NMI Holdings, Inc. (NMIH) Company Profile

Background

Overview

NMI Holdings, Inc. (NASDAQ: NMIH) is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based private mortgage insurance company. Established in 2011 and headquartered in Emeryville, California, NMIH began operations in 2012 and issued its first mortgage insurance policy in 2013. The company provides private mortgage insurance (MI) through its primary insurance subsidiary, NMIC, which is domiciled in Wisconsin and regulated by the Wisconsin Office of the Commissioner of Insurance. NMIC is approved as an MI provider by the Government-Sponsored Enterprises (GSEs) and is licensed to write coverage in all 50 states and the District of Columbia.

Mission and Vision

NMIH's mission is to enable low down payment borrowers to achieve homeownership while protecting lenders and investors against losses related to borrower defaults. The company's vision focuses on supporting affordable and sustainable homeownership, thereby accelerating financial inclusion across all communities.

Primary Area of Focus

The company's primary focus is on providing private mortgage insurance, which plays a critical role in the U.S. housing market by mitigating mortgage credit risk and facilitating the secondary market sale of high loan-to-value (LTV) residential loans to the GSEs. This enables lenders to increase their capacity for mortgage commitments and expand financing access to existing and prospective homeowners.

Industry Significance

NMIH operates within the private mortgage insurance industry, which is integral to the U.S. housing market. By providing MI, the company helps lenders manage risk and supports the broader economy by facilitating homeownership. As of March 31, 2025, NMIH had issued master policies with 2,101 customers, including national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. The company reported $211.3 billion of primary insurance-in-force (IIF) and $56.5 billion of primary risk-in-force (RIF).

Key Strategic Focus

Core Objectives

NMIH aims to build on its position in the private MI market by expanding its customer base and growing its insured portfolio of high-quality residential loans. The company focuses on long-term customer relationships, disciplined and proactive risk selection and pricing, fair and transparent claim payment practices, responsive customer service, and financial strength and profitability.

Specific Areas of Specialization

The company specializes in private mortgage insurance, offering primary and pool insurance services, as well as outsourced loan review services to mortgage loan originators. NMIH serves a diverse range of clients, including national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders.

Key Technologies Utilized

NMIH utilizes its proprietary Rate GPS® pricing platform to dynamically evaluate risk and price its policies. This platform is a significant component of the company's differentiated risk management approach, emphasizing individual underwriting review or validation of the vast majority of the loans it insures.

Primary Markets or Conditions Targeted

The company's primary market is the U.S. housing sector, focusing on providing mortgage insurance for high loan-to-value residential loans. By doing so, NMIH facilitates the secondary market sale of these loans to the GSEs, thereby supporting lenders in increasing their capacity for mortgage commitments and expanding financing access to homeowners.

Financials and Funding

Funding History

NMIH was incorporated in May 2011 and began operations in 2012. The company has raised significant capital to support its growth and operations, including investments from global private equity firms such as Insight Partners, Francisco Partners, and Great Hill Partners.

Total Funds Raised

The company has raised over $620 million in total funding.

Notable Investors

Notable investors include Insight Partners, Francisco Partners, and Great Hill Partners.

Intended Utilization of Capital

The capital raised has been utilized to support NMIH's growth initiatives, including expanding its customer base, enhancing its technological platforms, and increasing its capacity to underwrite new business. The company has also invested in its people and communities, advanced its technology platform, and focused on environmental, social, and governance (ESG) matters.

Pipeline Development

Key Pipeline Candidates

NMIH's pipeline primarily consists of high-quality residential loans that it insures through its private mortgage insurance services. The company focuses on building a diversified, high-quality insured portfolio by establishing customer relationships with a broad group of mortgage lenders.

Stages of Clinical Trials or Product Development

As a financial services company, NMIH does not engage in clinical trials or product development in the traditional sense. Instead, the company focuses on developing and offering mortgage insurance products and services to its clients.

Target Conditions

The company's target conditions include mitigating mortgage credit risk and facilitating the secondary market sale of high loan-to-value residential loans to the GSEs. This enables lenders to increase their capacity for mortgage commitments and expand financing access to homeowners.

Relevant Timelines for Anticipated Milestones

NMIH's milestones are centered around expanding its insured portfolio, enhancing its technological platforms, and increasing its market penetration. The company has reported consistent growth in its primary insurance-in-force, reaching $207.5 billion in Q3 2024, $210.2 billion by year-end 2024, $211.3 billion in Q1 2025, $214.7 billion in Q2 2025, and $218.4 billion in Q3 2025.

Technological Platform and Innovation

Proprietary Technologies

NMIH's proprietary Rate GPS® pricing platform is a significant technological asset. This platform dynamically evaluates risk and prices policies, supporting the company's differentiated risk management approach.

Significant Scientific Methods

The company employs a differentiated risk management approach that emphasizes individual underwriting review or validation of the vast majority of the loans it insures. This method is supported by its proprietary Rate GPS® pricing platform.

AI-Driven Capabilities

While specific details about AI-driven capabilities are not provided, NMIH's focus on technological innovation suggests potential integration of advanced data analytics and machine learning techniques to enhance risk assessment and pricing models.

Leadership Team

Key Executive Profiles

• Adam Pollitzer: President and Chief Executive Officer. Adam has been with NMIH since its inception and has played a pivotal role in its growth and strategic direction.

• William J. Leatherberry: Chief Financial Officer. William has extensive experience in financial management and has been instrumental in overseeing NMIH's financial operations.

• Robert Owen Smith: Chief Risk Officer. Robert leads the company's risk management strategies, ensuring effective mitigation of potential risks.

• Michael Curry Montgomery: Chief Operating Officer. Michael oversees the company's daily operations, driving efficiency and operational excellence.

• Michael J. Embler: Chief Legal Officer. Michael manages the company's legal affairs, providing strategic legal guidance.

• Mohammad Nawaz Yousaf: Chief Technology Officer. Mohammad leads the company's technological initiatives, including the development and implementation of the Rate GPS® pricing platform.

• Norman Peter Fitzgerald: Chief Marketing Officer. Norman drives the company's marketing strategies, enhancing brand presence and customer engagement.

• Nicholas Daniel Realmuto: Chief Human Resources Officer. Nicholas oversees human resources, focusing on talent acquisition and organizational development.

• James G. Jones: Chief Strategy Officer. James leads strategic planning and business development initiatives, guiding the company's long-term growth.

Leadership Changes

Specific details about recent leadership changes are not provided in the available information.

Competitor Profile

Market Insights and Dynamics

The private mortgage insurance industry is highly competitive, with several large and mid-sized players operating across the U.S. market. Competitors typically focus on offering mortgage insurance products tailored to the needs of lenders ranging from national and regional banks to credit unions and non-bank lenders. Key competitive factors include underwriting accuracy, pricing flexibility, technological integration, customer service responsiveness, and regulatory compliance.

Competitors also leverage advanced technology platforms and data analytics to improve risk assessment and policy pricing. Market participants continuously adapt to regulatory changes, evolving housing market conditions, and lenders’ shifting needs to maintain and grow their market share.

Competitive Positioning

NMIH distinguishes itself through its proprietary Rate GPS® pricing platform and its commitment to individual underwriting review or validation of the majority of insured loans. This approach supports differentiated risk management and price accuracy. Additionally, NMIH serves a broad client base, including diverse lender types, enabling it to maintain a significant presence across multiple market segments.

Competitors typically have similar product offerings but may differ in their technological capabilities, geographic reach, and scale of operations. Maintaining financial strength, claim payment discipline, and proactive relationship management are critical competitive advantages in this industry.

Technology and Innovation among Competitors

Competitors also invest in technology-driven solutions, including AI and data analytics, to enhance underwriting precision and operational efficiency. These technologies assist in dynamic risk-based pricing, fraud detection, and predictive modeling to mitigate potential losses.

In summary, the competitive landscape is characterized by a focus on technological differentiation, strong risk management practices, diverse customer relationships, and the ability to adapt to changing market and regulatory conditions to support sustainable growth.