- ARCH MI MORTGAGE NEWS WEEKLY FULL
- ARCH MI MORTGAGE NEWS WEEKLY PLUS
- ARCH MI MORTGAGE NEWS WEEKLY MAC
ARCH MI MORTGAGE NEWS WEEKLY MAC
It also involved the movement of $276 million of risk in force from Fannie Mae and Freddie Mac credit risk transfers to an unnamed third-party insurer.Īs a result of these moves, Radian Guaranty sent $282 million in capital up to the parent company and repaid a $100 million surplus note five years early. In January, Radian Group announced its MI subsidiary completed a transaction that included the merger of its reinsurance business into Radian Guaranty. NIW ended the period at $13 billion, down from $17.1 billion (24% lower) in the third quarter and $16.4 billion (21% lower) for the fourth quarter of 2021.
ARCH MI MORTGAGE NEWS WEEKLY FULL
But net income for the full year was higher, $831.4 million for 2022 versus $681.6 million in 2021. "So when you look at title with annualized revenues in the $20 billion to $25 billion kind of range, it's a big market…we thought this was a good pond to go into."įourth quarter net income was $147.4 million, compared with $178.1 million for the prior quarter and $181 million one year prior. "We love the mortgage insurance business, and we've grown it, and we think we can continue to grow it as housing grows, but the pond is only so deep," said Essent Chairman and CEO Mark Casale, during the earnings call. "Longer term, we believe Genworth wants to do a tax-free spin out of Enact to its shareholders, and we note that in order for a spin of Enact to be tax-free, Genworth cannot reduce its ownership stake in Enact below 80%."Įssent Group, which just prior to the earnings release made waves by agreeing to buy the title underwriting and agency businesses from Finance of America/Incenter, reported higher market share from the comparable periods, although the dollar volume of business slipped. "This level of dividends more than covers Genworth's $60 million of annual interest expense and is allowing the company to opportunistically buy back stock and further reduce debt," George said. Enact paid $206 million in dividends last year to Genworth and George expects a similar amount for 2023 and next year. Meanwhile, Genworth right now is unlikely to conduct a secondary public offering of Enact stock, said George. "We don't think it would necessarily change the approach to capital/risk management, although we see it being generally supportive of valuation, particularly if macro conditions were to weaken," wrote Eric Hagen, an analyst with BTIG. If the government-sponsored enterprises confirm this, Enact would no longer be subject to tougher capital requirements than its competitors. Both companies believe that financial strength conditions established by Fannie Mae and Freddie Mac at the time Enact went public had been met by year-end. In 2021, it ranked third with $97 billion written.įormer parent Genworth Financial still owns 81.4% of Enact's stock. 4 spot among the six companies at $66.5 billion. Without that transaction, NIW would have declined 4% from the third quarter and 32% from the fourth quarter of 2021, Enact said.įor the full year, though, Enact slipped to the No. In the fourth quarter, its NIW of $15 billion was 1% higher than the prior quarter but down by 29% from the $21 billion produced for the same period in 2022.īut the most recent period included a one-time deal where it provided insurance on seasoned loans. Investor interest in the deal was incredibly strong, he added, “as reflected in tighter credit spreads and a lower attachment compared to Bellemeade 2020-1.Enact reported fourth quarter net income of $144 million, compared with $194 million in the third quarter and $154 million one year prior.įor the full year, it made $704 million, an increase over the $547 million profits reported for 2021. Jim Bennison, executive vice president, alternative markets for Arch MI, said: “Investors have gotten much more comfortable with mortgage credit risk over the past several months as the effect of COVID-19 on the housing market becomes clearer.
ARCH MI MORTGAGE NEWS WEEKLY PLUS
There are also $128 million class M-1C notes with a coupon equal to one-month Libor plus 400 bps, $89.8 million class M-2 notes with a coupon equal to one-month Libor plus 600 bps and nearly $18 million class B-1 notes with a coupon of one-month Libor plus 850 bps.Īn additional $25.7 million was placed with a panel of reinsurers. The MILN is funding its reinsurance obligations through the issuance of five classes of amortising notes with 10-year legal final maturities.The deal includes just under $92 million class M-1A notes with a coupon equal to one-month Libor plus 230 basis points, and $95.5 million class M-1B notes with a coupon of one-month Libor plus 320 bps.
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