Fannie Mae-No Politics (FNMA)

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MORE GOOD NEWS. National MI entered into a mortgage credit risk transaction with Fannie Mae to provide coverage on approximately $5.2 billion in single family mortgages.


NMI Holdings, Inc. Reports Third Quarter 2013 Financial Results
4:05 PM ET | PR Newswire
NMI Holdings, Inc., (NASDAQ: NMIH) (the "Company"), the parent company of National Mortgage Insurance Corporation (National MI), today reported its results for the three months ended September 30, 2013. The Company reported a net loss for the quarter ended September 30, 2013 of $13.9 million, or $0.25 per share, and a net loss of $42.1 million, or $0.76 per share, for the first nine months of 2013. For the third quarter of 2013, the Company had total revenues of $2.2 million, primarily comprised of $1.5 million of investment income and $0.5 million in earned premiums. The majority of premiums earned for the period are attributed to a mortgage pool transaction with Fannie Mae which became effective on September 1, 2013. For the nine months ending September 30, 2013, the Company had total revenues of $3.4 million, primarily comprised of $3.3 million of investment income. "In the third quarter of 2013, National MI entered into a mortgage credit risk transaction with Fannie Mae to provide coverage on approximately $5.2 billion in single family mortgages. We expect to earn an estimated $20 million in premiums over the 10 year coverage term," said Bradley Shuster, Chairman and CEO of NMI Holdings, Inc. "We are pleased that Fannie Mae selected National MI to provide credit risk coverage on this group of loans. We believe the marketplace recognizes the need for a new, well-capitalized, counter-party in the market. National MI brings a strong, unencumbered capital base and a low risk-to-capital ratio which is well-suited for this transaction." Total expenses for the quarter were $16.0 million, of which payroll and related expenses represented approximately 44% of the total expenses for the period. For the nine months ending September 30, 2013, the Company had total expenses of $45.5 million. At September 30, 2013, the Company had approximately $446 million of cash and investments and book equity of $447 million amounting to $8.03 in book value per share. On November 14, 2013, the Company closed its initial public offering of 2,415,000 shares of common stock (including shares purchased by the underwriters pursuant to exercise of the over-allotment option) at a public offering price of $13.00 per share, before underwriting discounts. In addition, certain existing stockholders sold 3,395 shares in the offering. Gross proceeds to the Company were $31.4 million and net proceeds after underwriting discounts and other offering expenses and reimbursements were approximately $29 million. The Company did not receive any proceeds from the sale of shares by the selling stockholders. "I am very pleased with our accomplishments in the past several quarters," Shuster said. "In less than a year, we have obtained GSE approvals and licenses in 49 out of 51 jurisdictions, made the Company operational, and began issuing mortgage insurance policies to serve the needs of the housing market. We believe the mortgage industry recognizes the value of a well-capitalized company with a master policy that provides customers with what we consider to be an unprecedented certainty of coverage." Conference Call and Webcast Details NMI Holdings, Inc. will hold a conference call today, November 20, 2013 at 2:00 p.m. Pacific time to allow analysts and stockholders the opportunity to hear management discuss the Company's quarterly results. The conference call will be broadcast live on the Company's website, in the "Investor Relations" section at http://ir.nationalmi.com. The call may also be accessed by dialing [phone] inside the U.S., or [phone] for international callers using conference ID: 12743586, or by referencing NMI Holdings, Inc. Investors and analysts are asked to dial-in ten minutes before the conference call begins. About National MI National Mortgage Insurance Corporation (National MI) is headquartered in Emeryville, California, in the San Francisco Bay Area. NMI Holdings, Inc., National MI's parent company, raised over $500 million of capital in a private placement of its securities in April 2012, and completed its initial public offering in November 2013. National MI has received approval from Fannie Mae and Freddie Mac as a qualified mortgage insurer, and has been approved to provide mortgage insurance in 48 states and the District of Columbia. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that 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. These risks and uncertainties include, but are not limited to, those set forth under the heading "Risk Factors" in our most recent Registration Statement on Form S-1, and described from time to time in subsequent reports, filed with the U.S. Securities and Exchange Commission. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. Consequently, our actual results could differ materially from those anticipated in such forward-looking statements contained in this press release. Any forward-looking statement speaks only as of the date on which it is made and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law. Media Contact: Mary McGarity Strategic Vantage Mortgage Public Relations [phone] [e-mail] CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS NMI Holdings, Inc. (A Development Stage Company) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2013 2012 2013 2012 (unaudited) (unaudited) (unaudited) (unaudited) (In Thousands, except per share data) Revenues Direct premiums written $ 482 $ -- $ 483 $ -- Net premiums earned 482 -- 483 -- Net investment income 1,519 1 3,336 1 Other revenue 160 -- (438) -- Total Revenues 2,161 1 3,381 1 Expenses Payroll and related 7,090 4,086 20,896 5,915 Share-based compensation 1,968 2,045 8,827 3,091 Professional fees 2,349 1,143 5,577 2,470 Depreciation and amortization 2,045 -- 3,892 -- Information technology 1,328 281 3,455 282 Other 1,254 559 2,833 2,938 Total Expenses 16,034 8,114 45,480 14,696 Net Loss $ (13,873) $ (8,113) $ (42,099) $ (14,695) Share Data Basic and Diluted loss per share $ (0.25) $ (0.15) $ (0.76) $ (0.46) Book value per share $ 8.03 $ 8.99 $ 8.03 $ 8.99 Weighted average common 55,637,480 55,500,100 55,589,674 32,003,750 Shares outstanding 55,637,480 55,500,100 55,637,480 55,500,100 CONDENSED CONSOLIDATED BALANCE SHEETS NMI Holdings, Inc. (A Development Stage Company) September 30, December 31, September 30, 2013 2012 2012 (unaudited) (unaudited) (In Thousands) Cash and cash equivalents $ 34,097 $ 485,855 $ 494,784 Restricted cash -- 40,338 20,830 Investment securities 411,983 4,864 3,458 Accrued investment income 1,834 -- -- Goodwill and other intangible assets 3,634 3,634 4,702 Software and equipment, net 9,054 7,550 5,761 Other assets 1,117 527 457 Total Assets $ 461,719 $ 542,768 $ 529,992 Accounts payable and accrued expenses $ 9,276 $ 8,707 $ 5,339 Purchase fees and purchase consideration payable -- 40,338 20,830 Warrant liability 5,452 4,842 5,120 Other liabilities 133 133 -- Total Liabilities 14,861 54,020 31,289 Total Stockholders' Equity (Deficit) 446,858 488,748 498,703 Total Liabilities and Stockholders' Equity $ 461,719 $ 542,768 $ 529,992 SOURCE NMI Holdings, Inc. http://rt.prnewswire.com/rt.gif?NewsItemId=FL21191&Transmission_Id=201311201605PR_NEWS_USPR_____FL21191&DateId=20131120