RALEIGH, N.C., Aug. 21, 2024 (GLOBE NEWSWIRE) -- Enact Holdings, Inc. (NASDAQ:ACT) (Enact), a leading provider of private mortgage insurance through its insurance subsidiaries, today addressed the updated Private Mortgage Insurer Eligibility Requirements (PMIERs) released by Fannie Mae and Freddie Mac (the GSEs), and the Federal Housing Finance Administration (FHFA) on August 21, 2024 which will be phased-in between March 31, 2025 and September 30, 2026.
"The changes to the PMIERs requirements, which were developed in collaboration with the GSEs and FHFA, will further strengthen the risk-based capital framework for the private mortgage insurance industry. Enact remains well positioned for continued prudent capital sufficiency in excess of these requirements while continuing to execute on our capital allocation strategy," said Rohit Gupta, President and CEO of Enact. "Going forward, we remain committed to playing our important role of helping individuals responsibly achieve the dream of homeownership."
As of June 30, 2024, Enact had approximately 169% of the required assets under the current PMIERs framework, representing approximately $2.1 billion above the mandated thresholds.
If the new PMIERs standards had been in effect on June 30, 2024, Enact estimates its PMIERs sufficiency ratio would have been approximately 153%, with available assets exceeding the new requirements by approximately $1.6 billion. The difference is primarily due to the exclusion of certain high-quality NAIC 1 and NAIC 2 designated bonds in the updated PMIERs framework.
The ultimate impact of the PMIERs changes will be influenced by investment portfolio maturities, dispositions, reinvestments, and overall business and economic performance between ...
