI is well positioned to
continue to grow insurance-in-force and to take on an increasing
role in providing credit enhancement to the housing finance
industry, reducing the government's footprint."
As of March 31, 2015, the company
estimates that it had sufficient available assets in its insurance
companies to meet the risk-based assets requirements under
PMIERs. The company estimates that available assets at its
insurance companies and its holding company provide sufficient
capital to write approximately $20
billion of new insurance under the risk-to-required assets
framework of PMIERs.
"Given National MI's strong capital position relative to
risk-in-force, we look forward to growing our business with
existing customers and continuing to expand our customer base,"
said Jay Sherwood, president of
National MI.
The company expects to more fully discuss the PMIERs as part of
its announcement of first quarter 2015 financial results on
May 5, 2015.
About National MI
National Mortgage Insurance
Corporation (National MI), a subsidiary of NMI Holdings, Inc.
(NASDAQ: NMIH), is 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
Certain statements contained in this press
release may constitute 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 ("PSLRA"). The PSLRA
provides a "safe harbor" for any forward-looking statements.
All statements other than statements of historical fact included in
or incorporated by reference in this release are forward-looking
statements, including any statements about our expectations,
outlook, beliefs, plans, predictions, forecasts, objectives,
assumptions or future events or performance. These statements
are often, but not always, made through the use of words or phrases
such as "anticipate," "believe," "can," "could," "may," "predict,"
"assume," "potential," "should," "will," "estimate," "plan,"
"project," "continuing," "ongoing," "expect," "intend" and similar
words or phrases. All forward-looking statements are only
predictions and involve estimates, known and unknown risks,
assumptions and uncertainties that may turn out to be inaccurate
and could cause actual results to differ materially from those
expressed in them. Many risks and uncertainties are inherent
in our industry and markets. Others are more specific to our
business and operations. Important factors that could cause
actual events or results to differ materially from those indicated
in such statements include, but are not limited to: our ability to
implement our business strategy, including our ability to attract
and retain a diverse customer base and to achieve a diversified mix
of business across the spectrum of our product offerings; changes
in the business practices of the GSEs that may impact the use of
private mortgage insurance, including decisions they may make with
respect to certain fees and loan-level adjustments they charge on
conforming mortgages; our ability to comply with the financial
requirements of the PMIERs, once effective; our ability to maintain
sufficient holding company liquidity to meet our short- and
long-term liquidity needs; heightened competition for our mortgage
insurance business from other private mortgage insurers and the
FHA; changes to laws and regulations that impact the role of the
GSEs in the secondary market or the use of private mortgage
insurance; and general economic downturns and volatility.
These risks and uncertainties also include, but are not limited to,
those set forth under the heading "Risk Factors" detailed in Item
1A of Part I of our Annual Report on Form 10-K for the year ended
December 31, 2014 and other reports
we file with the SEC. All subsequent written and oral
forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by
these cautionary statements. We caution you not to place
undue reliance on any forward-looking statement, which speaks only
as of the date on which it is made, and we undertake no obligation
to publicly update or revise any forward-looking statement to
reflect new information, future events or circumstances that occur
after the date on which the statement is made or to reflect the
occurrence of unanticipated events except as required by law.
Press Contact
Mary
McGarity
Strategic Vantage Mortgage Public Relations
(203)513-2721
MaryMcGarity@StrategicVantage.com
Investor Contact
John M.
Swenson
Vice President, Investor Relations and Treasury
john.swenson@nationalmi.com
(510)788-8417
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SOURCE NMI Holdings, Inc.