NMI Holdings, Inc. Raises $550 Million to Fund New Mortgage Insurance Provider

Led by Bradley Shuster and a Highly Experienced Management Team

OAKLAND, Calif.--()--NMI Holdings, Inc. (“NMI”), a recently-formed corporation led by veteran mortgage insurance executives, announced today that it has raised gross proceeds of $550 million through the sale of common stock in a private placement. NMI intends to be a national provider of mortgage insurance upon receipt of state insurance regulatory approvals and approval from the Federal National Home Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Association (“Freddie Mac”). NMI expects to use the majority of proceeds of the offering to capitalize its existing insurance subsidiaries. Led by an experienced management team with a successful track record of developing and operating domestic and international private mortgage insurers, NMI intends to help families achieve homeownership sooner by facilitating affordable low-down-payment mortgages.

Bradley Shuster is NMI’s Chairman, President and Chief Executive Officer. An accomplished mortgage insurance executive with over 30 years of industry experience, Mr. Shuster was responsible for the international operations of PMI Mortgage Insurance Co. (“PMIC”), coordinating both acquisitions in Australia and de novo operations in Canada, Europe and Hong Kong. Mr. Shuster left PMIC in 2008, after PMIC’s Australian operations were sold to QBE Group. Mr. Shuster leads a management team that averages over 20 years of industry experience and has previously led the formation and development of successful domestic and international private mortgage insurers. NMI’s executive management team includes John “Jay” Sherwood, Chief Financial Officer, and James McCourt, Head of Insurance Operations.

Mr. Shuster said, “We are pleased to have completed this equity offering. We are eager to begin the state insurance and Fannie Mae/Freddie Mac approval processes to establish an underwriting-focused mortgage insurer that we believe will deliver a superior level of service and be committed to its customers, employees and investors. We believe mortgage insurance is a critical component of the U.S. housing finance system, and we look forward to assisting families realize the American dream of home ownership.”

The private placement transaction was executed pursuant to Rule 144A of the Securities Act of 1933 and other exemptions. FBR Capital Markets & Co., a subsidiary of FBR & Co. (NASDAQ: FBRC), served as financial advisor and placement agent for the offering. Wachtell, Lipton, Rosen & Katz served as NMI’s legal advisor. Mayer Brown LLP served as NMI’s insurance regulatory counsel. Sidley Austin LLP acted as FBR’s legal advisor in connection with the offering.

This announcement relates to an offering that has closed and does not constitute an offer to sell or the solicitation of an offer to buy any securities.

About NMI Holdings, Inc.

NMI Holdings, Inc. was created to build a private mortgage insurer delivering high quality customer service and strong investor results. Led by a highly experienced and accomplished management team with a successful track record of developing and operating domestic and international private mortgage insurers, NMI intends to offer mortgage insurance on a national basis after receipt of the requisite approval from Fannie Mae or Freddie Mac.

Forward Looking Statements This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may include, but are not limited to, statements about our future financial and operating results as well as our plans, objectives, expectations and intentions. Our forward-looking statements are generally, but not always, accompanied by words such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “should,” “may,” “plan,” “goal,” “can,” “could,” “continuing,” “ongoing,” “intend” or other words that convey the uncertainty of future events or outcomes. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Any or all of our forward-looking statements in this document may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward looking statements including, but not limited to, statements regarding (i) our status as a recently organized corporation and lack of operating history; (ii) receipt of approval from Fannie Mae or Freddie Mac; (iii) receipt of certificates of authority to act as a mortgage guaranty insurer and approvals of our insurance rates and policy forms, in each case where required, in states in which we will do business; (iv) our ability to implement our business strategy, including our ability to attract customers, implement, successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; (v) failure to develop, maintain and improve necessary information technology systems or the failure of technology providers to perform; (vi) ability to recruit, train and retain key personnel; (vii) actions of existing competitors and potential market entry by new competitors; (viii) changes to laws and regulations, including changes that could affect the residential mortgage industry generally or private mortgage insurance in particular; (ix) changes in general economic, market and political conditions and policies, interest rates, inflation and investment results or other conditions that affect the housing market or the markets for home mortgages or private mortgage insurance; (x) the reduction of the proceeds held in the investment account due to third party claims or other expenses and liabilities; and (xii) the existence of registration rights with respect to the securities being offered. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update 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.

Contacts

NMI Holdings, Inc.
Jay Sherwood, Chief Financial Officer
415-248-2909

Contacts

NMI Holdings, Inc.
Jay Sherwood, Chief Financial Officer
415-248-2909