Essent Group Ltd. (NYSE: ESNT) announced today that its wholly-owned subsidiary, Essent Guaranty, Inc., has obtained $399.2 million of fully collateralized excess of loss reinsurance coverage on mortgage insurance policies written in September 2019 through July 2020 from Radnor Re 2020-2 Ltd., a newly formed Bermuda special purpose insurer. Radnor Re 2020-2 Ltd. is not a subsidiary or an affiliate of Essent Group Ltd.

Radnor Re 2020-2 Ltd. has funded its reinsurance obligations through the issuance of five classes of mortgage insurance-linked notes, with 10-year legal maturities, to eligible third party capital markets investors in an unregistered private offering.

The mortgage insurance-linked notes issued by Radnor Re 2020-2 Ltd. consist of the following five classes:

  • $79,832,000 Class M-1A Notes with an initial interest rate of one-month LIBOR plus 315 basis points;

  • $93,137,000 Class M-1B Notes with an initial interest rate of one-month LIBOR plus 400 basis points;

  • $93,137,000 Class M-1C Notes with an initial interest rate of one-month LIBOR plus 460 basis points;

  • $99,790,000 Class M-2 Notes with an initial interest rate of one-month LIBOR plus 560 basis points;

  • $33,263,000 Class B-1 Notes with an initial interest rate of one-month LIBOR plus 760 basis points;

The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the aforementioned securities and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom, such an offer, solicitation or sale would be unlawful.

Forward-Looking Statements

This press release may include “forward-looking statements” which are subject

  • The number of mortgages in active pandemic-related bailouts plunged as the first wave of forbearance plans hit the end of their six-month term.
  • Over the past week, active forbearances dropped by 649,000, or 18%, according to Black Knight, a mortgage technology and data analytics firm.
  • That brings the total number of plans below 3 million for the first time since April.
  • As of Oct. 6, 2.97 million homeowners remain in pandemic-related forbearance plans, or 5.6% of all active mortgages, down from 6.8% the previous week.



a large brick building with grass in front of a house: Prospective home buyers arrive with a realtor to a house for sale in Dunlap, Illinois.


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Prospective home buyers arrive with a realtor to a house for sale in Dunlap, Illinois.

The number of mortgages in active pandemic-related bailouts plunged in the past week as the first wave of forbearance plans hit the end of their six-month term.

It was the largest decline since the crisis began.

Over the past week, active forbearances dropped by 649,000, or 18%, according to Black Knight, a mortgage technology and data analytics firm. That brings the total number of plans, both government and private sector, below 3 million for the first time since April. In addition, the decline was noticeably larger than the drop of 435,000 when the first wave of forbearances hit the three-month mark in early July.

As of Oct. 6, 2.97 million homeowners remain in pandemic-related forbearance plans, or 5.6% of all active mortgages, down from 6.8% the previous week. The loans represent collectively $614 billion in unpaid principal.

Video: Mortgage rates hit new low as homeowners move to refinance (CNBC)

Mortgage rates hit new low as homeowners move to refinance

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These plans allow borrowers to delay their monthly payments for at least 30 days and up to one year. The plans are generally administered in three-month blocks, with the option to renew

This article is part of a Wall Street Journal guide comparing President Trump and former Vice President Joe Biden on issues from climate change to health care and jobs.

WASHINGTON—Donald Trump and Joe Biden have divergent views on the federal government’s role in the $11 trillion mortgage market, with potential consequences for the price of home loans for millions of Americans.

In keeping with the Republican Party’s emphasis on limiting the government’s role in the economy, the Trump administration aims to return two giant mortgage-finance companies—

Fannie Mae

and

Freddie Mac

—to private hands over the next couple of years.

A Biden administration, in contrast, would be in no hurry to release the companies, which the government has controlled since 2008. Instead, the Democratic former vice president would focus on ways to use the companies to boost housing affordability and promote homeownership.

Here is a look at the competing policies and what either approach might mean for housing-market consumers.

What’s at stake for borrowers?

Mortgage affordability could be affected. The Biden camp argues that the Trump administration’s approach would bring higher mortgage rates. Republicans say the government should play a smaller role backstopping the mortgage market, and that any increase in rates would be minimal.

What are Fannie and Freddie?

The U.S. government created the mortgage finance companies to promote affordable homeownership. President Franklin D. Roosevelt created Fannie Mae in 1938 to help provide money for home mortgages and spur housing construction. Freddie was created in 1970 to cater to smaller lenders.

Fannie and Freddie don’t lend money directly to home buyers. Instead, they buy mortgages from lenders, repackage them into securities and sell those securities to investors.

Election 2020 Policy Issues

See where President Trump and former Vice President Joe Biden stand on policy issues from Big Tech, taxes

By Lawrence White

LONDON (Reuters) – Does a cancelled gym membership spell financial disaster?

That is the type of question British banks are asking as they try to work out whether borrowers owing some 75 billion pounds ($96 billion) in home loans will be good for it when a payment holiday, introduced when the coronavirus crisis first hit, ends.

Lenders are scouring current account transactions, credit card spending and trends in Internet searches for clues about customer finances as part of a wider effort to understand the damage to their portfolios from the pandemic.

The once-in-a-lifetime mix of economic shutdowns, unprecedented government support and an uncertain path to recovery have upended old risk models, based on historical data, necessitating a more dynamic, forward-looking way of analysing lending risk. The searches involve pouring over anonymised data and are a way of surveying overall risk rather than individual customer habits.

The stakes are high: underestimate the risks and bank bosses and shareholders could be in for a nasty jump in losses, overestimate them and banks could rein in lending when it is needed most.

Executives at Britain’s top banks say calculating the hit to loans, from mortgages to corporate debt, is the biggest risk management challenge they have seen since the 2008 crisis.

“This time there is economic volatility beyond what we have ever seen, there is unprecedented government support, and to try and model it all with 100% accuracy is impossible,” said Matt Waymark, director of finance at NatWest Group <NWG.L>.

Some 300 billion pounds in payment breaks were granted on British mortgages, part of a series of measures aimed at propping up households hit by the virus, and around 70-80% of those have resumed payments, bankers and analysts told Reuters.

That leaves nearly $100 billion outstanding at a time when

Oct. 7 (UPI) — Mortgage rates in the United States have fallen to new lows and spurred a flurry of applications to refinance, an industry report said Wednesday.

The Mortgage Bankers Association said in its weekly report that interest rates for a 30-year fixed-rate mortgage fell to 3.01% last week. Moreover, refinancing applications rose 8% and are 50% higher than they were last year at this time.

“Mortgage rates declined across the board last week — with most falling to record lows — and borrowers responded,” Joel Kan, MBA associate vice president of economic and industry forecasting, said in a statement. “The refinance index … hit its highest level since mid-August.”

The lower mortgage rates — which have sunk to record levels multiple times in recent months — have not corresponded, however, to a surge in applications from homebuyers.

While those applications are 21% higher year-to-year, they declined by 2% last week and are 4% off their level a month ago.

The Market Composite Index, which measures application volume, increased 4.6% on a seasonally adjusted basis, MBA said. On an unadjusted basis, it rose 5%.

Analysts said in the report the COVID-19 pandemic has both contributed to and taxed the housing market.

“There are signs that demand is waning at the entry-level portion of the market because of supply and affordability hurdles, as well as the adverse economic impact the pandemic is having on hourly workers and low-and moderate-income households,” Kan noted.

“As a result, the lower price tiers are seeing slower growth, which is contributing to the rising trend in average loan balances.”

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