Essent Group Ltd. ("Essent") (NYSE: ESNT) reported that the Federal
Housing Finance Agency ("FHFA") released today for public input the
proposed Private Mortgage Insurer Eligibility Requirements ("PMIERs").
The PMIERs represent the standards by which private mortgage insurers
are eligible to provide mortgage insurance on loans owned or guaranteed
by Fannie Mae and Freddie Mac. Assuming the PMIERs are enacted as
proposed, Essent's mortgage insurance subsidiary, Essent Guaranty, Inc.,
would be in compliance with the new capital adequacy requirements in the
PMIERs based on financial information as of March 31, 2014.
"We commend FHFA, Fannie Mae and Freddie Mac for all of their work in
revising the PMIERs," said Mark Casale, Chairman and Chief Executive
Officer. "Updating the PMIERs is important to the health of the housing
finance system in general, and the mortgage insurance industry in
particular. We believe that the proposed risk-based capital adequacy
framework in the PMIERs is fundamentally sound. The PMIERs will serve as
an important set of national standards that give industry counterparties
added confidence in the claims paying capacity of private mortgage
insurance companies, including Essent."
"Based in part on Essent's strong capital levels and the exceptional
credit quality of our portfolio," Casale added, "we believe that Essent
is well positioned under the PMIERs to continue to serve the growing
demand for private mortgage insurance."
Essent expects to provide details relative to its analysis of the
proposed PMIERs as a part of its earnings release for the second quarter
to be issued in early August 2014.
Forward Looking Statements
This press release may include "forward-looking statemens" which are
subject to known and unknown risks and uncertainties, many of which may
be beyond our control. Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may,"
"plan," "seek," "comfortable with," "will," "expect," "intend,"
"estimate," "anticipate," "believe" or "continue" or the negative
thereof or variations thereon or similar terminology. Actual events,
results and outcomes may differ materially from our expectations due to
a variety of known and unknown risks, uncertainties and other factors.
Although it is not possible to identify all of these risks and factors,
they include, among others, the following: changes in or to Fannie Mae
and Freddie Mac (the "GSEs"), whether through Federal legislation,
restructurings or a shift in business practices; failure to continue to
meet the mortgage insurer eligibility requirements of the GSEs;
competition for customers; lenders or investors seeking alternatives to
private mortgage insurance; an increase in the number of loans insured
through Federal government mortgage insurance programs, including those
offered by the Federal Housing Administration; decline in new insurance
written and franchise value due to loss of a significant customer;
decline in the volume of low down payment mortgage originations; the
definition of "Qualified Mortgage" reducing the size of the mortgage
origination market or creating incentives to use government mortgage
insurance programs; the definition of "Qualified Residential Mortgage"
reducing the number of low down payment loans or lenders and investors
seeking alternatives to private mortgage insurance; the implementation
of the Basel III Capital Accord discouraging the use of private mortgage
insurance; a decrease in the length of time that insurance policies are
in force; uncertainty of loss reserve estimates; deteriorating economic
conditions; non-U.S. operations becoming subject to U.S. Federal income
taxation; becoming considered a passive foreign investment company for
U.S. Federal income tax purposes; and other risks and factors described
in Part I, Item 1A "Risk Factors" of our Annual Report on Form 10-K for
the year ended December 31, 2013 filed with the Securities and Exchange
Commission on March 10, 2014. Any forward-looking information presented
herein is made only as of the date of this press release, and we do not
undertake any obligation to update or revise any forward-looking
information to reflect changes in assumptions, the occurrence of
unanticipated events, or otherwise.
About the Company
Essent Group Ltd. (NYSE: ESNT) is a Bermuda-based holding company which,
through its wholly owned subsidiary Essent Guaranty, Inc., offers
private mortgage insurance for single-family mortgage loans in the
United States. Essent provides private capital to mitigate mortgage
credit risk, allowing lenders to make additional mortgage financing
available to prospective homeowners. Headquartered in Radnor,
Pennsylvania, Essent Guaranty, Inc. is licensed to write mortgage
insurance in all 50 states and the District of Columbia, and is approved
by Fannie Mae and Freddie Mac. Additional information regarding Essent
may be found at www.essentgroup.com.
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