Mixed bag of MI company news

WalletHub published its findings from analyzing the 2015 best and worst small cities in America. The analysis compared 1,268 U.S. cities with a population between 25,000 and 100,000.The rankings were calculated by determining affordability, economic health, education and health and quality of life. The results of the top ten best small cities include Princeton, NJ, Littleton, CO, Dublin, OH, Brookfield, WI, Leewood, KS, Southlake, TX, Westfield, TN, Northampton, MA, Ankeny, IA and Crystal Lake, IL. The worst small cities (which are mostly located in California) include Paramount, CA, Delano, CA, Watsonville, Ca, South Gate, CA, Lynwood, CA, Compton, CA, Bell Gardens, CA, Huntington Park, CA and Bell, CA. What is California doing with the money from its 13% personal tax rate?

National MI reported a pre-tax loss of $4.9 million and operating earnings per share of $0.09 for the third quarter. But the numbers were decent. Net premiums earned increased to $12.8 million from $8.9 million QoQ, and investment income was up $1.9 million from $1.7 million. National MI wrote $3.6 billion of new insurance written, up from $2.55 billion the previous quarter and the company reported $19.7 million of operating expenses. The loss provision totaled $181 thousand, equaling to a loss ratio of 1.4 percent.

The parent - NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States - announced a $150 million senior secured term loan. The 3-year Term Loan B has a variable interest rate of LIBOR + 7.50% and will amortize quarterly, with $375k of principal due at the end of each quarter. Management noted this loan, combined with current resources, will allow NMIH to write approximately $20 billion of NIW. So yes, proceeds from the loan will be used primarily to support the continued growth of IIF. The loan will also allow the company to comply with financial requirements of PMIERs as of December 31, 2015.

Arch MI has published the fall 2015 issue of the Housing and Mortgage Market Review. The report suggests that the national average risk of price declines remains at 6 percent, but Alaska, Wyoming and North Dakota all have increased due to the decline in energy prices. States that are dependent on energy will experience slowing home price growth and price declines. Although on a national level, home prices should increase more quickly than inflation due to low inventory of homes for sale or rent. Arch MI risk Index also estimates that home prices will be lower in two years.