Mortgage insurance group NMI Holdings, Inc. has now effectively secured $364 million of collateralised home loan reinsurance security from the capital markets with the Oaktown Re VII Ltd. transaction, which is its 2nd home mortgage insurance-linked notes issuance of the year.As we discussed previously this month, NMI was back in the capital market with a freshly signed up Bermuda domiciled unique purpose insurer, Oaktown Re VII Ltd., looking for to provide 5 tranches of home mortgage insurance-linked securities (ILS) notes, to add nearly $364 countless extra home mortgage reinsurance protection.
Now, the offer has completed and NMI achieved success once again in this issuance, which follows on from a $367 million Oaktown Re VI Ltd. offer earlier in 2021.
NMI has been sourcing capital market investor backed fully-collateralized mortgage reinsurance defense for its completely owned subsidiary National Mortgage Insurance Corporation through these Oaktown Re transactions.
Details of every Oaktown Re home loan ILS offer can be found in our extensive insurance-linked securities (ILS) Deal Directory.
The other day, NMI reported the conclusion of the new Oaktown Re VII deal, stating that the $364 million home loan insurance-linked notes using by Oaktown Re VII Ltd. was now closed.
The $364 countless mortgage insurance-linked notes released by Oaktown Re VII have a 12.5-year legal maturity and consist of the following five classes:
NMI described that the issuance of notes will offer its subsidiary National Mortgage Insurance Corporation (National MI) with $364 million of fully collateralized excess of loss reinsurance security, covering an existing portfolio of home mortgage insurance coverage composed mostly from April 1, 2021 through September 30, 2021.
The brand-new excess of loss reinsurance protection supplies National MI security for aggregate insured losses across the subject portfolio loans, starting at a 1.85% cumulative claim rate threshold and continuing as much as an eventual 7.45% aggregate detachment level, the company stated.
As we explained formerly, the home loan ILS offer covers property mortgage insurance plan, across a pool of 122,629 prime, set- and adjustable-rate, one-to-four-unit, mortgage loans with a total insured loan balance of approximately $40 billion.
You can check out all about this new Oaktown Re VII Ltd. home mortgage ILS transaction from NMI Holdings and every other home mortgage ILS deal our detailed disaster bond and insurance-linked security Deal Directory.
$ 126,468,000 Class M-1A Notes with an initial interest rate of one-month SOFR plus 1.60%.
$ 110,660,000 Class M-1B Notes with a preliminary rates of interest of one-month SOFR plus 2.90%.
$ 55,329,000 Class M-1C Notes with a preliminary rates of interest of one-month SOFR plus 3.35%.
$ 51,378,000 Class M-2 Notes with a preliminary rate of interest of one-month SOFR plus 3.70%.
$ 19,761,000 Class B-1 Notes with an initial rates of interest of one-month SOFR plus 4.40%.