Mortgage insurance group NMI Holdings, Inc. is back in the capital markets for what will be its 6th mortgage insurance-linked notes deal, with a $367 million Oaktown Re VI Ltd.At $367 million, throughout the 5 classes of home mortgage insurance-linked securities (ILS) being issued, this would be the largest deal NMI Holdings has sponsored so far.
NMI has actually been sourcing capital market financier backed fully-collateralized home loan reinsurance protection for its wholly owned subsidiary National Mortgage Insurance Corporation through these Oaktown Re transactions.
Details of every Oaktown Re home mortgage ILS deal can be discovered in our substantial insurance-linked securities (ILS) Deal Directory.
NMI has signed up Oaktown Re VI Ltd. as a recently formed Bermuda special-purpose insurer, established for the issuance of series of notes connected to the efficiency of its home loan insurance coverage book.
For this transaction, Oaktown Re VI is releasing five tranches of mortgage insurance-linked notes which will be sold to investors and the earnings utilized to collateralize excess of loss home mortgage reinsurance contracts between the issuer, Oaktown Re VI Ltd. and the recipient of the protection, NMIs subsidiary National Mortgage Insurance Corporation.
In total, $367 countless 12.5-year term home mortgage insurance-linked notes are on offer from the Oaktown Re VI Ltd. issuance, with this transaction anticipated to close on or around April 27th 2021.
Details of the 5 tranches being provided by Oaktown Re VI Ltd., with their rates in bps above SOFR and provisionary rankings from Moodys are listed below:
$ 88.5 m, Class M-1A, SOFR +165, Assigned (P) Baa2 (sf).
$ 199.5 m Class M-1B, SOFR +205, Assigned (P) Baa3 (sf).
$ 70.8 m, Class M-1C, SOFR +300, Assigned (P) Ba2 (sf).
$ 66.4 m, Class M-2, SOFR +395, Assigned (P) B2 (sf).
$ 22.1 m, Class B-1, SOFR +550, Assigned (P) B3 (sf).
As soon as this brand-new Oaktown Re VI Ltd. issuance is finished, National Mortgage Insurance Corporation will benefit from around $367 countless completely collateralized excess of loss home mortgage reinsurance security.
The reinsurance will cover an existing portfolio of mortgage insurance coverage underwritten between July 1st 2019 through March 31st 2021, with the swimming pool featuring 141,760 prime, set- and adjustable-rate home mortgage loans with an overall insured loan balance of approximately $46 billion.
You can read everything about this brand-new Oaktown Re VI Ltd. home loan ILS transaction from NMI Holdings and every other home loan ILS deal our thorough catastrophe bond and insurance-linked security Deal Directory.