National Mortgage Insurance Corporation (NMI Holdings, Inc.) has returned to the capital markets for the seventh time since 2017, securing $364 million of fully-collateralised mortgage reinsurance protection through an Oaktown Re mortgage insurance-linked securities (ILS) transaction.
Oaktown Re VII Ltd. is a newly registered Bermuda domiciled special purpose insurer which is seeking to issue five tranches of notes and secure around $364 million of additional mortgage reinsurance.
The latest Oaktown Re deal from NMI Holdings provides it with excess of loss reinsurance protection which covers an existing portfolio of mortgage insurance policies written primarily from April 1st, 2021 through to September 30th, 2021.
NMI Holdings explains that the coverage provides it with protection for aggregate losses on subject loans beginning at a 1.85% cumulative claim rate threshold and continuing up to an eventual 7.45% aggregate detachment level.
“National MI expects to receive initial PMIERs credit for the portion of coverage attaching within the current risk-based required asset charge on subject loans and additional benefit in the future if the PMIERs requirement on subject loans increases, all subject to GSE approval,” explains the company.
As shown by our ILS-focused sister site Artemis’ extensive Deal Directory, this is the seventh mortgage ILS deal from NMI Holdings in the last four years.
In fact, at $364 million in size it’s the second largest deal the firm has sponsored, after the $367 million Oaktown Re VI Ltd. issuance in April of this year.
