NMI Obtains $150M Loan to Grow Business, Meet Capital Standards

NMI Holdings, the parent company of National MI, has obtained a $150 million loan to support the growth of its insured portfolio and to meet the secondary market capital standards requirement.

The Emeryville, Calif., company obtained the three-year, senior-secured term loan from JPMorgan Chase, according to a Tuesday news release. The majority of the proceeds will be contributed to NMI's primary insurance subsidiary. National MI did $3.6 billion of new insurance written in the third quarter, ranking it sixth of the seven active private mortgage insurers.

This capital contribution is expected to satisfy the regulatory demands of the government-sponsored enterprises' mortgage insurer capital requirements that go into effect at the end of the year.

"Our recent growth in new insurance written, insurance-in-force and risk-in-force has surpassed our expectations, and is driving the need for more capital to comply with the risk-to-capital frameworks of both state and federal regulatory agencies," Bradley Shuster, NMI's chairman and chief executive, said in the release.

Wachtell, Lipton, Rosen & Katz is legal counsel to NMI Holdings on the loan.