NMI Holdings has raised gross proceeds of $550m through the sale of common stock in a private placement and expects to use the majority portion of the offering to capitalize its existing insurance subsidiaries.
NMI isyet to gain approval from state insurance regulatory body and the Federal National Home Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Association (Freddie Mac), said the firm.
The underwriting conglomerate will be headed by a team of experienced management with a successful track record of developing and operating domestic and international private mortgage insurers.
With the launch of the new insurance entity, NMI aims to help families achieve homeownership sooner by facilitating affordable low-down-payment mortgages.
NMI’s chairman, president and chief executive officer Bradley Shuster will spearhead the proposed insurance enterprise.
Shuster said, "We believe mortgage insurance is a critical component of the US housing finance system, and we look forward to assisting families realize the American dream of home ownership."
The financial advisor and placement agent for the offering was served by FBR Capital Markets & Co, a subsidiary of FBR & Co, while Wachtell, Lipton, Rosen & Katz acted as NMI’s legal advisor.